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West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 51 Chapter 24 Long Term Care

When the client or his spouse can demonstrate that he intended to dispose of the resource for FMV or for other valuable consideration, no penalty is applied. 24.8.2.B.6 Transfer Was Not to Qualify for Medicaid When a transfer of resources was exclusively for a purpose other than to qualify for Medicaid, no penalty is applied. Transfer Intent Example 1: Mrs. Rhododendron has a stroke and enters the nursing facility on October 15, 2016. Her daughter’s home was in foreclosure and the mother transferred $5,000 to her on September 19, 2016 to prevent foreclosure. The Worker verifies the situation with the foreclosure notice dated September 4, 2016 and the mother’s withdrawal and check to the daughter on September 19, 2016 for the exact amount of the foreclosure of $5,000. The Worker and Supervisor determine Mrs. Rhododendron did not transfer money to qualify for Medicaid. Transfer Intent Example 2: Mr. Geranium, a widowed man, has failing health and transfers $25,000 to each of his children before he enters the nursing facility. The children are not disabled. The transfer is assumed to be for the purpose of qualifying for Medicaid. 24.8.2.B.7 Denial Would Result in Undue Hardship If the Worker has determined the individual would be eligible for LTC services but is denied due to one of the following asset policies, an undue hardship may exist: • Excessive home equity; • Transfer to a non-permissible trust; and/or, • A transfer of asset penalty. For undue hardship to exist, the denial must result in: NOTE: A transfer is assumed to be for the purpose of qualifying for LTC services. The burden is on the individual to prove otherwise. Documentation needs to be provided by the individual to support their reason for the transfer if it was not to qualify for Medicaid. The Worker and Supervisor can make this decision.