415.27 Undue Hardship SR 98-09, 02/98 (AAM-A)

The penalty period is not applied if the district office determines that denial of eligibility for institutional care would result in undue hardship, under the following conditions:

.  The asset was transferred by an agent or authorized representative and it can be demonstrated and documented that the individual lacked the mental capacity to comprehend the disqualifying nature of the act; and

. A written and signed statement by a licensed physician states that the individual was mentally incapacitated at the time of the transfer; or

. An order of findings from a probate court concerning the individual's competency is provided to the district office.