3.3 Divestment

MDV 209022 (08/25/2023)
Missed deadlines scuttled a valid appeal of divestment, a cautionary tale

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.11 Undue hardship, 4 Program Administration, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Beth Whitaker

DHA Case No. MDV 209022 (Wis. Div. of Hearings and Appeals August 25, 2023) (DHS) ↓ Download PDF An appeal of a divestment penalty must be filed within 45 days; an appeal of a hardship waiver denial must also be filed within 45 days. In this case, the agency imposed a divestment penalty when the […] Read more

MDV 209376 (10/27/2023)
Agency conceded multiple errors, ALJ remands for it to finish its determinations

Tags: 1 Applications and Renewals, 1.1 Applications, 1.1.5 Begin dates, 3 Financial Eligibility, 3.2 Assets, 3.2.8 Business property, 3.3 Divestment, 3.3.04 Transfers of exempt income or assets, 3.3.12 Homestead property, 3.3.25 Life estates, ALJ Peter McCombs

DHA Case No. MDV 209376 (Wis. Div. of Hearings and Appeals October 27, 2023) (DHS) ↓ Download PDF Institutional MA eligibility can be backdated up to three months prior to the the month of application. In this case, the petitioner requested an asset assessment in January 2023 but didn’t apply until May. ALJ Peter McCombs […] Read more

MDV 210996 (12/27/2023)
Divestments during COVID PHE start penalty at first renewal, a cautionary tale

Tags: 1 Applications and Renewals, 1.2 Renewals, 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Beth Whitaker

DHA Case No. MDV 210996 (Wis. Div. of Hearings and Appeals December 27, 2023) (DHS) ↓ Download PDF The penalty period for divestments reported or discovered during the COVID-19 does not begin until “the member’s next renewal that occurs after April 1, 2023.” In this case, the petitioner sold her house in January 2023 and […] Read more

FCP 203910 (03/23/2023)
Caregiver agreement not notarized, was divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.07 Payments to relatives, 3.3.07.2 For services, 4 Program Administration, 4.5 Undue hardship, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, 5.05.7 Effective date, ALJ Kelly Cochrane

DHA Case No. FCP 203910 (Wis. Div. of Hearings and Appeals March 23, 2023) (DHS) ↓ Download PDF If payments to a relative for services exceed 10% of the maximum CSAS, the MEH requires a notarized agreement. In this case, the petitioner had an agreement to pay her daughters $500 per month, but it was […] Read more

MDV 196288 (12/04/2019)
Selling land for promissory notes was not divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.18 Promissory notes – loans – land contracts – mortgages, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, ALJ Brian C. Schneider

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

MDV 193440 (06/11/2019)
Land contract was divestment, but penalty could not be imposed due to agency error

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.18 Promissory notes – loans – land contracts – mortgages, 3.3.19 Making an asset unavailable, 4 Program Administration, 4.4 Overpayments, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Brian C. Schneider

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

MDV 208396 (06/29/2023)
Pattern of gifting established for holidays, birthdays

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.06.3 Pattern of gifting, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Jason M. Grace

DHA Case No. MDV 208396 (Wis. Div. of Hearings and Appeals June 29, 2023) (DHS) ↓ Download PDF Any transfer of resources for less than fair market value is generally a divestment, but there is an exception if the resource was transferred “exclusively for some other purpose than to become eligible for MA.” In this […] Read more

MDV 208757 (07/27/2023)
Undue hardship waiver filed late, not backdated

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 4 Program Administration, 4.5 Undue hardship, ALJ Beth Whitaker

DHA Case No. MDV 208757 (Wis. Div. of Hearings and Appeals July 27, 2023) (DHS) ↓ Download PDF To waive the entire divestment penalty, an undue hardship waiver request must be filed within 20 days of the undue hardship notice letter mailed by the agency. If filed later, the earliest effective date is the date […] Read more

MDV 207202 (02/23/2023)
Multifarious divestments by POA

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.07 Payments to relatives, 3.3.07.1 For room and board, 3.3.07.2 For services, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Brian C. Schneider

DHA Case No. MDV 207202 (Wis. Div. of Hearings and Appeals February 23, 2023) (DHS) ↓ Download PDF A transfer for less than fair market value is a divestment, and payments to relatives often also need a notarized contract or lease. In this case, the petitioner’s son and POA used the proceeds from selling her […] Read more

MRA 195793 (01/06/2020)
Example of divestment by death, 5-year look-forward

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.13 Transfer of assets to spouse; marital property agreements, 3.3.20 Refusal to claim, 3.3.22 Community spouse divestment, 3.3.22.1 Before 5 years, ALJ Peter McCombs

DHA Case No. MRA 195793 (Wis. Div. of Hearings and Appeals January 6, 2020) (DHS) ↓ Download PDF In general, it is a divestment if the community spouse transfers assets to anyone other than the institutionalized spouse in the first 5 years of Medicaid eligibility. It can also be a divestment if the institutionalized spouse […] Read more

MDV 198612 (06/24/2020)
No divestment for renting farm; divestment for family tuition payments, charitable gifts over 15%

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.06.3 Pattern of gifting, 3.3.07 Payments to relatives, 3.3.07.1 For room and board, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Jason M. Grace

DHA Case No. MDV 198612 (Wis. Div. of Hearings and Appeals June 24, 2020) (DHS) ↓ Download PDF Any transfer of resources for less than fair market value is generally a divestment, but there is an exception if the resource was transferred “exclusively for some other purpose than to become eligible for MA.” In this […] Read more

MDV 198638 (06/29/2020)
Divestment penalty not started, petitioner failed to reapply

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, ALJ Debra Bursinger

DHA Case No. MDV 198638 (Wis. Div. of Hearings and Appeals June 29, 2020) (DHS) ↓ Download PDF A divestment penalty for a Medicaid applicant begins on the date the person applies and is “otherwise eligible” but for the divestment; it begins for a member the first of the month after the member receives timely notice. In this case, […] Read more

FCP 177944 (12/13/2016)
Closing costs deducted from divestment amount

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, ALJ Michael D. O’Brien

DHA Case No. FCP 177944 (Wis. Div. of Hearings and Appeals December 13, 2016) (DHS) ↓ Download PDF It is a divestment when a life estate is terminated and the life estate holder is not paid her proportional share. In this case, the petitioner’s life estate was divested when she sold her home and her […] Read more

MDV 183502 (12/06/2017)
No divestment for paying realtor fee

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ John P. Tedesco

DHA Case No. MDV 183502 (Wis. Div. of Hearings and Appeals December 6, 2017) (DHS) ↓ Download PDF Adivestment occurs upon the transfer of a non-exempt resource for less than fair market value. In this simple case, the petitioner sold the home in which she had a life estate and paid a prorated portion of […] Read more

MDV 199054 (08/25/2020)
No divestment: home sold for less than assessed value, petitioner paid closing costs

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, ALJ Debra Bursinger

DHA Case No. MDV 199054 (Wis. Div. of Hearings and Appeals August 25, 2020) (DHS) ↓ Download PDF A divestment occurs upon the transfer of a non-exempt resource for less than fair market value. In this case, the petitioner sold the home in which she had a life estate for $3,200 less than the tax […] Read more

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