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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE TRANSFERS 11/18 CHAPTER G PAGE 12 Example 1: Valerie Payne transferred non-home real property valued at $185,000 to her sister. As compensation, her sister agreed to provide Ms. Payne with room and board in the sister's home for the rest of Ms. Payne's life. ISM development showed that her sister's total household expenses were $1,500 per month. The household consisted of 3 persons, including Ms. Payne who was age 53 at the time of the transfer. The CMV of the ISM was $6,000 per year ($1,500/3 = $500 per month X 12 months = $6,000). Then, $6,000 X 31.61 (average years of life remaining at age 50) = $189,660 compensation. In this case, Ms. Payne received CMV for the transferred resource. Example 2: Assume the same case facts as Example 1 except that Ms. Payne is 80 years old at the time of the transfer. As in Example 1 the ISM is worth $6,000 per year. At 80 years of age the life expectancy table indicates 7.16 years; multiplying 7.16 years times $6,000 results in compensation of $42,960. In this case there is uncompensated value of $142,040 ($185,000 minus $42,960). Therefore, Ms. Payne would be subject to a period of ineligibility for AG because she transferred the house for less than fair market value. 9.3.2.1. ISM Value Computation Use the following computation method to compute the CMV of ISM 1. Total monthly household operating expenses

2. Divide by number of household members ÷ ____ Result equals individual's pro rata share (Monthly CMV) = 3. Multiply monthly CMV by 12 months for yearly total (Yearly CMV) =____ 4. Multiply the yearly CMV by the number years it’s to be provided or if for life, by the individual’s remaining years of life = ____ Total ISM Value

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Page 15

Official source

DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE TRANSFERS 11/18 CHAPTER G PAGE 12 Example 1: Valerie Payne transferred non-home real property valued at $185,000 to her sister. As compensation, her sister agreed to provide Ms. Payne with room and board in the sister's home for the rest of Ms. Payne's life. ISM development showed that her sister's total household expenses were $1,500 per month. The household consisted of 3 persons, including Ms. Payne who was age 53 at the time of the transfer. The CMV of the ISM was $6,000 per year ($1,500/3 = $500 per month X 12 months = $6,000). Then, $6,000 X 31.61 (average years of life remaining at age 50) = $189,660 compensation. In this case, Ms. Payne received CMV for the transferred resource. Example 2: Assume the same case facts as Example 1 except that Ms. Payne is 80 years old at the time of the transfer. As in Example 1 the ISM is worth $6,000 per year. At 80 years of age the life expectancy table indicates 7.16 years; multiplying 7.16 years times $6,000 results in compensation of $42,960. In this case there is uncompensated value of $142,040 ($185,000 minus $42,960). Therefore, Ms. Payne would be subject to a period of ineligibility for AG because she transferred the house for less than fair market value. 9.3.2.1. ISM Value Computation Use the following computation method to compute the CMV of ISM 1. Total monthly household operating expenses

2. Divide by number of household members ÷ ____ Result equals individual's pro rata share (Monthly CMV) = 3. Multiply monthly CMV by 12 months for yearly total (Yearly CMV) =____ 4. Multiply the yearly CMV by the number years it’s to be provided or if for life, by the individual’s remaining years of life = ____ Total ISM Value