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Effective: December 1, 2008 |
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19.40.20ar4 - Transfer Penalty Exceptions (Archive) |
Archived: March 1, 2009 |
Some uncompensated transfers meet an exception, which means there is no penalty even though the transfers were uncompensated. This policy is applied differently for different programs.
General Assistance Medical Care (GAMC).
There are no transfer provisions for MinnesotaCare or GAMC-Hospital Only (GHO).
All uncompensated transfers within the lookback period result in penalties. There are no exceptions.
The following uncompensated transfers are exempt from penalty.
1. All transfers made by both the client and the client’s spouse with a combined total in a given month that is less than or equal to:
n $200 on or after July 1, 2002 if either of the following are met:
m The client requested payment of LTC services before September 12, 2006, and the transfer was made before that date.
m The client requested payment of LTC services on or after September 12, 2006, and the transfer was made before February 8, 2006.
Example:
Gorette applies for MA, including payment of LTC services, on September 24, 2006. She reports two transfers for which she did not receive adequate compensation: $150 in January 2006 and $175 in March 2006.
Action:
The January transfer meets the $200 transfer exception because the transfer date was before February 8, 2006. Evaluate the March transfer for a transfer penalty because the transfer date is after February 8, 2006, and Gorette applied after September 12, 2006.
n $500 before July 1, 2002.
Note: This rule does not apply and a penalty must be calculated if the client is in a transfer penalty period when the transfer is made.
2. The transferred assets are excluded assets other than a homestead. See MA Homestead Transfers.
3. There is convincing evidence of intent to receive fair market value.
4. There is convincing evidence to show the purpose of the transfer was exclusively for a reason other than to obtain or maintain MA for the client. See Transfers Made for Purposes Other Than to Qualify for MA.
5. Assets are transferred to the client's spouse or to a person for the sole benefit of the client's spouse.
6. Assets are transferred to the client or the client's spouse's child of any age of the client if the child is blind or permanently and totally disabled. The child must have a verified blindness or disability determination.
7. Assets are transferred into a trust established for the sole benefit of a child (of any age) of a client or the client’s spouse, if the child has a blindness or disability determination from SSA or SMRT.
8. Assets are transferred into a trust established for the sole benefit of any disabled person who is disabled according to SSA or SMRT criteria and who is under age 65.
Note: Transfer of assets into an irrevocable trust created on or after July 1, 2005, becomes revocable if the client requests MA payment of LTC/EW services and, therefore, is counted as an available asset. Do not calculate a transfer penalty when the trust is an available asset. See Trusts Established On or After August 11, 1993.
Transfer of a homestead is exempt from penalty when the transfer is made to:
l A spouse.
l A child under age 21 of the client or the client's spouse.
l A child (of any age) of the client or the client's spouse if the child is blind or permanently and totally disabled. The child must have a verified blindness or disability determination.
l A child (of any age) of the client or the client's spouse, when both of the following occur:
n The child lived in the home for at least two years before the client entered a LTCF or began receiving services through a home and community-based waiver program.
n Provided verifiable care that allowed the client to remain at home rather than enter a facility. A physician's statement of needed care is required.
l A sibling of the client or the client's spouse, when that sibling meets both of the following:
n Has equity interest in the home.
n Lived in the home at least one year immediately before the client entered a LTCF or began receiving services through a home and community-based waiver program.
When the transfer of a homestead is exempt from penalty, it may be transferred while occupied or while vacant. It does not have to be the primary residence of the person receiving the transferred homestead. See Homestead Real Property for policy on when a homestead can be excluded as an asset.
Example:
Mordecai has resided in a LTCF for 12 months. He has no community spouse and his home is vacant. His daughter Lydia provides a physician’s certification that she lived with Mordecai and provided care to enable him to remain at home for three years before he entered the LTCF.
Action:
Mordecai may transfer the home to Lydia without penalty.