Section 144-336-7 - ESTABLISHING DATE AND VALUE OF TRANSFERThe means of establishing the date and value of a transfer will depend on the type of asset transferred, as detailed below.
I. Assets other than bank accounts. A transfer of assets occurs when: A. title (ownership) or legal interest to property has passed from the individual to a third party. For example: Sole ownership of a home valued at $100,000 is transferred to another. The value of the transfer is $100,000.B. the individual establishes a joint ownership, tenancy in common, joint tenancy or other similar arrangement, such as adding a name to stocks, bonds, real property. In addition to legally transferring part ownership, the individual has taken action which reduced or eliminated their ownership or control of the remainder of the asset. The date of the transfer is the date that the joint ownership was established. The amount of the transfer is the total uncompensated value of the asset. For example: In 10/95 the individual establishes joint ownership of his or her home valued at $100,000. The value of the transfer is $100,000. The date of the transfer is 10/95.C. the asset is converted from an accessible to an inaccessible asset. An example is when assets are placed in an irrevocable trust.D. the individual takes action to refuse the receipt of assets.E. unless otherwise exempt, when the individual sells real property in exchange for a promissory note, a transfer of assets must be assessed as follows: 1. if the individual sold property for less than Fair Market Value (see Section 5), a transfer of assets has occurred amounting to the difference between the sale price (the presumed value of the note) and the value of the property. To determine the sale price the presumed value of the note is used.2. if the current value of the note is less than the presumed value, the difference between the two amounts is a transfer of assets. The total amount of assets transferred due to (1) and (2) above incurs a penalty, and the date of the transfer is the date the real property is sold.
F. The purchase of a promissory note, loan or mortgage will be considered a transfer of assets (see Chapter 332, Part 15) unless the note, loan or mortgage: 2. provides for payments to be made in equal amounts during the term of the loan, with no deferral and no balloon payments made; and3. prohibits the cancellation of the balance upon death of the lender. If the conditions in 1, 2, and 3 above are not met, the value of the transfer is the outstanding balance due on the note, loan or mortgage as of the date of the individual's application for State-Funded Assistance.
II. With bank accounts, a transfer of funds in an account is determined to take place when: A. funds deposited in a joint account and owned by the individual (see Chapter 332, Part 16, Section 2.5), are withdrawn by the other joint owner(s) from the account and used for other than the sole benefit of the individual; orB. another person's name is added to the individual's account, the money in the account is owned by the individual, and the intent of the individual in giving access is to convey ownership of those funds. Intent to convey ownership must be documented with a clearly written statement of intent to transfer the funds in the account to the joint owner. This statement must be:1. duly executed in the presence of the notary public; and2. signed by the individual at the time the account was made joint or within a reasonable period of time, usually one week but maybe longer due to circumstances beyond the control of the individual. Note: Evidence of an intent to transfer the funds in the account at the time that the name was added to the account will be rebutted by evidence that the individual continued to use the funds.
10-144 C.M.R. ch. 336, § 7