415.11 Evaluation of Transfers (AAM)

415.11 Evaluation of Transfers (AAM)

SR 96-02 Dated 01/96 Previous Policy

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1. Determine if the individual or institutionalized individual ’ s spouse received fair market value from a transfer when:

- The individual or institutionalized individual ’ s spouse transferred, assigned, or disposed of countable assets;

- The value of the assets alone or combined with other countable assets exceeded the allowable limit in effect at the time or the transfer, and

- The transfer has the effect of reducing assets within allowable limits or results in earlier eligibility; or

- An institutionalized individual or their spouse transferred the home to another individual.

If the individual or institutionalized individual ’ s spouse makes more than one asset transfer, evaluate each transfer separately.

Compensation for a transfer must be in a tangible or otherwise assessable form with intrinsic value. A transfer of assets for love and consideration, or similar reasons, is not considered to be a transfer for fair market value. Also, a transfer of assets to a relative in return for providing care in the past is not a transfer for fair market value unless written evidence documents that a compensation agreement was in effect at the time services were provided.

If fair market value is received, no further evaluation is required.

If fair market value is not received, determine whether assets may have been transferred for purposes of qualifying for assistance.

2. Use the following guidelines to help evaluate the asset transfer:

- time frames between the transfer and the date of application,

- the health of the individual at the time of the transfer, and

- the economic situation of the individual at the time of the transfer.

Consider a transfer questionable if the information suggests the individual may have transferred assets for purposes of qualifying for assistance. The burden of proof for substantiating that assets were not transferred for purposes of qualifying for assistance rests with the individual.