Virginia Administrative Code › Title 12 - HEALTH › Agency 30 - DEPARTMENT OF MEDICAL ASSISTANCE SERVICES › Chapter 110 - ELIGIBILITY AND APPEALS › Part III - Related More Liberal Methods of Treating Resources-Transfer of Assets › Section 12VAC30-110-700 - Transfer of assets

Current through Register Vol. 40, No. 24, July 15, 2024
A. Certain
				  term life insurance policies purchased after April 7, 1993. When making
				  eligibility determinations for institutional or community-based care to be paid
				  for by the department, the department shall consider as an uncompensated
				  transfer all resources that are used by an applicant to purchase any term life
				  insurance policy that does not have a benefit payable at death that will equal
				  or exceed twice the sum of all premiums paid for such policy if the policy was
				  purchased within 30 months prior to the date of application for medical
				  assistance unless the policy was purchased to fund a funeral in accordance with
				  § 54.1-2820 of the Code of Virginia.
The purpose of the policy shall be determined by reviewing
					 the policy. If the policy language specifies that the death benefits shall be
					 used to purchase burial space items or funeral services then the purchase of
					 such policy shall not be considered a transfer of assets; however, the
					 Department of Medical Assistance Services shall initiate action to recover from
					 the beneficiary the amount of any benefit paid under the provisions of the
					 policy which exceed the actual expense of the funeral and burial of the
					 insured.
B. Inter vivos
				  trusts.
1. Assets of inter vivos trusts
				  available. When determining eligibility for medical assistance, the assets of
				  any inter vivos trust, both principal and interest, shall be considered
				  available to the grantor who is an applicant for or recipient of medical
				  assistance without regard to any provision of the trust which provides directly
				  or indirectly for the suspension, termination, or diversion of the principal,
				  income or other beneficial interest of the grantor if he should apply for
				  medical assistance or if he should require medical, hospital or nursing care or
				  long-term custodial, nursing or medical care. The amount of principal or
				  interest to be considered available shall be that amount of income or principal
				  of the trust to which the grantor is entitled if no application for assistance
				  had been made except for trusts created prior to August 11, 1993.
2. Trusts created prior to August 11, 1993.
				  Up to $25,000 of the corpus of an inter vivos trust created prior to August 11,
				  1993, shall not be a countable asset. If the grantor created more than one such
				  trust, the corpora of the trusts shall be added together. If the sum of the
				  corpora is less than $25,000, no assets from any of the trusts shall be
				  considered available. If the sum of the corpora exceeds $25,000, then the total
				  amount of the corpora less $25,000 is a countable asset. In determining the
				  amount of each trust to exempt, the $25,000 exemption shall be prorated among
				  the trusts.
In applying this section, if, prior to August 11, 1993, the
					 grantor has made transfers for an uncompensated value as defined in §
					 20-88.02 of the Code of Virginia within 30 months of applying for Medicaid and
					 no payments were ordered pursuant to subsection D of that section, then no
					 $25,000 exemption shall be granted.