After the asset is sold, the client is to repay HFS for any benefits issued during the exemption period. Determine the repayment amount as follows:
- Determine the net proceeds of the sale. Net is the sale price less any encumbrances (i.e. mortgage) and sales expense.
- Determine the available balance. Subtract the difference between the asset limit and the client's other nonexempt assets from the net proceeds.
- The client is to repay the lesser of:
- the available balance, or
- the amount of cash and/or medical benefits provided during the exemption.
If the property is sold or transferred for less than the current market value use the net proceeds as the current market value less any sales cost and encumbrances.
If a cash client does not repay HFS after the sale, report an overpayment for each month of the exemption period.