divestment

DHA Case No. MDV 206205 (Wis. Div. of Hearings and Appeals December 2, 2022) (DHS) ↓ Download the original decision This case involved two issues. First, did a signed “irrevocable assignment” of $600,000 in assets make the petitioner’s assets unavailable, even though the assets were not actually delivered to the assignee until the next month? […] Read more

DHA Case No. MDV-45/86382 (Wis. Div. of Hearings and Appeals November 19, 2007) (DHS) ↓ Download the original decision In this case, the petitioner owned a home and a commercial property. She created life estates in both and the agency determined these transfers to be divestments. At the fair hearing, the petitioner argued that: (1) […] Read more

DHA Case No. MDV-37/88496 (Wis. Div. of Hearings and Appeals May 16, 2008) (DHS) ↓ Download the original decision 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 […] Read more

DHA Case No. MGE 117071 (Wis. Div. of Hearings and Appeals Jul. 26, 2011) (DHS) ↓ Download the original decision This case is one example of a marital property avoiding the potential divestment when a community spouse (1) dies, (2) leaves property to someone other than the Medicaid recipient, and (3) the recipient fails to […] Read more

DHA Case No. MDV 144813 (Wis. Div. of Hearings and Appeals Jan. 18, 2013) (DHS) ↓ Download the original decision The petitioner in this case spent $195,000 on life-insurance-funded burial contracts (LIFBCs) to become eligible for Medicaid. She bought 13 of them, all for her children and their spouses, at a cost of $15,000 each. […] Read more

DHA Case No. MDV 146580 (Wis. Div. of Hearings and Appeals April 23, 2013) (DHS) ↓ Download the original decision In this divestment case, the petitioner divested $85,000 to relatives. Those same relatives afterward paid about $89,000 for the petitioner’s nursing home care. Despite this, the agency found only a partial cure, arguing that only […] Read more

DHA Case No. MGE 170367 (Wis. Div. of Hearings and Appeals March 2, 2016) (DHS) ↓ Download the original decision This decision discussed two issues at some length. First, whether payments to the petitioner’s daughter were divestments; and second, whether the petitioner’s former home, now rented at fair market value, was countable. On the first […] Read more

DHA Case No. MDV 195771 (Wis. Div. Hearings and Appeals January 9, 2020) (DHS) ↓ Download the original decision In this case, the petitioner’s son bought her multi-family residential property, which had also been her home. A bank evaluation estimated the property’s fair market value at $225,000, and the tax assessment bill estimated it at […] Read more

DHA Case No. MED 67/53178 (Wis. Div. Hearings and Appeals Feb. 28, 2003) (DHS) ↓ Download the original decision In this case, a Medicaid recipient failed to report a divestment that occurred after her initial application was approved and benefits had started. The ALJ held that, despite the failure to report, the overpayment of benefits […] Read more

DHA Case No. MDV-36/46674 (Wis. Div. Hearings and Appeals Nov. 21, 2000) (DHS) ↓ Download the original decision When a person, or another acting on the person’s behalf, acts to transfer property such as a life estate without receiving fair market value in return, it is a divestment. But what if the transfer happens automatically, […] Read more

DHA Case No. MDV 172290 (Wis. Div. Hearings and Appeals June 3, 2016) (DHS) ↓ Download the original decision A divestment can only be cured by returning the entire value of the resource divested. But what if there have been multiple resources divested? Must all cumulative divestments be returned, or can you cure one divestment at a […] Read more

DHA Case No. MDV 197185 (Wis. Div. Hearings and Appeals Mar. 2, 2020) (DHS) ↓ Download the original decision The petitioner’s husband bought an annuity with a term beyond his life expectancy, which is usually a divestment. The ALJ agreed with the argument, however, that the annuity was bought without the intent to qualify for […] Read more

DHA Case No. MDV 155403 (Wis. Div. Hearings and Appeals Apr. 30, 2014) (DHS) ↓ Download the original decision This decision finds that the exception to divestment for transferring the residence to a caretaker child does not apply when the applicant resides in an assisted living facility for even a short period of time before being approved […] Read more

DHA Case No. MDV 45/86382 (Wis. Div. Hearings and Appeals Nov. 19, 2007) (DHS) ↓ Download the original decision This decision finds that transferring a remainder interest in the residence to an adult caretaker daughter was not a divestment. The petitioner met the requirements for the exception to divestment in the Medicaid Eligibility Handbook. ALJ […] Read more