A. Determine the Uncompensated Value of the Transfer
1. List each non-allowable transfer occurring on or after the lookback date through the current date.
2. Determine the date of transfer.
3. Determine the uncompensated value of each transferred resource based on policy in SA-3200, Resources.
a. Establish the current market value of the transferred resource at the time of the transfer.
The value of certain transferred resources can be rebutted. If a resource's value has already been successfully rebutted as part of the application process, use the established rebutted value, or zero value if proven non-salable or no current market value.
b. Subtract any encumbrances from the current market value to establish the equity value of the resource.
c. Establish the amount or value received for the transferred resource.
d. Subtract from the equity value the amount received. This is the uncompensated value.
B. Determine the Sanction Period
1. The maximum length of each consecutive sanction period is 36 months.
2. To determine the sanction period for a single transfer:
a. Divide the total uncompensated value of the transfer by $2,000.
This is based on the current average private rate for cost of care in an adult care home and is subject to change. DSS will issue changes in the rate as appropriate.
b. Round this number down to the lowest whole number.
c. The result is the number of months in the sanction period.
Uncompensated Value ÷ $2,000 = Months of Sanction
d. Begin the sanction period with the month following the month in which the transfer occurs.
e. There is no sanction if the uncompensated value of the transfer is less than $2,000.
Example: Applicant transferred property valued at $12,500 on 12/12/02. The sanction period is 6 months, 1/03 – 6/03. ($12,500 ÷ $2,000 = 6.25 round down to 6)
3. When there are multiple transfers in the lookback period, determine when the uncompensated value of the transfers equals $2,000. Begin the sanction period with the month following the month in which the transfers equal $2,000.
a. Once the transfers equal $2,000, evaluate the transfers separately unless the sanction periods overlap.
b. If the sanction periods overlap, add the uncompensated value of all overlapping transfers in the lookback period and divide by $2,000.
c. Round this number down to the lowest whole number.
d. The result is the number of months of sanction.
e. Stop adding and end the sanction period with the first month in which:
(1) No transfer occurred, and
(2) No sanction applies to that month from an earlier transfer.
Example of Multiple Transfers That Do Not Overlap: Application made for SA on 12/10/03. Mr. Pitt transferred a non-homesite trailer valued at $8,000 on 11/5/02 and $10,000 in cash on 8/10/03.
Sanction period for trailer transfer = 12/02– 3/03 ($8,000 ÷ $2,000 = 4 mo).
Sanction period for cash transfer = 9/03–1/04 ($10,000 ÷ $2,000 = 5 mo).
These sanction periods do not overlap and are imposed separately. Mr. Pitt is ineligible until 2/04.
Example of Multiple Transfers That Do Overlap:
Application made for SA on 4/12/03. Ms. Burke transferred real property valued at $26,000 on 11/5/02, a boat valued at $2,800 on 12/5/02 and stock valued at $7,325 on 6/8/03.
Sanction period for property transfer is 12/02–12/03 ($26,000 ÷ $2,000 = 13 mo).
Sanction period for boat transfer is 1/03 ($2,800 ÷ $2,000 = 1 mo).
Sanction period for stock transfer is 7/03–9/03 ($7,325 ÷ $2,000 = 3 mo).
These sanction periods do overlap, so add the total of all transfers together.
$26,000 + $2,800 + $7,325 = 36,125 ÷ $2,000 = 18.063 round down to18 mo.
The sanction period is 12/02 – 5/04. Ms. Burke is ineligible until 6/04
4. If other transfers occur during an established sanction period, add the uncompensated value of those transfers to the total and divide the total by $2,000. Round down each total. This is the revised number of months in the sanction period. The beginning month of the sanction period does not change.
5. For transfers that occur after the sanction period has ended, begin a new sanction period with the month following the month the total transfers equals $2,000.
C. Sanction Period When An Individual Leaves the Facility
A sanction period runs continuously from the first month of the sanction period through the last month of the sanction period, regardless of whether the individual stays in the adult care home or is otherwise eligible for SA.
1. When transferred resources are returned to the a/r prior to application, do not apply a sanction.
2. When transferred resources are returned during the same month the transfer occurred, do not apply a sanction. Determine eligibility based on the value of resources on the first moment of the month.
3. When transferred resources are returned to the a/r after a sanction period has already been assigned, the sanction period continues until the month after the resources are returned. Beginning the month after the resource is returned; determine eligibility including the returned resources.
4. Resources are considered returned when:
a. The actual resource is transferred back to the a/r, or
b. The a/r receives fair market value as compensation for the resource after the transfer. Value may be received in cash or money spent on the a/r’s behalf. Examples of money spent on the a/r's behalf are: paying for cost of care, or purchasing a burial plot for a/r, or paying outstanding bills for the a/r. The cash or money spent on the a/r’s behalf does not have to come from the person to whom the resource was originally transferred.
c. Verify any money spent on the client's behalf is, in fact, paid. For example, the adult care home verifies the outstanding bill has been paid.
5. When only a portion of the transferred resource is returned or money spent on the recipient’s behalf, the sanction period can be modified. For example, when half the value of the resource is returned, the sanction period is reduced by one-half. You must still reverify resources to determine whether the a/r is eligible based on the resource limit.
E. Budgeting During Sanction Period
1. An individual who is sanctioned due to transfer of resources is totally ineligible for SA. Always evaluate for Medicaid. Because of differences in transfer policy, an individual who is ineligible for SA due to a transfer may be eligible for Medicaid.
2. Determining the Sanction When Both Spouses Are Recipients
a. If a married couple transfers jointly own resources, and both spouses are SA a/r’s, divide the sanction between them. Divide the total value of the transferred resources by the average cost of care; then divide by two to get the number of months in the sanction period for each spouse.
Example: Mr. and Mrs. Tyrrell are private pay residents in an assisted living facility. They make a non-allowable transfer of $40,000 in stocks to their church on August 10. In November the couple applies for SA. They meet the income requirements but each of them is subject to a 10 month sanction ($40,000 ÷ $2,000 = 20 months ÷ 2 = 10 months) beginning December.
Example: Mr. and Mrs. Macon transferred cash and stocks valued at $60,000 to their daughter on September 10. In January Mr. Macon suffers a stroke and enters a nursing home. Mrs. Macon is unable to live alone and enters an adult care home in February. They both apply for assistance with cost of care. Mrs. Macon is subject to a 15 month SA sanction beginning in October ($60,000 ÷ $2,000 = 30 months ÷ 2 = 15). Mr. Macon is subject to a 7 month Medicaid sanction beginning in September ($60,000 ÷ $4,200 = 14 months ÷ 2 = 7).
For questions or clarification on any of the policy contained in these manuals, please contact your local county office.