From March 1, 1981 through June 30, 1988, a transfer (i.e., giving away or selling)
of nonexcluded resources for less than fair market value(FMV) resulted in the individual being charged with the difference between the FMV of the
resource and the amount of the compensation received (i.e., the uncompensated value)
for a period of 24 months from the date of the transfer. Loss of SSI eligibility because
of such a transfer could also cause a loss of Medicaid eligibility in those States
in which Medicaid eligibility results from SSI eligibility. From April 1, 1988 through
June 30, 1988, the penalty for transfers could be waived because of undue hardship.
The 1981 - 1988 transfer rules are explained in SI 01150.100; the exception to those rules, rebutting the presumption of the reason for the transfer,
is explained in SI 01150.120 — SI 01150.127.
Starting July 1, 1988, transfers of resources only affected eligibility for certain
Medicaid services, not for SSI. (See
SI 01150.110 for a description of the provision that went into effect on July 1, 1988.)
The Medicaid transfer rules have been broadened and clarified effective October 1,
1993. However, they only have a direct effect on Medicaid, not SSI eligibility.