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Transfer policy applies to customers who are applying for or receiving long-term care services, including customers who receive SSI Cash or Freedom to Work.
Transferring ownership of an asset for less than current market value may result in a period of time where the customer cannot get long-term care services. This period is called the “transfer penalty period”.
This policy applies to all transfers made during the look-back period.
See Example Establishing the Look-Back Period.
A transfer that happened before the look-back period does not affect the customer’s eligibility unless a penalty period was established by an earlier application and has not expired. In this case, the penalty period applies to the current application.
See Example - Previous penalty period in effect at new application.
Any transfers that occurred during the look-back period or after the application was submitted must be reviewed to see if the customer received compensation for the full value of the asset. If the customer did not receive compensation for the full value of the asset, it is considered an “uncompensated transfer”. The uncompensated value is used to determine the length of any penalty period.
ALTCS eligibility is not stopped or denied due to an uncompensated transfer. If all other eligibility requirements are met, the customer will receive the limited ALTCS service package (MA302.2) during the penalty period.
Term |
Definition |
Transfer |
Giving legal ownership of an asset in whole or in part, to someone else. Some actions that cause a change in legal ownership include: · Changing the title or deed; · Selling or purchasing a resource; · Trading or exchanging one asset for another; · Making a loan; · Giving away a resource or income; · Assigning assets to another person or entity; and · Buying an annuity. After a transfer occurs, the asset no longer belongs to the former owner to the same degree that it did before the transfer. The former owner’s total assets have a different value, or have been converted from one type of asset to another. |
Assets |
A person’s income and resources. This includes income and resources the person is entitled to get, even if the person takes action to avoid receiving them. |
Assignment of Assets |
Designating or setting aside an asset for a specific purpose. An assignment may be revocable or irrevocable. · A revocable assignment of income or resources is not a transfer. Instead, the assets are considered "constructively received". See MA604B and MA703C for additional information about constructively received assets. · An irrevocable assignment of income or resources is a transfer. |
Compensation |
Money, real or personal property, food, shelter, or services received in exchange for a transferred asset. Compensation does not include either of the following: · Items or services with no cash value. For example, "love and consideration" is not compensation; or · Any part of a payment specifically identified as paying for interest. |
Current Market Value (CMV) |
Also known as “Fair Market Value”. For a resource, the actual dollar amount of the resource if sold on the open market at the time of the transfer. For income, the actual dollar amount of the income at the time it was transferred. See Determining the Uncompensated Value of a Transferred Stream of Income for additional information. |
Equity value |
The CMV of an asset less any outstanding loans, mortgages, or other legal encumbrances. |
Look-Back Period |
The 60-month period before the month the customer applies for ALTCS. The look-back period begins on the first day of the 60th month prior to the month of application. |
Uncompensated Value |
The difference between the equity value of an asset at the time it is transferred, and the amount of compensation that the customer received in exchange. The uncompensated value of a transfer may never be less than $0.00. |
When a countable income or resource has been transferred, documents need to be provided to prove:
· The date of the transfer. For transfers of real property, the date of transfer is the date the transfer document is signed and notarized, not the date the document is recorded;
· The person who owned the item both before and after the transfer;
· Any legal debts and liens against the transferred item at the time of the transfer;
· The CMV of the transferred item at the time of the transfer; and
· Any compensation received for the transfer.
NOTE For proof of a resource’s CMV see the specific policy for that type of resource in MA705.
Program |
Legal Authorities |
ALTCS FTW-ALTCS |
42 USC 1396p(c) 42 CFR 435.1005 ARS 36-2934(B) AAC R9-28-401 and 409 |