Testamentary devise to trust results in transfer penalty.

Petitioner, a nursing home resident, was ineligible for Medicaid while her husband was alive because the couple’s combined resources exceeded program limits.  When her husband died, all of the couple’s resources were transferred to a trust held for the sole benefit of their daughter per the terms of his will.  Petitioner became resource-eligible for Medicaid after the transfer, but was subject to transfer of assets penalty because the devise to the trust was for less than fair market value.