Disqualifying Transfers 510-05-80

Definitions 510-05-80-05

(Revised 1/1/2026 Release 26.1)

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(N.D.A.C. Sections 75-02-02.1-33.1 and 75-02-02.1-33.2)

For purposes of this section:

1. Assets or income an individual disposes of means assets or income to which the individual is entitled, or would be entitled if action, or inaction, causes the individual  to not receive the asset or income. Examples of actions which would cause assets or income not to be received are:

1. Irrevocably waiving pension income;
2. Waiving an inheritance; or
3. Not accepting or accessing injury settlements.

2. Fair Market value means:

1. In the case of a liquid asset that is not subject to reasonable dispute concerning its value, such as cash, bank deposits, stocks, and commodities, one hundred percent of apparent fair market value;
2. In the case of real or personal property that is subject to reasonable dispute concerning its value 75% of estimated fair market value and;

3. In the case of income, one hundred percent of apparent fair market value.

3. "Relative" means child, stepchild, grandchild, parent, stepparent, grandparent, aunt, uncle, niece, nephew, brother, sister, stepbrother, stepsister, half-brother, half-sister, first cousin, or in-law.

4. "Uncompensated value" means the difference between fair market value as of the date of transfer and the value of any consideration received.

When the party that receives the transferred property also assumes any outstanding loan(s) on the property, the amount of the outstanding loan(s) is consideration received.

Example: Mr. Green owns property with an estimated value of $80,000. He has a mortgage for $50,000 on the property. If Mr. Green sells the property for $30,000 and the purchaser assumes the mortgage, Mr. Green is actually receiving $80,000 in compensation, and there is no disqualifying transfer. If the purchaser does not assume the mortgage, the uncompensated value is $50,000 (the difference between $30,000 and the estimated market value of $80,000).

5. "Community spouse" has the same meaning as in 05-65-10, Definitions for Spousal Impoverishment.
6. "Home and Community Based Services spouse" has the same meaning as in 05-65-10, Definitions for Spousal Impoverishment.  
7. "Institutionalized spouse" has the same meaning as in 05-65-10, Definitions for Spousal Impoverishment.
8. The average cost of nursing facility care is: