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North Carolina Department of Health and Human Services AGED, BLIND AND DISABLED MEDICAID MANUAL MA-2245

UNDUE HARDSHIP WAIVER FOR TRANSFER OF ASSETS

REVISED 11/01/11 – CHANGE NO. 17-11 (II.A.3.) a. Seeking advice of an attorney and pursuing legal or equitable remedies such as asset freezing, assignment, or injunction; or seeking modification, avoidance or nullification of a financial instrument, promissory note, loan, mortgage, or other property agreement, or other similar transfer agreement; and

b. Cooperating with any attempt to recover the transferred asset or the fair market value of the transferred asset.

B. Undue hardship does not exist when the only hardship that would result is the a/r or a/r’s spouse’s inability to maintain a pre-existing life style or cause an inconvenience for the a/r or a/r’s spouse.

C. The following persons may request an undue hardship waiver of the penalty period:

1. The a/r, or

2. The a/r’s spouse or representative, or

3. The institution where the a/r resides when the a/r or the a/r’s authorized representative gives written consent to the facility.

III. PROCEDURES FOR REQUESTING UNDUE HARDSHIP DETERMINATION AND DOCUMENTATION

A. After the sanction period is established and was not rebutted, notify the a/r in writing of the sanction period and the undue hardship waiver process using DMA-5113, Notification of Right to Request an Undue Hardship Waiver (Transfer of Assets). If appropriate, also send a notice of pending Medicaid application, DMA-5098/DMA-5098S, Medicaid Application Pending.

B. The a/r must request the undue hardship waiver within 12 calendar days from the date of the DMA-5113. If the a/r does not request an undue hardship waiver within 12 calendar days from the date of the notice, impose the transfer of asset penalty. Send the appropriate notice. See MA-2240, Transfer of Assets, XIV.D.

C. The request may be made verbally or in writing.

D. Document the date of the initial request in the county record.

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