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What does it mean to transfer resources?While similar to Medicaid transfer of assets, SSI has separate provisions. Transferring a resource is giving away or selling a resource. For example, giving away cash to another person is a transfer of resources. In some cases, putting resources into a trust is considered a transfer of resources that makes you ineligible for SSI. In other cases, the trust itself is counted as a resource. And the value of trust could put you over the resource limit. Similar to Medicaid, there is a 36-month “look-back” period starting with the later of the SSI application date or the date of the transfer. The length of the penalty is the amount of the uncompensated value divided by the SSI federal benefit rate plus the SSI state supplement applicable to the individual’s living arrangement. There is a maximum penalty period of 36 months and the penalty starts in the month of the transfer, rather than the following month. There is no “double-counting,” i.e., the transfer is either treated as an available resource or a transfer for purposes of the penalty, but not both. There are important exceptions to application of the penalty, similar
to those found in Medicaid: (1) resources transferred exclusively for a
purpose other than to qualify for SSI; (2) denial of eligibility would work an
“undue hardship” on the individual; (3) the individual “intended” to
dispose of the assets at fair market value or for other valuable
consideration; and (4) all resources transferred for less than fair market
value have been returned to the individual. Further, most of the
Medicaid exceptions found in 42 U.S.C. § 1396p(c)(2) apply, including
transfers to a “(d)(4)(A)” trust.
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