In order to determine eligibility for SSI, SSA must determine the value of an individual’s
resources at the first moment of the month. Transferring ownership of a resource may
affect the value of an SSI recipient’s countable resources, which in turn can affect
SSI eligibility. Under the Foster Care Independence Act of 1999, (P.L. 106-169) effective
12/14/99, transferring ownership of a resource for less than fair market value can
result in a period of ineligibility for SSI.
Therefore, when an SSI recipient requesting waiver of an SVB overpayment alleges that
a resource has been transferred, (or a rep payee makes that allegation on the SSI
recipient’s behalf), it is necessary to develop this issue in order to determine the
effect on SSI eligibility in considering whether defeat the purpose applies based
on SSI eligibility.
NOTE: If SSI ineligibility occurs as a result of resource transfer, full defeat the purpose
development is still necessary (see VB 02005.325).