Page 811

West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 85 Chapter 5 Assets

Length of Disqualification Example 2: A one-person AG has $3,250 in a savings account. He transfers $600 to qualify for SNAP. To determine his disqualification period, consider the total asset value of $3,250. The countable asset of $3,250 less the $3,000 asset limit, equals the amount in excess of the asset limit or $250. The disqualification period is three months. 5.7.2 WV WORKS A transfer of asset penalty may be imposed if the client gives away or transfers assets without receiving CMV. For purpose of WV WORKS, the following information applies. CURRENT MARKET VALUE (CMV) The amount an asset can be expected to sell for on the open market, in the particular geographic area. Market conditions are reflected in an asset's CMV. CMV Example: A transfer for love and consideration is not considered a transfer for CMV. Also, while relatives and family members legitimately can be paid for care they provide to the individual, it is presumed that services provided for free, at the time, were intended to be provided without compensation. Therefore, a transfer to a relative for care provided in the past normally is not a transfer of assets for CMV. However, an individual may rebut this presumption.

FOR THE SOLE BENEFIT OF A transfer is considered to be for the sole benefit of a spouse, disabled child, or a disabled individual under age 65 if the transfer is arranged in such a way that no individual, except the spouse, child or individual, can benefit from the transferred asset(s) in any way, either at the time of the transfer, or at any time in the future, except when the Department of Human Services (DOHS) is named as the primary beneficiary. The agreement must be in writing. Similarly, a trust is considered to be established for the sole benefit of one of these individuals if the trust benefits no one but the individual, either at the time of the establishment of the trust, or any time in the future, except when the Department is named as the primary beneficiary. However, the trust may provide for reasonable compensation for a trustee to manage the trust, as well as for reasonable costs associated with investing or otherwise managing the funds or property in the trust. In defining reasonable compensation, consider the amount of time and effort involved in managing a trust of the size involved, as well as the prevailing rate of compensation, if any, for managing a trust of similar size and complexity.