Funds in a QTP may be transferred or “rolled over” to a member of the beneficiary’s
family. A transfer or “rollover” of QTP funds from a beneficiary to a family member
does not necessarily indicate a transfer of account ownership. When there is a valid
transfer, the original account owner no longer owns the property.
A disabled child lives in the household with an ineligible parent and ineligible child.
On April 10, the ineligible parent establishes a QTP that is designated for the disabled
child. The FO determines that the ineligible parent is the owner of the QTP and it
is a countable resource to the parent as of May 1. In determining eligibility for
SSI of the disabled child, the FO deems the child’s resources to include the resources
of the ineligible parent, including the QTP, to the extent that the parent’s resources
exceed the applicable resource limit.
On January 3 of the following year, the ineligible parent “rolls over” the funds to
the ineligible child because the funds are no longer foreseen as necessary to pay
the college education expenses of the disabled child. The FO determines that, although
the parent “rolled over” the funds to a member of the beneficiary’s family, the parent
retains ownership of the funds (i.e., a valid transfer of ownership did not occur).
The funds remain a countable resource to the ineligible parent.
An eligible individual lives in the household with an ineligible spouse and ineligible
child. On January 6, the ineligible spouse establishes a QTP that is designated for
the ineligible child. The FO determines that the ineligible spouse is the owner of
the QTP and it is a countable resource as of February 1. In determining eligibility
for SSI of the eligible individual, the FO determines the total countable resources
are the combination of the resources of the eligible individual and the ineligible
spouse after all applicable exclusions are applied.
On June 6, the ineligible spouse transfers ownership of the funds to the child’s grandfather.
The FO determines that a valid transfer occurred. As of July 1, the QTP is not a countable
resource to the ineligible spouse; however, the FO must determine whether the ineligible
spouse received fair market value (FMV) for the QTP. If not, a period of SSI ineligibility
may exist for the eligible individual.
Rollovers to an ABLE Account: Effective December 22, 2017, rollovers can also include transfers from a QTP to the
beneficiary's or another family member’s ABLE account. Rollovers from a QTP count
toward the annual ABLE contribution limit.