Finally, a one-stop resource for long term care planning. Let our umbrella of guidance shelter you from the long term care cost storm. Sheltering customers since 2001.
Thinking about transferring assets or income without compensating the potential ALTCS member? How will this affect ALTCS eligibility?
What is a transfer?
All items of value (assets or income) that are sold, traded, transferred, or given away. An uncompensated transfer means that the client did not receive full compensation for the item. Example: ALTCS potential member gives her daughter $13,000.00. The daughter didn't give her mom anything of value for that $13,000.00; therefore, the entire $13,000.00 will be considered an uncompensated transfer subject to a penalty period.
The look-back period is 3-5 years depending on when the transfer took place.
How are transfers evaluated?
Partial Month Penalties for Transfers Made on or After October 1, 2007
For uncompensated transfers that are made on or after October 1, 2007, a partial month penalty period is assessed based on the carry-over amount of the transfer. In addition, a prorated share of cost is determined based on the number of days in the partial month that the customer is eligible for full ALTCS benefits.
An uncompensated transfer is one in which an ALTCS applicant or member has sold, traded, transferred, or given away any property or income for which they did not receive full value.For example:a person gave away their savings bond and it was worth $500.00.The person that they gave it to did not give them any cash or assets in trade for that item so the full $500.00 would be considered “uncompensated.”
To determine if there is a carry-over, ALTCS divides the total uncompensated transfer amount by the average private-pay rate in the State of Arizona.The whole number is used to determine the actual full number of months of the penalty period and the fraction of the number is used to determine the carry-over and thus the pro rata share for the partial month and share of cost.
What does this mean to you?Well, if you have uncompensated transfers that result in whole plus fractions of months, your eligibility for full long term care benefits (those are the benefits that pay for the long term care bills), willbe affected.A person may be eligible only a few days out of the month.For example, if a person has a .25 carry-over for a transfer penalty period, the person would be ineligible for full long term care until the 8th of the month.This means the applicant will have to privately pay for their long term care bills for the first seven days.ALTCS will begin picking up their long term care costs on day 8.
As this has serious implications for those working on ALTCS planning, it will be very important to seek information from knowledgeable resources about appropriate ALTCS planning.
ALTCSPlanning.net has been providing ALTCS Planning Services since 2001.Our staff have a combined 48+ years experience dealing with the ALTCS program and transfers relating to ALTCS eligibility. We can help you evaluate whether or not your transfer will affect your eligibility for the ALTCS program.
ALTCS Planning.net is not affiliated with AHCCCS / ALTCS / VA.
If the information within our website was helpful to you "like" us on Facebook.
The information on this website is provided "as is" for general information purposes only. The content of this website may not be comprehensive, up-to-date, or applicable in all jursdictions. The content may not reflect the views of Montgomery & Associates, Inc. (DBA: ALTCS Planning.net) and Montgomery & Associates, Inc. (DBA: ALTCS Planning.net) makes no warranty of any kind, whether express or implied, with respect to any information provided on this website. Montgomery & Associates, Inc. (DBA: ALTCS Planning.net) assumes no liability for any errors or omissions in the content on this website and the information provided is not to be construed as legal advice. The information is intended to provide a general, factual overview of legal documents and planning options available. For legal matters you should always seek counsel of a qualified attorney licensed in your jurisdiction. Use of any information on this website is at your own risk.
**IMPORTANT NOTICE**
Our CLDP, Carol Aragon-Montgomery, prepares legal documents.OUR CLDP IS NOT AN ATTORNEY AT LAW AND IS NOT EMPLOYED BY ATTORNEYS AT LAW AND CANNOT GIVE LEGAL ADVICE.Your communications with our CLDP are kept CONFIDENTIAL by our CLDP, but since our CLDP is not an attorney at law, such communications are NOT PRIVILEGED (i.e., immune from Subpoena). Our CLDP can give you general factual information pertaining to legal rights, procedures, or options available to you in a legal matter when you are not represented by an attorney.Our CLDP cannot give you specific legal advice, opinions, or recommendations about your legal rights, remedies, defenses, options, or strategies. Please note that the Long Term Care Planning Services are of a financial planning nature and are not specific "legal" advice. Prices subject to change without notice.
