The period of ineligibility begins on the first day of the month after the month the
resource was transferred for less than fair market value. The rule applies for initial
claims and in posteligibility situations.
Exception: If an individual transfers resources several times, the total uncompensated value
of all the transfers in the applicable period is used to determine the length of the
period of ineligibility and the period would begin on the first day of the month after
the first transfer.
Example 1: Transfer Before Filing Month On 6/6/00 Mr. Jones files for SSI. He alleges that he transferred a resource on 12/21/99.
The claims representative (CR) determines that the individual transferred the resource
for less than fair market value and that Mr. Jones is subject to a period of ineligibility
of 4 months. The CR determines that the period of ineligibility would be from 1/00
(the month after the transfer) through 4/00. Since Mr. Jones did not file for SSI
until 6/6/00, the period of ineligibility has no effect on his SSI eligibility.
Example 2: Transfer in Filing Month Mr. Johnson gives away $2,500 cash to his brother on 5/15/00 and files for SSI on
5/20/00. The first month of the period of ineligibility is 6/00 (the month after the
Example 3: Transfer After Filing Month Mr. Smith files for SSI on 4/28/00. He learns that he is over the resource limit
because he has $6,500 in savings. Mr. Smith gives away $5,000 on 5/3/00 and reports
this to the field office. The CR determines that Mr. Smith is ineligible due to excess
resources for 4/00 and 5/00 and that the period of ineligibility due to the transfer
begins in 6/00 (the month after the transfer).
Example 4: Posteligibility Transfer Mr. James has been on SSI for several years. On 6/3/00 he inherits a piece of real
property worth $10,000. He transfers ownership of the property to a relative on 6/21/00
and receives no compensation. The inheritance counts as income in 6/00 and the period
of ineligibility due to the transfer begins in 7/00. (See SI 01150.110E. and SI 01150.001B.5. for policy on transfers occurring in the month of receipt.)
Example 5: Multiple Transfers Ms. Thomas files for SSI on 10/22/00. The CR learns that she gave away $2,500 cash
on 3/15/00 and that she gave away an $1,500 cash on 5/3/00. The period of ineligibility
would be based on uncompensated value of $4,000 ($2,500 + $1,500) and would begin
in 4/00 (the month after the first transfer).