Purchase of note, loan, or mortgage.
(a)#
For purposes of sub. (2), the purchase by an individual or his or her spouse of a promissory note, loan, or mortgage after February 8, 2006, is a transfer of assets for less than fair market value unless all of the following apply with respect to the note, loan, or mortgage: 1. The repayment term is actuarially sound. 2. The payments are to be made in equal amounts during the term of the loan, with no deferral and no balloon payment. 3. Cancellation of the balance upon the death of the lender is prohibited.
(a)(1)#
The repayment term is actuarially sound.
(a)(2)#
The payments are to be made in equal amounts during the term of the loan, with no deferral and no balloon payment.
(a)(3)#
Cancellation of the balance upon the death of the lender is prohibited.
(am)#
Notwithstanding par. (a), for purposes of sub. (2), the purchase of or entering into a promissory note by an individual or his or her spouse on or after July 14, 2015, is a transfer of assets for less than fair market value unless all of the following apply: 1. The promissory note satisfies the requirements under par. (a) 1. to 3. 2. The promissory note is negotiable, assignable, and enforceable and does not contain any terms making it unmarketable.
(am)(1)#
The promissory note satisfies the requirements under par. (a) 1. to 3.
(am)(2)#
The promissory note is negotiable, assignable, and enforceable and does not contain any terms making it unmarketable.
(b)#
1. The value of a promissory note purchased before July 14, 2015, a loan, or a mortgage that does not satisfy the requirements under par. (a) 1. to 3. is the outstanding balance due on the date that the individual applies for medical assistance for nursing facility services or other long-term care services described in sub. (2). 2. The value of a promissory note purchased or entered into on or after July 14, 2015, that does not satisfy the requirements under par. (am) 1. and 2. is the outstanding balance due on the date that the individual applies for Medical Assistance for nursing facility services or other long-term care services described in sub. (2) or on the date that the individual’s eligibility for Medical Assistance for nursing facility services or other long-term care services described in sub. (2) is redetermined.
(b)(1)#
The value of a promissory note purchased before July 14, 2015, a loan, or a mortgage that does not satisfy the requirements under par. (a) 1. to 3. is the outstanding balance due on the date that the individual applies for medical assistance for nursing facility services or other long-term care services described in sub. (2).
(b)(2)#
The value of a promissory note purchased or entered into on or after July 14, 2015, that does not satisfy the requirements under par. (am) 1. and 2. is the outstanding balance due on the date that the individual applies for Medical Assistance for nursing facility services or other long-term care services described in sub. (2) or on the date that the individual’s eligibility for Medical Assistance for nursing facility services or other long-term care services described in sub. (2) is redetermined.