Subsections (2) and (3) do not apply to transfers of assets if any of the following applies: 1.
(1)#
The assets are exempt under 42 USC 1396p (c) (2) (A), (B), or (C). To make a satisfactory showing to the state under 42 USC 1396p (c) (2) (C) and adjust the ineligibility period under sub. (3), the individual shall demonstrate that all of the assets transferred for less than fair market value, or cash equal to the value of the assets transferred for less than fair market, have been returned to him or her.
(2)#
The department determines under the process under par. (b) that application of this section would work an undue hardship.