3.3 Divestment

MDV 177535 (02/09/2017)
100+ small gifts over four years not made with intent to qualify

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.06.1 Sufficient resources to cover 5 years of LTC, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Mayumi M. Ishii

DHA Case No. MDV 177535 (Wis. Div. Hearings and Appeals Feb. 9, 2017) (DHS) ↓ Download PDF When a Medicaid applicant can show that transfers to family members were made for a purpose other than to qualify for Medicaid, those transfers are not divestments. In this case, the petitioner made more than a hundred small […] Read more

MDV 190237 (12/13/2018)
Cash gifts to family one month before admission were divestments, but older gifts were not

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.06.1 Sufficient resources to cover 5 years of LTC, 3.3.06.3 Pattern of gifting, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nicole Bjork

DHA Case No. MDV 190237 (Wis. Div. Hearings and Appeals Dec. 13, 2018) (DHS) ↓ Download PDF Any transfer of resources for less than fair market value is generally a divestment, but there is an exception if the resource was transferred “exclusively for some other purpose than to become eligible for MA.” In this case, […] Read more

MDV 68/86274 (04/03/1995)
Real estate sold to son below FMV was divestment, no written agreement re his services

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.1 Availability, 3.2.6 Liquid assets, 3.2.6.12 Land contract, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.07.2 For services, 3.3.12 Homestead property, ALJ Kenneth P. Adler

DHA Case No. MDV 68/86274 (Wis. Div. Hearings and Appeals Apr. 3, 1995) (DHS) ↓ Download PDF It is generally a divestment to transfer an asset while receiving less than its fair market value in cash, services, or other forms of payment. In this case, the petitioner and her husband sold their homestead real estate […] Read more

MDV 13/10761 (02/19/1997)
Real estate sold to daughter below FMV was divestment, despite daughter’s payments of property expenses

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.07 Payments to relatives, 3.3.07.2 For services, 3.3.22 Community spouse divestment, 3.3.22.1 Before 5 years, ALJ Gary M. Wolkstein

DHA Case No. MDV 13/10761 (Wis. Div. Hearings and Appeals Feb. 19, 1997) (DHS) ↓ Download PDF It is generally a divestment to transfer an asset while receiving less than its fair market value in cash, services, or other forms of payment. In this case, the petitioner’s spouse sold their non-homestead real estate for $20,590 […] Read more

MDV 71/35825 (08/28/1998)
Home sold on market for less than tax assessed value not a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.12 Homestead property, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth D. Duren

DHA Case No. MDV 71/35825 (Wis. Div. Hearings and Appeals Aug. 28, 1998) (DHS) ↓ Download PDF It is generally a divestment to sell real estate for less than its fair market value. In this case, the petitioner sold his home on the market for $62,000, less than its tax-assessed value of $72,100. ALJ Kenneth […] Read more

MDV 40/44764 (2001)
Home sold on market for less than tax assessed value not a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.12 Homestead property, 4 Program Administration, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Joseph A. Nowick

DHA Case No. MDV 40/44764 (Wis. Div. Hearings and Appeals 2001) (DHS) ↓ Download PDF It is generally a divestment to sell real estate for less than its fair market value. In this case, the petitioner sold her duplex on the market for $72,500, less than its tax-assessed value of $95,900. ALJ Joseph Nowick concluded […] Read more

MDV 70/74428 (04/18/2006)
Real estate transfers by POA were made with intent to qualify

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.06.1 Sufficient resources to cover 5 years of LTC, 3.3.11 Undue hardship, 4 Program Administration, 4.5 Undue hardship, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Joseph A. Nowick

DHA Case No. MDV 70/74428 (Wis. Div. Hearings and Appeals Apr. 18, 2006) (DHS) ↓ Download PDF One exception to the usual divestment rule is if the transfer was not made for the purpose of becoming eligible for Medicaid. In this case, the petitioner’s POA transferred three pieces of real estate to family members before […] Read more

MDV 45/81748 (02/26/2007)
Refinancing appraisal established FMV, despite arguments re deteriorated condition

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.12 Homestead property, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth P. Adler

DHA Case No. MDV 45/81748 (Wis. Div. Hearings and Appeals Feb. 26, 2007) (DHS) ↓ Download PDF A certified appraisal generally considers a home’s condition when estimating its fair market value. In this case, the petitioner sold her home to her son for $80,000. About one year earlier, an appraisal done for refinancing estimated the […] Read more

MDV 23/81821 (04/19/2007)
FMV of farm not reduced by land contract

Tags: 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.12 Homestead property, 3.3.15 Trusts, 3.3.15.4 Irrevocable trusts—created during or after look back, 3.3.18 Promissory notes – loans – land contracts – mortgages, ALJ Gary M. Wolkstein

DHA Case No. MDV 23/81821 (Wis. Div. Hearings and Appeals Apr. 19, 2007) (DHS) ↓ Download PDF Fair market value is an estimate of the amount an asset will sell for in an arms-length transaction on the open market. In this case, the petitioner established an irrevocable trust and funded it with stocks, life insurance, […] Read more

MDV 13/84361 (05/21/2007)
Purchase of life estate in daughter’s home was for FMV

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.5 Purchase of life estate in another’s home, 4 Program Administration, 4.7 Notices & fair hearings, ALJ Kenneth D. Duren

DHA Case No. MDV 13/84361 (Wis. Div. Hearings and Appeals May 21, 2007) (DHS) ↓ Download PDF The purchase of a life estate in another person’s home is a divestment if the payment exceeds the value of the life estate. In this case, the petitioner was an elderly woman who moved into her daughter’s home. […] Read more

MDV 23/99503 (01/26/2009)
Annuity without interest was divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.17 Irrevocable annuities, 3.3.18 Promissory notes – loans – land contracts – mortgages, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth D. Duren

DHA Case No. MDV 23/99503 (Wis. Div. Hearings and Appeals Jan. 26, 2009) (DHS) ↓ Download PDF Purchasing an annuity or promissory note with interest at less than the applicable federal rate is a divestment. In this case, the petitioner established a private annuity that met all other requirements but returned no interest. ALJ Kenneth […] Read more

MDV 30/115352 (01/14/2011)
Transfer of adjacent, rented parcel was divestment

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.8 Business property, 3.3 Divestment, 3.3.04 Transfers of exempt income or assets, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.12 Homestead property, 3.3.12.4 Transfer of homestead to caretaker child, 3.3.24 Transfer of right to receive income, ALJ Catherine G. Demski

DHA Case No. MDV 30/115352 (Wis. Div. Hearings and Appeals Jan. 14, 2011) (DHS) ↓ Download PDF While it is generally a divestment to transfer resources for less than fair market value, there are exceptions for transferring homestead property to a caretaker child or transferring exempt business property. In this case, the petitioner owned two […] Read more

MDV 153086 (01/17/2014)
Appraisal established FMV over the county tax assessment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, ALJ Michael D. O’Brien

DHA Case No. MDV 153086 (Wis. Div. Hearings and Appeals Jan. 17, 2014) (DHS) ↓ Download PDF Generally, selling real estate for less than its fair market value is a divestment. In this case the petitioner sold her property (in which she had a life estate) for $55,000 after it was appraised at $74,000. The […] Read more

MDV 37/61571 (04/07/2004)
Real estate FMV determined by appraisal, not county assessment, but no discount for not using realtor

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Sean P. Maloney

DHA Case No. MDV 37/61571 (Wis. Div. Hearings and Appeals Apr. 7, 2004) (DHS) ↓ Download PDF Fair market value is an estimate of the amount an asset will sell for in an arms-length transaction on the open market. In this case, the petitioner sold three residential properties to his sons for their appraised value, […] Read more

MDV 45/55210 (2003)
Transfer from RLT to family trust at first spouse’s death was a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.13 Transfer of assets to spouse; marital property agreements, 3.3.15 Trusts, 3.3.15.3 Revocable trusts, 3.3.22 Community spouse divestment, 3.3.22.1 Before 5 years, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nancy J. Gagnon

DHA Case No. MDV 45/55210 (Wis. Div. Hearings and Appeals, 2003) (DHS) ↓ Download PDF It is generally a divestment for a community spouse to transfer assets for less than fair market value to anyone other than the institutionalized spouse. In this case, the community spouse’s interest in marital property was transferred by his revocable […] Read more

Tag: 3.3 Divestment