DHA Case No. MDV 66/71952 (Wis. Div. Hearings and Appeals Jan. 25, 2006) (DHS) ↓ Download PDF A divestment penalty may be “cured” by returning the divested resource, or its equivalent value, to the individual. In this case, the petitioner made multiple divestments during the lookback period totaling more than $200,000, but her son paid […] Read more
Tag: 3.3.18 Promissory notes – loans – land contracts – mortgages
DHA Case No. MDV 147776 (Wis. Div. Hearings and Appeals Jul. 12, 2013) (DHS) ↓ Download PDF The divestment penalty period for an Institutional MA applicant begins on the first date the person (1) is institutionalized, (2) has applied for Medicaid, and (3) is otherwise eligible for Medicaid. In this case, the petitioner applied on […] Read more
DHA Case No. MDV 23/81821 (Wis. Div. Hearings and Appeals Apr. 19, 2007) (DHS) ↓ Download PDF Fair market value is an estimate of the amount an asset will sell for in an arms-length transaction on the open market. In this case, the petitioner established an irrevocable trust and funded it with stocks, life insurance, […] Read more
DHA Case No. MDV 23/99503 (Wis. Div. Hearings and Appeals Jan. 26, 2009) (DHS) ↓ Download PDF Purchasing an annuity or promissory note with interest at less than the applicable federal rate is a divestment. In this case, the petitioner established a private annuity that met all other requirements but returned no interest. ALJ Kenneth […] Read more
DHA Case No. MDV 196288 (Wis. Div. of Hearings and Appeals December 4, 2019) (DHS) ↓ Download PDF Aland contract must have a term within the lender’s life expectancy, provide for equal payments, and not allow cancellation on the death of the lender to avoid being considered a divestment. In this case, the county argued […] Read more
DHA Case No. MDV 193440 (Wis. Div. of Hearings and Appeals June 11, 2019) (DHS) ↓ Download PDF A land contract must have a term within the lender’s life expectancy, provide for equal payments, and not allow cancellation on the death of the lender to avoid being considered a divestment. If it does not meet […] Read more
DHA Case No. MDV-37/88496 (Wis. Div. of Hearings and Appeals May 16, 2008) (DHS) ↓ Download PDF Promissory notes are commonly used to reduce countable resources for Medicaid eligibility. The rules require the note to have a repayment term within the applicant’s life expectancy, require equal payments with no balloon payment, prohibit cancellation of the […] Read more