3 Financial Eligibility

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 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

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

MGE 157892 (07/30/2014)
Over-verification of Wispact trust

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.5 Trusts, 3.2.5.5 Pooled trusts, 4 Program Administration, 4.1 Verification, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

DHA Case No. MGE 157892 (Wis. Div. of Hearings and Appeals July 30, 2014) (DHS) ↓ Download PDF County agencies may not over-verify; they may only require the verification needed to determine eligibility. In this case, the agency requested verification of an old family trust that had been depleted and the value of a Wispact […] Read more

MED 70/82111 (02/28/2007)
Petitioner over assets despite worker misidentifying an asset as life ins.

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.6 Liquid assets, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Brian C. Schneider

DHA Case No. MED 70/82111 (Wis. Div. of Hearings and Appeals February 28, 2007) (DHS) ↓ Download PDF The asset limit for Institutional MA is $2,000. In this case, the petitioner misidentified a savings account as life insurance on her application. The county worker, who was “simply scanning the application” at the time, advised the […] 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

MGE 198675 (08/05/2020)
Pending guardianship made assets unavailable

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.1 Availability, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kelly Cochrane

DHA Case No. MGE 198675 (Wis. Div. of Hearings and Appeals August 5, 2020) (DHS) ↓ Download PDF An asset is unavailable if a member lacks the ability to provide legal access, no one else can access the asset, and a process has been started to get legal access. In this case, the petitioner was […] Read more

MGE 213476 (07/08/2024)
In close case, agency reversed for numerous and inconsistent verification notices

Tags: 3 Financial Eligibility, 3.2 Assets, 3.2.6 Liquid assets, 3.2.6.05 Life insurance, 4 Program Administration, 4.1 Verification, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth D. Duren

DHA Case No. MGE 213476 (Wis. Div. of Hearings and Appeals July 8, 2024) (DHS) ↓ Download PDF The county agency must give individuals adequate written notice of verification requests. In this case, the requests “became numerous and internally inconsistent,” confusing the petitioner. ALJ Kenneth Duren concluded the agency failed to follow proper verification procedures […] Read more

Tag: 3 Financial Eligibility