3.3 Divestment

MDV 187317 (07/02/2018)
Life estate holder did not divest by paying share of mortgage, closing costs

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.3 Life estate—termination and payment of less than FMV, ALJ Nicole Bjork

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

MDV 139111 (05/04/2012)
Termination of life estate was divestment, not done exclusively for purpose other than to qualify

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.25 Life estates, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

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

MDV 135429 (11/09/2011)
Life estate valued under IRC was less than FMV

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 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 Brian C. Schneider

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

MDV 47/87892 (01/07/2008)
Life estate ended upon admission to nursing home, was a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 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 Michael D. O’Brien

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

MDV 38/87937 (03/26/2008)
Life estate holder divested by paving a dirt driveway

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.15 Trusts, 3.3.15.1 Trusts for disabled individuals, 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 Joseph A. Nowick

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

MDV 67/60174 (02/03/2004)
Life estate not transferred automatically upon admission to nursing home

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Peter D. Kafkas

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

MDV 40/39925 (07/20/1999)
Life estate value must be considered in calculating divested amount

Tags: 3 Financial Eligibility, 3.3 Divestment, 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 Kenneth D. Duren

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

MDV 40/18587 (12/16/1997)
Life estate holder did not divest by paying for property repairs

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.07 Payments to relatives, 3.3.25 Life estates, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nancy J. Gagnon

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

MDV 171354 (03/28/2016)
Contract required for services but not room and board

Tags: 3 Financial Eligibility, 3.3 Divestment, 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 Mayumi M. Ishii

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

MDV 156359 (05/09/2014)
Contract required only if payments to an individual exceed 10% CSAS

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.07 Payments to relatives, 3.3.07.2 For services, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

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

MDV 138130 (06/27/2012)
Reimbursements, payments to POA agents not divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.07 Payments to relatives, 3.3.07.2 For services, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

DHA Case No. MDV 138130 (Wis. Div. Hearings and Appeals Jun. 27, 2012) (DHS) ↓ Download PDF Transfers for fair market value are not divestments. In this case, the petitioner was a 96-year-old woman living in northern Wisconsin who had named her daughter as her financial agent. After she was admitted to a nursing home, […] Read more

MDV 133314 (10/04/2011)
Personal services contract and cash Christmas gifts were divestments

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, 3.3.07 Payments to relatives, 3.3.07.2 For services, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, ALJ Sean P. Maloney

DHA Case No. MDV 133314 (Wis. Div. Hearings and Appeals Oct. 4, 2011) (DHS) ↓ Download PDF To pay relatives for services while avoiding divestment, a written and notarized agreement that exists at the time the services are provided is required if the total payment exceeds 10% of the community spouse asset share. In this […] Read more

MDV 132474 (08/24/2011)
Personal services contract that was not notarized was a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.07 Payments to relatives, 3.3.07.2 For services, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, ALJ Nancy J. Gagnon

DHA Case No. MDV 132474 (Wis. Div. Hearings and Appeals Aug. 24, 2011) (DHS) ↓ Download PDF To pay relatives for services while avoiding divestment, a written and notarized agreement that exists at the time the services are provided is required if the total payment exceeds 10% of the community spouse asset share. In this […] Read more

MDV 13/78679 (02/16/2007)
Up front lump sum payment for personal services contract was divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.07 Payments to relatives, 3.3.07.1 For room and board, 3.3.07.2 For services, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.2 Family Care Partnership, ALJ Kenneth D. Duren

DHA Case No. MDV 13/78679 (Wis. Div. Hearings and Appeals Feb. 16, 2007) (DHS) ↓ Download PDF If an institutionalized person is paying a relative for care and services, then the payment must not exceed reasonable compensation for the services provided. In this case, the petitioner paid a lump sum of $85,013.02 to her adult […] Read more

MDV 152549 (12/09/2013)
Payments to relatives for services were divestment, no notarized contract

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.07 Payments to relatives, 3.3.07.2 For services, ALJ Michael D. O’Brien

DHA Case No. MDV 152549 (Wis. Div. Hearings and Appeals Dec. 9, 2013) (DHS) ↓ Download PDF To pay relatives for services while avoiding divestment, a written and notarized agreement that exists at the time the services are provided is required if the total payment exceeds 10% of the community spouse asset share. In this […] Read more

Tag: 3.3 Divestment