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 144-336-7 - ESTABLISHING DATE AND VALUE OF TRANSFER

Current through 2024-29, July 17, 2024
The means of establishing the date and value of a transfer
				  will depend on the type of asset transferred, as detailed below.
I. Assets other than bank accounts. A
				transfer of assets occurs when:
A. title
				(ownership) or legal interest to property has passed from the individual to a
				third party. For example: Sole ownership of a home valued at $100,000 is
				transferred to another. The value of the transfer is $100,000.
B. the individual establishes a joint
				ownership, tenancy in common, joint tenancy or other similar arrangement, such
				as adding a name to stocks, bonds, real property. In addition to legally
				transferring part ownership, the individual has taken action which reduced or
				eliminated their ownership or control of the remainder of the asset. The date
				of the transfer is the date that the joint ownership was established. The
				amount of the transfer is the total uncompensated value of the asset. For
				example: In 10/95 the individual establishes joint ownership of his or her home
				valued at $100,000. The value of the transfer is $100,000. The date of the
				transfer is 10/95.
C. the asset is
				converted from an accessible to an inaccessible asset. An example is when
				assets are placed in an irrevocable trust.
D. the individual takes action to refuse the
				receipt of assets.
E. unless
				otherwise exempt, when the individual sells real property in exchange for a
				promissory note, a transfer of assets must be assessed as follows:
1. if the individual sold property for less
				than Fair Market Value (see Section 5 ), a transfer of assets has occurred
				amounting to the difference between the sale price (the presumed value of the
				note) and the value of the property. To determine the sale price the presumed
				value of the note is used.
2. if
				the current value of the note is less than the presumed value, the difference
				between the two amounts is a transfer of assets.
The total amount of assets transferred due to (1) and (2)
				  above incurs a penalty, and the date of the transfer is the date the real
				  property is sold.
F. The purchase of a promissory note, loan or
				mortgage will be considered a transfer of assets (see Chapter 332, Part 15)
				unless the note, loan or mortgage:
1. has a
				repayment term that is actuarially sound (as determined in accordance with
				actuarial publications of the Social Security Administration, found online at:
http://www.ssa.gov/OACT/STATS/table4c6.html
)
				.
2. provides for payments to be
				made in equal amounts during the term of the loan, with no deferral and no
				balloon payments made; and
3.
				prohibits the cancellation of the balance upon death of the lender.
If the conditions in 1, 2, and 3 above are not met, the value
				  of the transfer is the outstanding balance due on the note, loan or mortgage as
				  of the date of the individual's application for State-Funded Assistance.