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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 4

The Eligibility Specialist may need to contact the Register of Deeds office for the county where the land is located to determine if a reported transfer of real property has been recorded. The Eligibility Specialist may also check how the deed is registered at the Tennessee Property Data home page. This proof will determine when or if ownership status of the real property changed.

f. Determining Whether a Transfer Occurred

i. Jointly Held Assets

Creation or alterations of jointly held assets which reduce or eliminate an asset for the institutionalized individual are transfers for less than FMV.

1. Transfers Involving Jointly Held Assets Examples of transfers for less than FMV include:

a. An individual is added to an “and” account and the new owner refuses to sign for a withdrawal of funds; or b. Removal of an institutionalized individual’s name from an account that he previously co-owned; or c. Addition of a joint owner who removes funds from the account for uses not allowed by policy (i.e., not for the sole benefit of a spouse or blind or disabled child).

2. Evaluation of Evidence

To determine whether a transfer took place under these conditions, evaluate the evidence and ask these questions:

a. How long has the asset been jointly owned? b. Who contributed the largest share to purchase the asset? c. Why did the joint owner transfer the asset or remove funds?

Document the case notes with information pertinent to the determination of whether the action constituted a transfer of assets.

ii. Transfer Executed by a Financially Responsible Relative (FRR) or Others

Effective 10/01/1993, transfers made 08/11/1993 or later by the institutionalized individual, the community spouse or legal representative including a court or administrative body at the request, direction or on behalf of the institutionalized individual or community spouse may result in a penalty for the institutionalized individual.