PENALTY EXCEPTIONS

The asset transferred is the individual's home, and title to the home is transferred to:

• The spouse of the individual;

• A child of the individual who is under age 21;

• A child who is blind or permanently and totally disabled as defined by a State program established under title XVI in States eligible to participate in such programs or blind or disabled as defined by the SSI program in all other States;

• The sibling of the individual who has an equity interest in the home and who has been residing in the home for a period of at least one year immediately before the date the individual becomes institutionalized; or

• A son or daughter of the individual (other than a child as described above) who was residing in the home for at least two years immediately before the date the individual becomes institutionalized, and who (as determined by the State) provided care to the individual which permitted the individual to reside at home, rather than in an institution or facility.

In addition to the above, a penalty for transferring an asset for less than fair market value is not assessed if a satisfactory showing is made to the State that:

• The individual intended to dispose of the assets either at fair market value or for other valuable consideration;

• The assets were transferred exclusively for a purpose other than to qualify for Medicaid;

• All of the assets transferred for less than fair market value have been returned to the individual; or

• Imposition of a penalty would work an undue hardship.