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of $200 occurs because the cash value of the LIFBC exceeds the expenses of the pre-arrangement of the funeral. 17.2.7.21 Unregulated Gambling Losses Money lost by making personal bets with friends, relatives, or from other unregulated gambling is an unallowable divestment and results in a penalty period. 17.2.7.22 Voluntary Foreclosure or Repossession Voluntarily signing ownership of an asset over to the financial institution holding the loan rather than trying to sell the item is an unallowable divestment and results in a penalty period. This includes situations in which someone wants an alternative to foreclosure or repossession due to defaulting on the loan. Example 32 Quince cannot pay his mortgage on his lake house. He must either sell the lake house to pay the mortgage or sign the property over to the mortgage holder to avoid foreclosure. Quince feels the amount of money he would get to keep after selling the lake house is not worth the time it would take to get it ready to sell, so he signs it over to the bank. This is an unallowable divestment and results in a penalty period. 17.2.7.23 Homestead Property Homestead property, usually an exempt asset, is given special consideration in the Medicaid divestment policy. A divestment of homestead property is unallowable and results in a penalty period unless it meets the criteria under 17.2.6.8 TRANSFER OF HOMESTEAD PROPERTY. 17.2.7.24 Jointly Held Assets and Value of the Asset Is Transferred The transfer during the look back period or anytime thereafter of an asset owned by an institutionalized person in common with another person is an unallowable divestment and results in a penalty period if either: • The transfer reduces or eliminates the institutionalized person's ownership or control of the asset. • The transfer limits the institutionalized person's right to sell or otherwise dispose of the asset. Example 33 For many years Debra held a joint account with her daughter, Julie. On October 15, Julie withdraws $13,000 from it and purchases a certificate of deposit in her name. On December 3 of that year, Debra enters a nursing home and applies for Medicaid. The $13,000 withdrawal is an unallowable divestment and results in a penalty period. 17.2.7.25 Adding Someone as an Additional Owner of an Asset The addition of another person’s name to the ownership of an institutionalized person’s asset is an unallowable divestment and results in a penalty period if either: • The addition of another individual’s name limits the individual’s right to sell or otherwise dispose of the asset. • The addition of another individual’s name requires the other individual agree to the sale or the disposal of the asset, where no such agreement was necessary before. Example 34 John bought a piece of property with his nephew, Carl. Three months later John applied for a Community Waivers program. John explained that Carl refused to sell the property, making it unavailable and that it should not count as an asset. The purchase of the property was during the look