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Aged, Blind and Disabled Manual Policy Manual Number: 125.010 Section: Institutional Medicaid Chapter: Transfer of Assets and Penalty Periods
January 5, 2026 Division of TennCare 10
i. Burial space excluded based on its intended use; and ii. Real property excluded as property essential to self-support or as a homestead.
j. Transfer Executed by an Individual’s Legal Representative A transfer of assets for less than FMV made by any of the following people or entities will result in a penalty period for the institutionalized individual:
i. A person, court, or administrative body with legal authority to act on behalf of or in place of the individual and/or her spouse; or ii. A person, court or administrative body acting at the direction of or request of the individual and/or her spouse.
k. Compensation i. Determining Compensation To determine whether the individual received fair compensation for the transferred asset, subtract the amount the individual received in the transaction from the FMV of the asset, as follows:
FMV – Compensation Received = Uncompensated Value (Round the result to the nearest whole dollar)
If the individual alleges that part or all of his compensation is in-kind, attach a dollar value to the support and/or maintenance and subtract that value from the FMV as shown above. If the individual alleges he has an agreement for total support and care from the individual to whom he transferred the asset, determine the monthly amount of the support and care contribution. If the individual has transferred an asset in exchange for lifetime medical care, he may not be eligible for TennCare Medicaid benefits. See Section 1(n) Life Care Contracts.
ii. Fair Compensation An individual receives fair compensation for a transferred asset if the compensated value is equal to or greater than 100% of the FMV of the asset on the date of transfer or contract for sale. Compensation may be in cash or in-kind.
iii. In-Kind Compensation In-kind compensation is limited to agreements of support or maintenance. Compensation in the form of support or maintenance is acceptable if the individual can provide verification of the value of the in-kind compensation in written documentation form, including cancelled checks, receipts, etc.