Hawaii Administrative Rules
Title 17 - DEPARTMENT OF HUMAN SERVICES
Department of Human Services
Chapter 1725.1 - ASSETS FOR MAGI-EXCEPTED INDIVIDUALS
Subchapter 7 - TREATMENT OF ASSETS FOR INDIVIDUALS REQUESTING COVERAGE OF LONG-TERM CARE SERVICES
Section 17-1725.1-53 - Treatment of promissory notes, loans and mortgages

Universal Citation: HI Admin Rules 17-1725.1-53

Current through August, 2024

(a) The assets used by an individual who requires coverage of long-term care services or their community spouse, to secure a promissory note, loan or mortgage on or after February 8, 2006, shall not be considered transferred if all of the following conditions apply to the promissory note, loan or mortgage:

(1) The repayment term is actuarially sound;

(2) It is irrevocable and cannot be sold;

(3) Equal payments are made throughout the term of the contract with no deferral or balloon payments; and

(4) The balance cannot be cancelled upon the death of the institutionalized individual or the community spouse.

(b) If the provisions of subsection (a) are not met, the transferred amount is equal to the outstanding balance owed as of the date of the individual's request for coverage of long-term care services.

(c) The portion of the funds used to secure a promissory note, loan or mortgage prior to February 8, 2006, that is not actuarially sound and is payable beyond the life expectancy of the owner of the funds shall be considered transferred.

Disclaimer: These regulations may not be the most recent version. Hawaii may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.