G Transfer of Home Property to Specific People

 

 

Revised 08/07/2020

Policy

The transfer of home property to any of the people listed below does not affect eligibility for long term care services:

·        The customer's spouse;

·        The customer’s child or stepchild, when the child is under 21 years of age;

·        The customer’s child or stepchild, of any age, who lived in the customer's home for at least two years immediately before the date the customer became institutionalized, AND provided care to the customer that allowed the customer to live at home rather than in a medical institution;

·        The customer’s sibling who has an equity interest (MA704C) in the home and who lived in the home with the customer for at least one year immediately before the date the customer became institutionalized; or

·        The customer’s child or stepchild, of any age, who has been determined to have a qualifying disability, including blindness (see MA504 and MA509).

NOTE      For the transfer policy in this section, a qualifying disability does NOT include a determination of severe impairment.

 

Definitions

Term

Definition

Actuarially sound

For transfer policy, means that the full value of the transfer should be received by the person within his or her expected life span

Institutionalized

For purposes of the transfer of a home, a customer is considered institutionalized when the customer:

·        Is living in a nursing facility;

·        Is in a medical treatment facility and Medicaid payments are made based on a level of care provided in a nursing facility; or

·        Is eligible for home or community based services through the Arizona Long Term Care System (ALTCS) program.

Severe impairment

A medical condition that significantly limits a person’s physical or mental abilities to do basic work activities. (see MA509)

 

Proof

Use the following table to determine what kind of proof is needed to prove that the home property was transferred to a specific individual and will not affect eligibility:

When the home property was transferred to…

Then proof is needed of….

The customer’s spouse

The customer’s legal marriage to the spouse. See MA520 for a more detailed list of proof.

The customer’s child or step child with a qualifying disability

OR

To a trust for the sole benefit of the customer’s child with a qualifying disability

The child’s relationship to the customer. Proof includes birth certificates, court documents and church records.

When the child is a step-child, proof is needed of:

·        The child’s relationship to the customer’s spouse; AND

·        The customer's marriage to the child’s parent

NOTE          The death of the child’s parent does not terminate the step-parent’s relationship

The child’s qualifying disability. Proof includes:

·        Electronic confirmation from Social Security;

·        Award letters showing the child receives Social Security Disability benefits or SSI-Cash based on disability;

·        PAS approval; or

·        SMI determination

·        In addition to the items above, when the transfer was made to a trust, a copy of the trust document, showing that:The trust is for the sole benefit of the customer’s child;

·        The trust clearly sets out the conditions of the transfer and who can benefit from it; AND

NOTE      Unless it is a Special Treatment Trust, the trust includes a spending plan for the benefit of the child that is actuarially sound.

A son or daughter who lived with and provided care to the customer that allowed the customer to live at home rather than in a medical institution

The person's relationship to the customer. Proof includes birth certificates, court documents and church records.

The period of time the person lived with the customer, before the customer was institutionalized.

The type and amount of care provided by the person that allowed the customer to live at home instead of in an institution.

NOTE          Proof must include the customer’s medical condition and need for care during the period of time that the care was provided.

A sibling who lived in the home and has equity interest in the home

The sibling's relationship to the customer. Proof includes birth certificates, court documents and church records.

The period of time the sibling lived with the customer, before the customer was institutionalized

When and how the sibling acquired equity interest in the property. Proof of equity interest in the property includes any the following:

·        Receipts

·        Cancelled checks; and

·        Other documents showing the siblings investment in the property.

 

Legal Authority

Programs

Legal Authority

ALTCS

42 USC 1396p(c)(2)(A), (B) and (C)

42 USC 1396p(c)(3)

AAC R9-28-401 and 409