WAC 182-527-2750 Delay of recovery for undue hardship

The department delays recovery under this section when the department determines that recovery would cause an undue hardship for an heir. This delay is limited to the period during which the undue hardship exists. The undue hardship must exist at the time of the client's death in order to be considered for a delay of recovery.

1. Undue hardship exists when:

   1. The estate subject to adjustment or recovery is the sole income-producing asset of one or more heirs and income is limited;

   2. Recovery would deprive an heir of shelter and the heir lacks the financial means to obtain and maintain alternative shelter; or

   3. The client is survived by a domestic partner.

2. Undue hardship does not exist when:

   1. The adjustment or recovery of the decedent's cost of assistance would merely cause the heir inconvenience or restrict his or her lifestyle; or

   2. The undue hardship was created as a result of estate planning methods by which the heir or deceased client divested, transferred or otherwise encumbered assets, in whole or in part, to avoid recovery from the estate.

3. When a delay in recovery is not granted, the department provides notice to the person who requested the delay of recovery. The department's notice includes information on how to request an administrative hearing to contest the department's denial.

4. When a delay of recovery is granted under subsection (1)(a) or (1)(b) of this section, the department may revoke the delay of recovery if the heir(s):

   1. Fails to supply timely information and resource declaration when requested by the department;

   2. Sells, transfers, or encumbers title to the property;

   3. Fails to reside full-time on the premises;

   4. Fails to pay property taxes and utilities when due;

   5. Fails to identify the state of Washington as the primary payee on the property insurance policies. The person granted the delay of recovery must provide the department with documentation of the coverage status on an annual basis.

   6. Have a change in circumstances under subsection (1) of this section for which the delay of recovery due to undue hardship was granted; or

   7. Dies.

5. When a delay of recovery is granted due to undue hardship, the department has the option to:

   1. Apply a lien; and/or

   2. Accept a payment plan.

6. A person may request an administrative hearing to contest the department's denial of delay of recovery due to undue hardship when that person suffered a loss because the delay was not granted.

7. A request for an administrative hearing under this section must:

   1. Be in writing;

   2. State the basis for contesting the department's denial of the request for a delay of recovery due to an undue hardship;

   3. Include a copy of the department's denial;

   4. Be signed by the requester and include the requester's address and telephone number; and

   5. Be served, as described in WAC 388-527-2870, on the office of financial recovery (OFR) within twenty-eight calendar days of the date that the department sent the decision denying the request for a delay of recovery.

8. Upon receiving a request for an administrative hearing, the department notifies persons known to have title to the property and other assets of the time and place of the administrative hearing.

9. An adjudicative proceeding held under this section is governed by chapters 34.05 RCW and 388-02 WAC and this section. If a provision in this section conflicts with a provision in chapter 388-02 WAC, the provision in this section governs.