3.3 Divestment

MDV 214223 (11/27/2024)
Old irr. trust divestment imposed after renewal, benefits not continued pending appeal

Tags: 1 Applications and Renewals, 1.2 Renewals, 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.05 Ownership returned; cure, 3.3.15 Trusts, 3.3.15.4 Irrevocable trusts—created during or after look back, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.4 Life estate—divestment by remainder person, 4 Program Administration, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kelly Cochrane

DHA Case No. MDV 214223 (Wis. Div. Hearings and Appeals Nov. 27, 2024) (DHS) ↓ Download PDF A divestment penalty is generally imposed when an applicant reports a divestment and would be otherwise eligible. In this case, the petitioner originally applied in 2020 after creating an irrevocable trust, but no divestment penalty was imposed because […] Read more

MDV 214942 (11/20/2024)
Undue hardship waiver and divestment appeal deadlines missed, a cautionary tale

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.11 Undue hardship, 4 Program Administration, 4.5 Undue hardship, 4.7 Notices & fair hearings, ALJ Nicole Bjork

DHA Case No. MDV 214942 (Wis. Div. Hearings and Appeals Nov. 20, 2024) (DHS) ↓ Download PDF The deadline to file an appeal of a denied Medicaid application is 45 days from the notice. If a separate undue harship waiver is requested, the petitioner has 20 days from the request to provide any additional proof […] Read more

MDV 214870 (11/19/2024)
$275,000 lost to scam was not a divestment, enrollment backdated

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.10 Intent to sell for FMV, 3.3.11 Undue hardship, 4 Program Administration, 4.5 Undue hardship, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.7 Effective date, ALJ Nicole Bjork

DHA Case No. MGE 214870 (Wis. Div. Hearings and Appeals Nov. 19, 2024) (DHS) ↓ Download PDF One exception to the usual divestment rule is if the individual intended to dispose of the resource at fair market value. In this case, the petitioner’s husband had “invested” $275,000 in an online scam, for which the county […] Read more

MDV 214370 (10/22/2024)
Purchase and transfer of exempt vehicle, reimbursements not divestments

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.04 Transfers of exempt income or assets, 3.3.07 Payments to relatives, 3.3.07.2 For services, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nicole Bjork

DHA Case No. MDV 214370 (Wis. Div. Hearings and Appeals Oct. 22, 2024) (DHS) ↓ Download PDF The transfer of an exempt asset (except a homestead) is not a divestment. In this case, the petitioner bought a car—though she could not drive herself—that her son used to transport her to medical appointments. About seven months […] Read more

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

Tag: 3.3 Divestment