Transfers to Relatives for Services Received 510-05-80-35

(Revised 12/1/19 ML #3569)

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(N.D.A.C. Sections 75-02-02.1-33.1 and 75-02-02.1-33.2)

Where any income or asset is transferred to a relative for services or assistance furnished by the relative, the services or assistance furnished may not be treated as consideration for the transferred income or asset unless:

The transfer is made pursuant to a valid written contract entered into prior to rendering the services or in the absence of a valid written contract, evidence is provided the services were required and provided;

The contract was executed by the individual or the individual's fiduciary who is not a provider of services or assistance under the contract;

Example: It is acceptable for a Medicaid recipient’s fiduciary to sign the contract to have a third party provide the services.

Example: It is not acceptable for a Medicaid recipient’s fiduciary to sign the contract to have the fiduciary provide the services.

Example: It is acceptable for a competent Medicaid recipient to sign the contract to have the fiduciary provide the services.

Compensation is consistent with rates paid in the open market for the services actually provided; and

The parties' course of dealing included paying compensation upon rendering services or assistance, or within 30 days thereafter.