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Aged, Blind and Disabled Policy Manual Number: 110.060 Section: Financial Eligibility Requirements Chapter: ABD Inaccessible Resources August 01, 2024 TennCare 7 balloon payments. It must prohibit the cancellation of the balance upon the death of the lender. If the required criteria are not met, the purchase of the promissory note, loan or mortgage’s outstanding balance that is owed at the time of application must be treated as a transfer of assets. EXAMPLE: Ms. Jones made an application for nursing home Medicaid on November 8, 2006. She sold her home to her daughter that same day, for $80,000. Her daughter agrees to pay $100 per month for 19 years and 11 months with a balloon payment in the last month of the term loan. Their agreement was notarized by a notary republic. Because this loan was not actuarially sound and had a balloon payment on the end, this loan must be treated as a transfer of asset. Exclude the value of the mortgage or note effective the date of application unless the individual can establish that the same conditions existed in the retro period. On excluded notes, any payments made by the debtor towards the principle or interest are counted as unearned income to the individual in the month of receipt. If a buyer cannot be found, before excluding the value of the loan or promissory note, the individual must provide written substantiation from two knowledgeable sources that the note could be sold only if discounted by more than 10%. The importance of timely reporting any change of status regarding the sale of the property must be discussed and emphasized with the individual or his/her authorized representative. An Expected Change must be scheduled to review the progress of the sale no later than three months from the date the property is placed for sale or from the date of approval if the case continues to be active. d. At Redetermination - Reasonable Efforts to Sell i. Initial Exclusion If the asset has not previously been excluded based on the offer and acceptance of a conditional assistance period, do not continue to extend benefits until such an offer and acceptance occurs (see ABD Conditional Assistance policy chapter). If the individual does not agree to the conditional assistance period, take steps to close the case observing standard adequate and advance notification procedures. NOTE: Property cannot be exempt as homestead while it is being offered for sale. A property’s exemption as homestead is voided by an attempt to sell it. ii. Real Estate Once the asset has been proven unavailable, exclude the individual’s equity value in real estate effective the date it was placed for sale. This will allow any subsequent approval and include