I-6210 Policy Implementation Dates

Revision 09-4; Effective December 1, 2009

For applications or program transfer requests filed before Oct. 1, 2006, or for case actions before Oct. 1, 2006, regardless of the date of purchase of a promissory note, loan or mortgage, follow policy for promissory notes, loans and property agreements.

Do not consider the purchase of a promissory note, loan or mortgage as a transfer of assets, unless the transaction of the promissory note, loan or mortgage is considered a transfer of assets for less than fair market value (FMV).

For applications or program transfer requests filed on or after Oct. 1, 2006, or for case actions on or after Oct. 1, 2006, with a purchase of a promissory note, loan or mortgage before April 1, 2006, follow policy outlined in Section F-4150, Promissory Notes, Loans and Property Agreements. Do not consider the purchase of a promissory note, loan or mortgage as a transfer of assets, unless the transaction of the promissory note, loan or mortgage is considered a transfer of assets for less than FMV.

For applications or program transfer requests filed on or after Oct. 1, 2006, or for case actions on or after Oct. 1, 2006, with a purchase of a promissory note, loan or mortgage on or after April 1, 2006, consider the purchase of these on or after April 1, 2006, as a potential transfer of assets.

 

I-6220 Post-DRA Transfer of Assets Policy

Revision 09-4; Effective December 1, 2009

When an individual purchases a promissory note, loan or mortgage on or after April 1, 2006, the potential for a transfer of assets occurs. A purchase of a promissory note, loan or mortgage on or after April 1, 2006, is a transfer unless all of the following conditions are met:

• The repayment term must be actuarially sound.
• Payments must be made in equal amounts during the term of the loan with no deferral of payments and no balloon payments.
• The promissory note, loan or mortgage must prohibit the cancellation of the balance upon the death of the lender.

If a promissory note, loan or mortgage does not satisfy these three requirements, the countable value considered for transfer of assets is the outstanding balance due as of the date of the individual's application for Medicaid or, for an existing Medicaid recipient, the program transfer request date.

To determine if actuarially sound, use life expectancy tables by accessing the online actuarial publication from the Social Security Administration’s Period Life Table.

If a promissory note, loan or mortgage is not a transfer, consider Medicaid resource eligibility and transfer of assets policy for persons purchasing a promissory note, loan or mortgage. Section F-4150, Promissory Notes, Loans and Property Agreements, also indicates that if the purchase of the promissory note, loan or mortgage was for less than the FMV, a transfer of assets transaction occurs.