003.04(A) DEPRIVATION OF RESOURCES.

Any action taken by the applicant or client, or any other person or entity, which reduces or eliminates the applicant’s, client’s, or spouse’s recorded ownership or control of the asset for less than fair market value is a deprivation of resources. The fair market value of a resource at the time the resource was disposed of must be verified and the equity value of the resource must be determined by taking into consideration any encumbrances against the resource. A deprivation of resources includes: (i) Recorded transfer of ownership of real property; (ii) Not receiving the spousal share of an augmented estate; (iii) Purchase of a life estate in another individual’s home without meeting the 12-month requirement to reside there; (iv) Promissory notes, loans, mortgages, and contract sales for less than fair market value or which are for at least fair market value and are not enforced; (v) Purchase of an irrevocable, non-assignable annuity, if Medicaid is not the preferred beneficiary and the annuity is issued on or after February 8, 2006; (vi) Any transfer above the protected spousal reserved amount to a community spouse; (vii) Purchase of any contract or financial instrument, including an endowment or insurance, where the criteria for fair market value are not met; (viii) Resources transferred to a pooled trust established for the benefit of a person 65 years old or greater at the time of transfer; and (ix) Transfer or gift of any resource to a third party for less than fair market value.