Section 240.820  Asset Transfers

a)         The following transactions are considered transfers of assets:

1)         when an applicant/client buys, sells or gives away real or personal property; or

2)         if the applicant/client changes the way real or personal property is held.

b)         Transfers of assets which are exempt at the time of transfer do not affect eligibility.

c)         Transfers of non-exempt assets completed within 36 months from the date of application for the Community Care Program shall be considered in determining eligibility.  If a fair market value was not received, the value of the transferred asset shall be considered toward non-exempt assets and any excess amount shall be considered available to meet service costs unless it is proven that the applicant/client did not transfer the property to qualify for or increase the need for the Community Care Program.

1)         If real property was transferred, fair market value is to be determined by use of statements from reputable realtors or other community members recognized as knowledgeable of property value (e.g., bankers, tax assessors, auctioneers).

2)         If personal property was transferred, fair market value is to be determined by use of a statement from an institution having knowledge of the property at the time of the transfer, or from an individual who has specific knowledge of the transfer and/or the value of the asset at the time of the transfer.

3)         Factors to be considered when determining whether or not a transfer of property was made to qualify for or increase the need for the Community Care Program include but are not limited to:

A)        the applicant's/client's physical and mental condition at the time of transfer;

B)        the applicant's/client's financial situation at the time of transfer;

C)        the applicant's/client's need for services at the time of transfer;

D)        changes in the applicant's/client's living arrangements at the time of transfer; and

E)         how soon after the transfer the applicant/client applied for services.

d)         If after consideration of these factors the applicant/client is ineligible, the period of ineligibility begins at the date of application for applicants and the date of termination for clients.  The period of ineligibility lasts from the initial date for as long as the asset would meet the cost of Community Care Program (CCP) services if it were available to the applicant/client, but in no case shall it last longer than 36 months from the date of transfer.

e)         An applicant/client determined ineligible under subsection (d) above may become eligible if the following occurs:

1)         the property is reconveyed to the applicant/client; or

2)         an adequate consideration is paid to the applicant/client.

f)          It shall be the responsibility of an applicant/client to report all property transfers to the Case Coordination Unit (CCU) within 5 days from the date of the transaction.

g)         If an unreported transfer of property was made by an applicant/client within 36 months prior to the date of application or was made after the filing of the application but before Community Care Program (CCP) services were authorized, and services to which the individual was not entitled were received as a result of the failure to report the transfer, services shall be terminated.

h)         Involuntary transfers do not affect eligibility.

i)          When the property transfer was made to obtain support or care, and the terms of the agreement are being met, only those needs not included in the agreement may be met through the Community Care Program.

j)          Transfers because of separation, divorce or other settlement shall not affect eligibility if they are Court ordered; or, if there is no Court order, and the applicant/client and his/her spouse divide the property in half.

k)         Transfers from an individual bank account to a joint bank account do not affect eligibility if the applicant/client retains access to the money and the money continues to be used for the applicant's/client's needs.

l)          Income tax refunds are available assets.  If the refund is based on a joint income tax return, one-half of the refund is to be considered as belonging to the applicant/client.

(Source:  Amended at 19 Ill. Reg. 16031, effective November 20, 1995)