Probate & Trust Law Section Conference Manual ... - Minnesota CLE

less than the asset’s value on the date of the transfer. A transferee, or joint
transferee, of an asset received in a form other than cash may return the
value of the asset in cash if the return is made in an amount equal to the
value of the asset on the date of the transfer.
C. CURRENT HCPM GUIDELINES
Although the State Plan Amendment approved as TN 11-03 was approved
retroactive to January 1, 2011, 22 DHS chose not to implement the change until
December 1, 2011, for penalty periods imposed on or after that date. Because of
the importance of these new policies, the new provisions of HCPM § 19.40.35,
are reproduced in full, below:
HCPM
Chapter 19 - Assets
Effective: January 1, 2012
19.40.35 - Imposing a Transfer Penalty
Transfer Penalty Imposed due to a Transfer
Some transfer penalties are imposed because the client or the client’s spouse
transferred assets without receiving adequate compensation. Effective with any transfer
penalty imposed on or after December 1, 2011, a client can only end a transfer penalty in
these situations by receiving a full return of the transferred assets. Do not redetermine a
transfer penalty if assets are partially returned. A transfer penalty is imposed on the date
the agency calculates a transfer penalty and sends the client a notice regarding the penalty
period. (emphasis added)
Note: Assets, in this context, refers to both income and resources of the client or
the client’s spouse.
The requirement that a client receive a full return of the transferred assets in order
to end a transfer penalty applies after a transfer penalty is imposed; continue to follow the
standard steps in processing a transfer when determining if a client is subject to a transfer
penalty. Take into account any compensation the client received when determining the
amount of an uncompensated transfer prior to imposing a transfer penalty. 23
Example:
22 Since the State Plan Amendment approved as TN 11-03 was approved retroactive to January
1, 2011, the request for approval must have been submitted by the Pawlenty Administration
sometime prior to January 2011.
23 In the hearing on the Temporary Restraining Order requested in the Ellis case, described in
more detail below, the attorney for the Commissioner of Human Services clarified that MA
would take into account, and give credit for, all compensation (return of value) received by the
applicant or spouse prior to actual imposition of a penalty period.
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