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Division of Welfare and Supportive Services F-415.2 Medical Assistance Manual TRANSFER OF ASSETS 23 Oct 01 MTL 04/23 TREATMENT OF CERTAIN KINDS OF ASSET TRANSFERS In a transaction involving a promissory note, loan, or mortgage, a transfer of assets has occurred unless all of the following criteria are met:

a. The repayment term is actuarially sound;

b. Payments are made in equal amounts during the term of the loan with no deferral of payments and no balloon payments; and

c. The cancellation of the balance of the note, loan, or mortgage upon the death of the lender is prohibited.

Note: If the above criteria are not met, the amount of the transfer is the value of the outstanding balance due as of the date of the individual’s application for Medicaid coverage of LTC or HCBW services.

F-415.23 Personal Care and Home Care Contract Agreements

When assistance and/or services are provided to the applicant/recipient, regardless of whether it is by a relative or non-relative, compensation for past assistance and/or services will be considered a transfer for less than fair market value. If the transfer of assets decision is appealed or rebutted by the applicant/recipient or care provider, the fair market value of the assistance and/or services may be determined by consultation with area businesses which provide such services.

A contract that provides advanced payment for expenses, including, but not limited to, repairs, maintenance, property taxes, homeowner’s insurance, heat and utilities for real property/homestead, or that provide for monitoring health care, securing hospitalization, medical treatment, visitation, entertainment, travel and/or transportation, financial management or shopping, etc., is considered a transfer of assets. Consider all payments for care and services which were made during the look-back period as transfer of assets. Contracts/agreements that include the provision of companionship are prohibited.

All Personal Care and Home Care contracts/agreements and payments made therein, regardless of whether between an applicant/recipient and a relative or an applicant/recipient and a non-relative, must be evaluated for transfer of assets.

Personal Care and Home Care contracts/agreements shall be considered a transfer for less than fair market value unless the agreement meets all of the following:

a. The services must be performed after a written legal contract/agreement has been executed between the applicant/recipient and the provider. The contract/agreement must be dated, and the signatures must be notarized. The services are not paid for until the services have been provided (there can be no advance payment for future expenses or services); and