No penalty may be assessed where resources are transferred directly to a disabled child. A nursing home resident transferred approximately $24,000 to a disabled child. DFCS imposed a transfer penalty because the funds were transferred directly to the child instead of to a trust for the child. The caseworker’s decision was reversed because 42 U.S.C. 1396p(c)(2)(B)(iii) includes and exception to the transfer penalty rules where resources “were transferred to, or to a trust … established solely for the benefit of, the individual’s child…

OSAH-Floyd-Kennedy-1-2009.pdf (January 26, 2009).