QUESTION PRESENTED
Under the Washington Uniform Transfers to Minors Act (UTMA), at what age will the
claimant’s UTMA investment account (Vanguard Account) be countable as either income
or a resource for Supplemental Security Income (SSI) purposes?
BRIEF ANSWER
Once the claimant turns 21. Claimant’s Vanguard Account was transferred by irrevocable
gift under the UTMA. Under Washington law, UTMA property transferred by irrevocable
gift is held by a custodian until the minor reaches age 21. Thus, the agency should
not count the Vanguard Account as income or as a resource for SSI eligibility until
the claimant reaches age 21.
SUMMARY OF FACTS
The claimant received an irrevocable gift of the Vanguard Account from a living individual
in 1998. Shortly after the claimant turned 18, she applied for, and SSA granted, SSI.
Claimant received SSI benefits for nearly two years, until SSA became aware of the
Vanguard Account.
Soon thereafter, SSA suspended claimant’s benefits and demanded a return of the prior
benefits. The agency reasoned that the Vanguard Account was a countable resource.
SSA based that determination on POMS SI SEA 01120.205, which identifies the age of
majority for UTMA property in Washington, and thus the age at which it could count
as income or as a resource, as 18.[1] Claimant sought reconsideration.
ANALYSIS
-
a.
Relevant Authority
The Uniform Transfers to Minors Act (UTMA) permits the property of a minor to be held
by a custodian until that minor reaches a designated age of majority. 39 Am. Jur.
2d Guardian and Ward § 104 (2018). When such a transfer occurs, the minor lacks ownership
rights over the property. Id. Once the minor reaches the age of majority, the minor
assumes ownership rights. Id.
To be eligible for SSI, the dollar value of a claimant’s countable resources or income
cannot exceed certain statutory limits. 42 U.S.C. § 1382(a)(1)(A), (B) & (3)(B); 20
C.F.R. §§ 416.202(d), 416.1201, 416.1205; accord POMS SI 01110.003(A). Under agency policy, property transferred to a minor pursuant to the UTMA is
neither income nor a resource until the minor reaches the age of majority as defined
by state law. See POMS SI 01120.205C, D.
In Washington, the age of majority for property transferred under the UTMA depends
on how the property was transferred to the minor. Wash. Rev. Code § 11.114.200. For
property transferred by irrevocable gift or by will or trust, the age of majority
is 21. Id., §§ 11.114.040, 11.114.50, 11.114.200(1)(a). For property transferred without
a will or trust, the age of majority is 18. Id., §§ 11.114.060, 11.114.200(1)(b).
The age of majority is also 18 for property transferred by a person who holds property
for, or owes a debt to, a minor without a guardian. Id., §§ 11.114.070, 11.114.200(1)(b).
Notably, the age of majority may be extended up to 25 years of age in Washington,
if certain criteria are met, including that the transfer creating the custodianship
occurred on or after July 1, 2007. Id., § 11.114.200(2), (3).
-
b.
Application of Authority
A living individual transferred the Vanguard Account funds to a custodian as an irrevocable
gift for the benefit of the claimant. Accordingly, the age of majority for this account
under Washington state law is 21.[2] Wash. Rev. Code. §§ 11.114.040, 11.114.200(1)(a). The agency should not count the
Vanguard Account as income or as a resource for SSI eligibility until the claimant
reaches age 21.
CONCLUSION
Claimant’s Vanguard Account funds were transferred by irrevocable gift under the UTMA.
Under Washington law, UTMA property transferred by irrevocable gift is held in custody
until the minor reaches age 21. Thus, the agency should not count the Vanguard Account
funds as income or as a resource for SSI eligibility until the claimant reaches age
21.