5721 Exempt Transfers - The following transfers are exempt and shall not result in a penalty period:

 

  1. A transfer of the individual’s home to:
     

    1. The spouse of the individual.
       

    2. A child of the individual who is under the age of 21 or an adult child who meets the blindness or disability criteria.
       

    3. A sibling of the individual who has an equity interest in the home and who was residing in the home for a period of at least 1 year immediately before the date the individual applied for food assistance.
       

    4. An adult child of the individual other than described in item (b) above who was residing in the home for a period of at least 2 years immediately before the date the individual applied for food assistance and who provided care to the individual which permitted him or her to reside at home. Residence in the home must be verified. The care provided must be documented and related to the individual’s need. Documentation from a third party, preferably a physician or other medical professional, must support the individual’s claim regarding the type of care provided and the duration of such care. The type of care provided is not limited to medical services only, household services are also included if the child provided all, or nearly all, household tasks.
       

  2. A transfer of property, to the individual’s child, regardless of age, who meets the blindness or disability criteria.
     

  3. A transfer by the individual into a trust for the sole benefit of:
     

    1. The individual’s child who meets the blindness and disability criteria.
       

    2. An individual under age 65 years who meets the blindness and disability criteria.
       

  4. A transfer of an exempt asset by the individual or spouse if the resource would have been exempt at the time of transfer. Except the following are considered non-exempt transfers:
     

    1. The home and surrounding property (including the transfer of a life estate interest only).
       

    2. Income-producing real or personal property or included in a trade or business in which the individual is actually participating in the production of income as outlined in 5334 and 5430 (12). Multiple transfers of such property occurring within the same month shall be regarded as a single transfer for purposes of establishing the $6000 limit as well as the total uncompensated value.
       

    3. A purchase of an annuity, promissory note, contract sale, loan or mortgage is evaluated as a transfer of property according to 5722 regardless of exempt vs non-exempt status.


    4. Any otherwise exempt resource that was transferred by means of a constructive or step transaction transfer as described in 5722(9).
       

  5. A transfer of property that has been approved by the agency prior to transfer. Prior approval is only provided to current applicants or ongoing recipients. Individuals requesting prior approval must submit a request, in writing, with the following information:
     

    1. A description of the specific property transferred. For real property, include the legal description.
       

    2. The equity value in the property.
       

    3. A description of how the proposed transfer will occur (e.g., sale, trade, contract on time); to whom it will be transferred; and the amount and source of compensation the applicant/recipient or spouse is expected to receive.
       

    4. Information regarding any previous or ongoing attempts to sell or receive adequate compensation from the transfer, including any attempts to dispose of the property for fair market value.

      The EES Regional Program Administrator, or designee, will review the request and issue a decision. A notification regarding the decision shall be sent to the applicant/recipient      .
       

  6. A transfer of property where fair market value was received or is expected to be received within an actuarially sound period.

  7. A transfer of property that has been returned to the individual or spouse:

    1. Full return of property – If the transferred property, or the fair market equivalent of the property, has been returned to the individual or spouse, no transfer penalty shall be applied.

    2. Partial return of property – If a portion of the transferred property, or the fair market equivalent has been returned to the individual or spouse, the transfer penalty shall be modified but not eliminated. The previously established penalty shall be revoked with eligibility redetermined based on the value of the unreturned property.

Assets returned to the individual must be considered when determining eligibility, including eligibility for the period between the initial transfer penalty period and the date of return.

NOTE: For purposes of this section, a return of assets to the individual or spouse is not restricted to only a direct transfer of the assets back to the individual or spouse. A return would also include instances where expenses or debts of the individual (such as nursing home expenses, home mortgage, medical bills, credit card debt, etc.) have been paid on the individual’s behalf by the recipient of the transferred assets. Any payment made which results in a gain or benefit to the individual shall be considered a return of assets even if the individual had no actual control over the returned assets.