415.07 Evaluation of Transfers (FSM)

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Determine if the individual received fair market value from a transfer when:

• the individual transferred, assigned, or disposed of countable property,

• the value of the property would have caused the household to exceed the allowable resource limit in effect at the time of the transfer, and

• the transfer has the effect of reducing resources within allowable limits.

If the individual makes multiple property transfers, evaluate each one separately.

If fair market value was not received, use the following guidelines to help evaluate the property transfer:

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

• the economic situation of the individual at the time of the transfer, and

• A property transfer occurred after the eligibility determination.

Example

A household acquired assets after certification, but transferred the assets to prevent exceeding resource limits.

Question a transfer if the background information suggests the individual may have transferred resources for purposes of qualifying for assistance. The burden of proof for substantiating that resources were not transferred for purposes of qualifying for assistance rests with the individual. Some acceptable reasons for a transfer are listed below:

• to prevent foreclosure,

• to meet the terms of an agreement which would be recognized as a legal contract in a court of law, or

• The individual’s income and resources were insufficient to meet basic needs or to maintain upkeep of the property and the individual’s basic needs were provided for in return for the transfer, or the individual lived off the proceeds of the property.