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529 (07/2026) Chapter 2:Eligibility • Section 10: Long-Term Care (LTC) services The financial group members who transfer an asset must do all the following in order to be eligible for benefits: • Report any transfer of assets for all members of the financial group at application, renewal and when the transfer occurs, • Provide documentation of the terms of the sale or disposal of the assets, and • Provide evidence that the transfer was not disqualifying. Transfers that are not disqualifying For the purposes of this transfer policy, “child” means a natural or adoptive son or daughter who is: • Under age 21, or • Any age and has been determined to meet the criteria for blindness or disability. A transfer of an asset by an individual or the spouse of the individual in a nonstandard living arrangement is a disqualifying transfer unless: • The transfer was made exclusively for purposes other than establishing eligibility or maintaining benefits. • The transferred item was personal belongings. • The asset was sold or traded for compensation equal to or greater than fair market value. • The asset was transferred between members of the same financial group, including members who are ineligible non-citizens or disqualified people. • The title to the asset was transferred to the individual’s spouse, to the individual’s child who is blind or has a disability under the criteria of the Social Security Administration, or another for the “sole benefit” of the spouse or a child who is blind or has a disability under the criteria of the Social Security Administration.
The transfer must be structured in such a way that no individual or entity except this spouse or child can benefit in any way from the asset transferred, whether at the time of transfer or any time in the future.
A direct transfer, transfer instrument or trust that provides for funds or property to pass to a beneficiary who is not the spouse or child who is blind or has a disability under the criteria of the Social Security Administration is not considered to be established for the benefit of one of those individuals.
In order for a transfer or a trust to be considered for the “sole benefit” of one of these individuals, the instrument or document must be irrevocable and provide for the spending of the funds involved for the benefit of the individual based on the life expectancy of the individual with the consumer named as the first remainder beneficiary.