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Page 5 of 40 § 10:71-4.10 Transfer of assets i. The individual intended to dispose of the assets at either fair market value or for other valuable consideration; ii. The assets were transferred exclusively for a purpose other than to qualify for medical assistance; or iii. All assets transferred for less than fair market value have been returned to the individual. (f) In determining whether an asset was transferred for the sole benefit of a spouse, child or disabled individual as defined in N.J.A.C. 10:71-4.10(b) 8, the transfer shall be accomplished via a written instrument of transfer, such as a trust document, which legally binds the parties to a specific course of action and which clearly sets out the conditions under which the transfer was made, as well as who can benefit from the transfer. Moreover, the written instrument shall state that the State of New Jersey shall be the first remaining beneficiary. A transfer without such a document shall not be considered to have been made for the sole benefit of the spouse, child or disabled individual. (g) When the asset was transferred at fair market value, the application shall be processed as usual. No special procedure shall be required. (h) When the uncompensated value of transferred assets would result in no period of ineligibility for long- term care level services, the application shall be processed as usual. (i) When the uncompensated value of transferred assets results in a period of ineligibility for long-term care level services, eligibility for long-term care services shall be denied and the procedures below shall be followed: 1. The applicant shall be notified via Form PA-13 that there has been a transfer of assets for less than fair market value, the amount of the uncompensated value and the length of the penalty period. The Form PA-13 shall state that the law presumes that a transfer of assets at less than fair market value is for the purpose of establishing Medicaid eligibility for long-term level care services. 2. The applicant shall be advised that he or she may rebut the presumption that the transfer of assets was for the purpose of establishing Medicaid eligibility (see (j) below). (j) Any applicant or beneficiary may rebut the presumption that assets were transferred to establish Medicaid eligibility by presenting convincing evidence that the assets were transferred exclusively (that is, solely) for some other purpose. The applicant shall be assisted in obtaining information when necessary. However, the burden of proof shall rest with the applicant. When the applicant expresses the desire to rebut the presumption that he or she transferred assets to establish Medicaid eligibility, the procedures below shall be followed. 1. The applicant's statement concerning the circumstances of the transfer shall be included in the case record. The statement shall include, but need not be limited to, the following: i. The applicant's stated purpose for transferring the asset; ii. The applicant's attempt to dispose of the asset at fair market value; iii. The applicant's reasons for accepting less than the fair market value for the asset; iv. The applicant's means of and plans for, supporting himself or herself after the transfer; and v. The applicant's relationship, if any, to the person(s) to whom the asset was transferred. 2. The applicant shall be asked to submit any pertinent evidence (for example, legal documents, realtor agreements, and relevant correspondence) with regard to the transfer. 3. Statements shall be taken from other individuals, if such statements are material to the decision. The statement shall indicate if such individual has or had a relationship with the applicant and the extent of the relationship (that is, related by blood or marriage, friendship).