3.3 Divestment

MDV 13/106538 (01/04/2010)
No cure when son used distribution from IRR to pay for parent’s care

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.1 Availability, 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, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Brian C. Schneider

DHA Case No. MDV 13/106538 (Wis. Div. Hearings and Appeals Jan. 4, 2010) (DHS) ↓ Download PDF A transfer to an irrevocable trust is generally a divestment if the trust cannot make payments back to (or for the benefit of) the grantor under any circumstances, but a divestment can be cured if the full value […] Read more

MDV 211510 (04/05/2024)
Termination of life estate at first death of spouses was not a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.3 Life estate—termination and payment of less than FMV, ALJ John P. Tedesco

DHA Case No. MDV 211510 (Wis. Div. of Hearings and Appeals April 5, 2024) (DHS) ↓ Download PDF DHA Case No. MGE 211214 (Wis. Div. of Hearings and Appeals April 5, 2024) (DHS) ↓ Download PDF Generally, the transfer of a life estate without receiving fair market value in return is a divestment. In this […] Read more

MDV 213193 (06/17/2024)
Life insurance was available asset when co. issued check within 30 days

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.1 Availability, 3.2.6.05 Life insurance, 3.3 Divestment, 3.3.01 Penalty period, ALJ Beth Whitaker

DHA Case No. MDV 213193 (Wis. Div. of Hearings and Appeals June 17, 2024) (DHS) ↓ Download PDF The surrender value of life insurance is generally available if the owner has the right to surrender it and the proceeds will be made available in less than 30 days. In this case, the petitioner divested and […] Read more

MDV 210958 (03/13/2024)
Zillow estimate could not be used to determine FMV

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.7 Real property, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.7 Effective date, ALJ Debra Bursinger

DHA Case No. MDV 210958 (Wis. Div. of Hearings and Appeals March 13, 2024) (DHS) ↓ Download PDF The fair market value of real estate may be established by assessment, statements from realtors, or a comparative market analysis. In this case, the agency relied solely on the fair market value estimate it found on Zillow […] Read more

MGE 209474 (01/05/2024)
Pooled trust MADA delayed application processing, divestment penalty

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.5 Trusts, 3.2.5.5 Pooled trusts, 3.3 Divestment, 3.3.01 Penalty period, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, ALJ Debra Bursinger

DHA Case No. MGE 209474 (Wis. Div. of Hearings and Appeals January 5, 2024) (DHS) ↓ Download PDF To exempt funds in a pooled trust, an applicant for Medicaid must have a formal disability determination. In this case, the petitioner applied for community waivers Medicaid after establishing a pooled trust sub-account. Because he did not […] Read more

MDV 50/105459 (09/01/2009)
Money transferred to daughter not divestment, but counted as available

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.1 Availability, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, ALJ Michael D. O’Brien

DHA Case No. MDV 50/105459 (Wis. Div. of Hearings and Appeals September 1, 2009) (DHS) ↓ Download PDF A divestment does not make a person ineligible for Medicaid if the resource was transferred exclusively for some purpose other than to become eligible. In this case, the petitioner’s daughter transferred $7,064.85 to herself so she could […] Read more

MDV 40/68902 (05/18/2005)
Homestead transferred to caretaker child of recipient in assisted living

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.12 Homestead property, 3.3.12.4 Transfer of homestead to caretaker child, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, ALJ Joseph A. Nowick

DHA Case No. MDV 40/68902 (Wis. Div. of Hearings and Appeals May 18, 2005) (DHS) ↓ Download PDF An institutionalized person may transfer homestead property to their child if the child lived with them and provided care keeping them out of an institution for at least two years immediately before becoming institutionalized. In this case, […] Read more

MDV 40/54978 (12/05/2002)
Deed giving homestead to caretaker child identified property as “not homestead”

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.12 Homestead property, 3.3.12.4 Transfer of homestead to caretaker child, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Peter D. Kafkas

DHA Case No. MDV 40/54978 (Wis. Div. of Hearings and Appeals December 5, 2002) (DHS) ↓ Download PDF An institutionalized person may transfer homestead property to their child if the child lived with them and provided care keeping them out of an institution for at least two years immediately before becoming institutionalized. In this case, […] Read more

MDV 49/44514 (06/19/2000)
Caretaker child living in mobile home on homestead did not “reside in” the home

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.12 Homestead property, 3.3.12.4 Transfer of homestead to caretaker child, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth P. Adler

DHA Case No. MDV 49/44514 (Wis. Div. of Hearings and Appeals June 19, 2000) (DHS) ↓ Download PDF To qualify for the caretaker child exception to divestment, the child must “reside in” the institutionalized person’s home in addition to taking care of them. In this case, the petitioner’s son lived in his own, separately-taxed mobile […] Read more

MDV 209022 (08/25/2023)
Missed deadlines scuttled a valid appeal of divestment, a cautionary tale

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.11 Undue hardship, 4 Program Administration, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Beth Whitaker

DHA Case No. MDV 209022 (Wis. Div. of Hearings and Appeals August 25, 2023) (DHS) ↓ Download PDF An appeal of a divestment penalty must be filed within 45 days; an appeal of a hardship waiver denial must also be filed within 45 days. In this case, the agency imposed a divestment penalty when the […] Read more

MDV 209376 (10/27/2023)
Agency conceded multiple errors, ALJ remands for it to finish its determinations

Tags: 1 Applications and Renewals, 1.1 Applications, 1.1.5 Begin dates, 3 Financial Eligibility, 3.2 Assets, 3.2.8 Business property, 3.3 Divestment, 3.3.04 Transfers of exempt income or assets, 3.3.12 Homestead property, 3.3.25 Life estates, ALJ Peter McCombs

DHA Case No. MDV 209376 (Wis. Div. of Hearings and Appeals October 27, 2023) (DHS) ↓ Download PDF Institutional MA eligibility can be backdated up to three months prior to the the month of application. In this case, the petitioner requested an asset assessment in January 2023 but didn’t apply until May. ALJ Peter McCombs […] Read more

MDV 210996 (12/27/2023)
Divestments during COVID PHE start penalty at first renewal, a cautionary tale

Tags: 1 Applications and Renewals, 1.2 Renewals, 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Beth Whitaker

DHA Case No. MDV 210996 (Wis. Div. of Hearings and Appeals December 27, 2023) (DHS) ↓ Download PDF The penalty period for divestments reported or discovered during the COVID-19 does not begin until “the member’s next renewal that occurs after April 1, 2023.” In this case, the petitioner sold her house in January 2023 and […] Read more

FCP 203910 (03/23/2023)
Caregiver agreement not notarized, was divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.07 Payments to relatives, 3.3.07.2 For services, 4 Program Administration, 4.5 Undue hardship, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, 5.05.7 Effective date, ALJ Kelly Cochrane

DHA Case No. FCP 203910 (Wis. Div. of Hearings and Appeals March 23, 2023) (DHS) ↓ Download PDF If payments to a relative for services exceed 10% of the maximum CSAS, the MEH requires a notarized agreement. In this case, the petitioner had an agreement to pay her daughters $500 per month, but it was […] Read more

MDV 196288 (12/04/2019)
Selling land for promissory notes was not divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.18 Promissory notes – loans – land contracts – mortgages, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, ALJ Brian C. Schneider

DHA Case No. MDV 196288 (Wis. Div. of Hearings and Appeals December 4, 2019) (DHS) ↓ Download PDF Aland contract must have a term within the lender’s life expectancy, provide for equal payments, and not allow cancellation on the death of the lender to avoid being considered a divestment. In this case, the county argued […] Read more

MDV 193440 (06/11/2019)
Land contract was divestment, but penalty could not be imposed due to agency error

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.18 Promissory notes – loans – land contracts – mortgages, 3.3.19 Making an asset unavailable, 4 Program Administration, 4.4 Overpayments, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Brian C. Schneider

DHA Case No. MDV 193440 (Wis. Div. of Hearings and Appeals June 11, 2019) (DHS) ↓ Download PDF A land contract must have a term within the lender’s life expectancy, provide for equal payments, and not allow cancellation on the death of the lender to avoid being considered a divestment. If it does not meet […] Read more

Tag: 3.3 Divestment