Section 441.89.3. Exceptions.

Notwithstanding rule 441—89.2(249F), exceptions for transfers that occur between July 1, 1993, and June 30, 1996, are in accordance with the rules during that time period. Notwithstanding rule 441—89.2(249F), the following exceptions apply to transfers that occur on or after July 1, 1996. The following transfers do not create a debt to the department:

        1.            Transfers to or for the sole benefit of the transferor’s spouse, including a transfer to a spouse by an institutionalized spouse pursuant to Section 1924(f)(1) of the federal Social Security Act.

        2.            Transfers to or for the sole benefit of the transferor’s child who is blind or disabled, as defined in Section 1614 of the federal Social Security Act.

        3.            Transfer of a dwelling, which serves as the transferor’s home as defined in 20 CFR Section 416.1212, as amended to August 23, 1994, to a child of the transferor under 21 years of age.

        4.            Transfer of a dwelling, which serves as the transferor’s home as defined in 20 CFR Section 416.1212, as amended to August 23, 1994, after the transferor is institutionalized, to either of the following:

        ●             A sibling of the transferor who has an equity interest in the dwelling and who was residing in the dwelling for a period of at least one year immediately prior to the date the transferor became institutionalized.

        ●             A child of the transferor who was residing in the dwelling for a period of at least two years immediately prior to the date the transferor became institutionalized and who provided care to the transferor which permitted the transferor to reside at the dwelling rather than in an institution or facility.

5. Transfers of less than $2,000. All transfers by the same transferor during the five-year period prior to the application for medical assistance by the transferor shall be aggregated. If a transferor transfers property to more than one transferee during the five-year period prior to application for medical assistance by the transferor, the $2,000 exemption shall be divided equally between the transferees for the five-year period prior to application for medical assistance.

        6.            Transfers that would, at the time of the transferor’s application for medical assistance, have been exempt from consideration as a resource if they had been retained by the transferor, pursuant to 42 U.S.C. Section 1382(b)(a).

        7.            Transfers to a trust established solely for the benefit of the transferor’s child who is blind or permanently and totally disabled as defined in Section 1614 of the federal Social Security Act.

        8.            Transfers to a trust established solely for the benefit of a person under 65 years of age who is disabled, as defined in Section 1614 of the federal Social Security Act.

        9.            Rescinded IAB 11/29/00, effective 1/3/01.