10- 144 C.M.R. ch. 336, § 5

Current through 2024-51, December 18, 2024

Section 144-336-5 - FAIR MARKET VALUE

Fair Market Value is an amount that can be expected to be received for selling a similar article on the open market in the geographic area involved.

A transfer for Fair Market Value incurs no penalty. Fair Market Value may be received in cash by the individual.

The compensation received for the asset must be in a tangible form with intrinsic value that is equivalent to or greater than the value of the transferred asset. A transfer for love and consideration is not a transfer for Fair Market Value.

Fair Market Value may be received by the individual in the form of payment of the individual's past medical expenses and debts if measurable and verified. Fair Market Value must be received by the individual at or before the time of transfer and not delivered at a future date.

Fair Market Value may also be received in the form of past support for basic necessities if such support is measurable and verified. A reasonable value must be placed on the support provided and the specific time period must be substantiated for which it was given.

Past support for basic necessities does not include any items given as a gift. Additionally, past support for basic necessities does not include goods or services provided by relatives, with the exception of clothing, transportation or personal care provided by a relative pursuant to a legally written enforceable agreement whereby the individual agreed to transfer the asset in payment for clothes, transportation or personal care once those services have been received.

Fair Market Value may be received by the individual in the form of services (other than those qualifying as a basic necessity) provided by a relative, but only if:

I. the transfer takes place at the time the service is rendered;

II. the services are performed subject to a written agreement that has been executed prior to the delivery of services, specifying the type, frequency and duration of the services being provided to the individual and the amount of consideration (money or property) being received by the relative;

III. at the time of the receipt of the services, the applicant is not residing in a Residential Care Facility, Cost Reimbursed Boarding Home, Adult Family Care Home, or nursing facility;

IV. at the time of the receipt of the services, the applicant's physician has determined that the services are necessary to prevent the transfer of the applicant to residential care or nursing facility care, and has so stated in a written, signed document; and

V. the services do not include the mere providing of companionship.

Whenever an individual has transferred assets within the look back period in exchange for services provided by a relative, the Department will review the written contract between the individual and the provider / relative at the time of individual's application. If the amount paid for the services is above the Fair Market Value of the services at the time the services were delivered, then the individual will be considered to have transferred the assets for less than Fair Market Value. If in question, Fair Market Value of the services may be determined by consultation with an area business which provides such services.

10- 144 C.M.R. ch. 336, § 5