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Wisconsin Department of Health and Family Services Obsolete Medicaid Eligibility Handbook For the current MEH, see http://www.emhandbooks.wi.gov/meh-ebd/ For the current BC Plus Handbook, see http://www.emhandbooks.wi.gov/bcplus/ |
When an institutionalized person owns an asset in common with another person and when s/he or the other person or any person acting on their behalf transfers the asset during the lookback period or anytime thereafter, s/he may be penalized for divestment if the transfer:
Reduces or eliminates the institutionalized person's ownership or control of the asset, or
Limits the institutionalized person's right to sell or otherwise dispose of the asset.
"Holding an asset in common" means holding it through joint tenancy, tenancy in common, joint ownership, or partnership.
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Example 1: For many years Debra held a joint account with her daughter, Donna. On October 15, 1996, Donna withdraws $13,000 from it. On December 3, 1996, Debra enters a nursing home and applies for MA. The $13,000 withdrawal is a divestment. A penalty period must be calculated and imposed. |
If placing another individual’s name on the account, or asset actually limits the individual’s right to sell or otherwise dispose of the asset, such placement would constitute a transfer of assets. For example, the addition of another individual’s name requires that the other individual agree to the sale or the disposal of the asset, where no such agreement was necessary before.
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Example 2: John bought a piece of property with his nephew, Carl. Three months later John requested to participate in the community waivers program. John explained that his nephew, Carl, refused to sell the property and, therefore, it was unavailable and should not be counted as an asset. The IM worker agreed with John that the land wasn't available and wouldn't be counted as an asset. But, the purchase of the property and the nephew’s refusal to make it available (through liquidation) to meet John's needs was divestment. Therefore, John is subject to a penalty period starting from the 1st of the month in which the jointly owned property was purchased. |
When a person's name appears as co-owner of a jointly held asset, assume s/he is part owner of the property. However, you must inform him/her that s/he has a right to present evidence showing she is not an owner (4.5.3).
This page last updated in Release Number : 03-03
Release Date:09-22-03
Effective Date: 09/22/03