To be eligible for CYFD Medicaid, the applicant/ recipient
must not have transferred resources within two years prior to application for
the purpose of qualifying for CYFD medicaid. An applicant/recipient under
eighteen years of age cannot transfer property, except through a guardian.
Normally, such applicants/recipients do not own property in their own right. If
facts indicate the existences of a trust, inheritance, or prior gift, the CYFD
representative completing the application must determine if a transfer has
taken place within the two year period.
A. Transfers made for the purpose of
qualifying for medicaid: A transfer is considered to have been made for the
purpose of becoming eligible if:
(1) the
transfer was made without a reasonable return; and
(2) the applicant/recipient had no reasonable
plan for support at the time of the transfer other than receiving CYFD
medicaid.
(3) if the value of the
applicant/recipient's equity in the transferred property plus all other
countable resources is less than $1,000, the transfer is not considered to be
for the purpose of becoming eligible.
B. Definitions:
(1) "Transfer" includes the sale, transfer by
gift, or conveyance by deed or any other method of transferring the title to
the property. The transfer can be for either the title to real property or any
other interest or rights in real property, such as mineral rights.
(2) "Reasonable return" is considered to have
been received when the applicant/recipient received compensation in cash or in
kind equals the value of the property at the time of transfer. This
determination is based on the applicant/recipient's equity interest in the
property at the time of transfer.
C. Attempts to obtain reasonable return: If
the property was transferred for the purpose of becoming eligible but the
applicant/ recipient subsequently makes and continues to make efforts to obtain
a reasonable return or regain the title, the applicant/recipient is not
ineligible because of the improper transfer of resources.
D. Period of ineligibility: If a transfer
without fair return was made for the purpose of becoming eligible for CYFD
Medicaid, the applicant/recipient is ineligible for a period of 24 months
beginning with the month the resources were transferred.
