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to the a/b on the date the trust is established. Do not subtract any payments made from the trust after the trust was established.

c. Additions to existing trusts are considered a new transfer based on the date of the addition. Additions include undistributed interest earned on the trust principal. E. Stream of Income 1. A stream of income is income received on regular basis such as a pension or rental income from property. 2. Income produced from a life estate is countable to the life estate holder regardless of who receives the income. Refer to MA-2230 Financial Resources VII. A. 4.a.

3. When a stream of income is transferred or diverted, each payment is considered as a separate transfer.

F. Transfer of Income Producing Property

1. If a homesite becomes income producing, it remains a homesite for transfer of asset purposes if it meets the criteria in VII.B.1. Evaluate transfer of home sites, including those that have become income producing.

2. If income producing property that meets the 6% net annual income test (See MA- 2230, Financial Resources, for policy on the 6% net annual income test.), is transferred, evaluate for transfer of assets. The uncompensated value is the value of the property less any compensation received less any amount used to pay off an encumbrance. Do not deduct $6,000.

3. When evaluating a transfer of income producing property, do not consider as a stream of income.

G. Inheritance

A transfer also occurs when an individual takes action to waive or renounce an inheritance to which they are entitled.

X. TRANSFERS THAT MAY OR MAY NOT BE ALLOWED

A. Annuities

Evaluate all annuities held by the a/b, or the a/b’s spouse to determine if they are a resource. (See MA-2230, Financial Resources.) If the annuity is a countable resource, do not evaluate for transfer of assets sanction. If the annuity is not a resource, evaluate for a possible transfer of asset following the policy below. Use the additional resource, Annuities located on the DHB Medicaid Training Resources, as a guide.

1. The uncompensated value for non-allowable purchases of annuities is the full purchase price. Use the full purchase price to calculate the sanction.