Code of Maine Rules › 10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES › 144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL › Chapter 336 - TRANSFER OF ASSET PENALTY FOR STATE-FUNDED ASSISTANCE IN RESIDENTIAL CARE › Section 144-336-5 - FAIR MARKET VALUE

Current through 2024-29, July 17, 2024
Fair Market Value is an amount that can be expected to be
				  received for selling a similar article on the open market in the geographic
				  area involved.
A transfer for Fair Market Value incurs no penalty. Fair
				  Market Value may be received in cash by the individual.
The compensation received for the asset must be in a tangible
				  form with intrinsic value that is equivalent to or greater than the value of
				  the transferred asset. A transfer for love and consideration is not a transfer
				  for Fair Market Value.
Fair Market Value may be received by the individual in the
				  form of payment of the individual's past medical expenses and debts if
				  measurable and verified. Fair Market Value must be received by the individual
				  at or before the time of transfer and not delivered at a future date.
Fair Market Value may also be received in the form of past
				  support for basic necessities if such support is measurable and verified. A
				  reasonable value must be placed on the support provided and the specific time
				  period must be substantiated for which it was given.
Past support for basic necessities does not include any items
				  given as a gift. Additionally, past support for basic necessities does not
				  include goods or services provided by relatives, with the exception of
				  clothing, transportation or personal care provided by a relative pursuant to a
				  legally written enforceable agreement whereby the individual agreed to transfer
				  the asset in payment for clothes, transportation or personal care once those
				  services have been received.
Fair Market Value may be received by the individual in the
				  form of services (other than those qualifying as a basic necessity) provided by
				  a relative, but only if:
I. the
				transfer takes place at the time the service is rendered;
II. the services are performed subject to a
				written agreement that has been executed prior to the delivery of services,
				specifying the type, frequency and duration of the services being provided to
				the individual and the amount of consideration (money or property) being
				received by the relative;
III. at
				the time of the receipt of the services, the applicant is not residing in a
				Residential Care Facility, Cost Reimbursed Boarding Home, Adult Family Care
				Home, or nursing facility;
IV. at
				the time of the receipt of the services, the applicant's physician has
				determined that the services are necessary to prevent the transfer of the
				applicant to residential care or nursing facility care, and has so stated in a
				written, signed document; and
V.
				the services do not include the mere providing of companionship.
Whenever an individual has transferred assets within the look
				  back period in exchange for services provided by a relative, the Department
				  will review the written contract between the individual and the provider /
				  relative at the time of individual's application. If the amount paid for the
				  services is above the Fair Market Value of the services at the time the
				  services were delivered, then the individual will be considered to have
				  transferred the assets for less than Fair Market Value. If in question, Fair
				  Market Value of the services may be determined by consultation with an area
				  business which provides such services.