DHA Case No. MDV 13/50679 (Wis. Div. Hearings and Appeals Dec. 20, 2001) (DHS) ↓ Download PDF A divestment is a transfer of resources for less than fair market value. In this case, the petitioner’s wife transferred her property worth $67,000 to her sons in exchange for a private annuity. The annuity had a principal […] Read more
Category: Fair Hearing Decisions
DHA Case No. MDV 30/35213 (Wis. Div. Hearings and Appeals Dec. 17, 1998) (DHS) ↓ Download PDF To avoid being considered a divestment, an irrevocable annuity must include substantially equal monthly payments and no balloon payments. In this case, the petitioner transferred $103,255 to his two sons in return for a “private annuity” where his […] Read more
DHA Case No. MDV 191431 (Wis. Div. Hearings and Appeals Feb. 12, 2019) (DHS) ↓ Download PDF The cash value of life insurance is not counted if the total face value of all policies does not exceed $1,500. In this case, the petitioner owned two life insurance policies: one with a face value of $1,000 […] Read more
DHA Case No. MGE 180617 (Wis. Div. Hearings and Appeals Jun. 12, 2017) (DHS) ↓ Download PDF The cash surrender value of life insurance policies must generally be counted as a resource. In this case, the petitioner had a policy labeled “Funeral Plan” with a cash surrender value of $3,390.75. ALJ Mayumi Ishii concluded the […] Read more
DHA Case No. FCP 159228 (Wis. Div. Hearings and Appeals Mar. 12, 2015) (DHS) ↓ Download PDF The cash value of life insurance is not counted if the total face value of all policies does not exceed $1,500. In this case, the petitioner owned a policy with an initial face value of $1,000 and dividend […] Read more
MDV 187317 (07/02/2018)
Life estate holder did not divest by paying share of mortgage, closing costs
DHA Case No. MDV 187317 (Wis. Div. Hearings and Appeals Jul. 2, 2018) (DHS) ↓ Download PDF Aperson who terminates her life interest in a property without receiving the value of the life estate has divested. In this case, the petitioner reserved her life estate before the look-back period but also signed a deferred loan […] Read more
DHA Case No. MDV 139111 (Wis. Div. Hearings and Appeals May 4, 2012) (DHS) ↓ Download PDF A person who terminates her life interest in a property without receiving the value of the life estate has divested. In this case, the petitioner had executed an agreement that allowed her children to terminate her life estate […] Read more
DHA Case No. MDV 135429 (Wis. Div. Hearings and Appeals Nov. 9, 2011) (DHS) ↓ Download PDF It is generally a divestment if a life estate holder is not paid fair market value when the property is sold. In this case, the petitioner and her family sold her property through a real estate lawyer, who […] Read more
DHA Case No. MDV 47/87892 (Wis. Div. Hearings and Appeals Jan. 7, 2008) (DHS) ↓ Download PDF The transfer of a life estate without receiving fair market value in return is a divestment. In this case, the petitioner had transferred her property to her son but retained a right to occupy her property that terminated […] Read more
DHA Case No. MDV 38/87937 (Wis. Div. of Hearings and Appeals Mar. 26, 2008) (DHS) ↓ Download PDF The holder of a life estate must generally make reasonable and necessary repairs, and payments for those repairs are not divestments. In this case, the petitioner owned a life estate and paid for insulation, window repairs, light […] Read more
DHA Case No. MDV 67/60174 (Wis. Div. Hearings and Appeals Feb. 3, 2004) (DHS) ↓ Download PDF A divestment is a transfer of assets for less than fair market value. In this case, the petitioner had a life estate in her home. The life estate was created before the look-back period and the petitioner did […] Read more
DHA Case No. MDV 40/39925 (Wis. Div. Hearings and Appeals Jul. 20, 1999) (DHS) ↓ Download PDF When an individual transfers real estate but retains a life estate, the value of the life estate must be considered in determining the divested amount. In this case, the petitioner transferred her home with a fair market value […] Read more
DHA Case No. MDV 40/18587 (Wis. Div. of Hearings and Appeals Dec. 16, 1997) (DHS) ↓ Download PDF In general, a transfer for fair market value is not a divestment. In this case, the petitioner spent $52,074 on repairs to his home, in which he had retained a life estate, after he was institutionalized. The […] Read more
DHA Case No. MDV 171354 (Wis. Div. Hearings and Appeals Mar. 28, 2016) (DHS) ↓ Download PDF Payments to relatives for care and services are not considered divestments if the services directly benefited the institutionalized person, compensation was reasonable, and, if the total exceeds 10% of the Community Spouse Asset Share, there is a preexisting […] Read more
DHA Case No. MDV 156359 (Wis. Div. Hearings and Appeals May 9, 2014) (DHS) ↓ Download PDF Payments to relatives for care and services are not considered divestments if the services directly benefited the institutionalized person, compensation was reasonable, and, if the total exceeds 10% of the Community Spouse Asset Share, there is a preexisting […] Read more