7 AAC 40.295 - Denial of assistance for voluntary transfer of resources

(a) The division may deny assistance for a maximum of 36 months to an applicant who, within 36 months before applying for assistance, makes a voluntary assignment or transfer of a resource in order to qualify for assistance. If the transfer is made for less than fair market value, it is presumed that the transfer was made intentionally and for the purpose of qualifying for assistance. The individual who made the transfer may rebut the presumed intent and purpose of the transfer by providing evidence satisfactory to the division that the transfer was made unintentionally or for a different purpose. Evidence to support a determination that the individual made the transfer unintentionally or for a different purpose may include any of the following:

(1) documents or testimony establishing that the transfer was made to settle a legally enforceable debt approximately equal to the equity value of the resource;

(2) documents establishing that the transfer was required by a court or an administrative agency empowered to require the transfer of property;

(3) documents establishing that the individual was a victim of theft, fraud, or coercion; the transfer was made as a result of the theft, fraud, or coercion; and the individual has taken appropriate steps to recover the resource or the equity value of the resource;

(4) evidence that the individual did not believe the transfer would affect the eligibility of the assistance unit;

(5) evidence that the individual believed that the compensation received was approximately equal to the equity value of the resource;

(6) evidence that the individual received property or services approximately equal to the equity value of the resource in exchange for the resource, regardless of whether the property received in exchange would be considered an excludable resource under 7 AAC 40.280;

(7) evidence that, if the transfer had not occurred, the transferred resource would not have caused the assistance unit's countable resources as determined under 7 AAC 45.270 - 7 AAC 40.290 to exceed the resource limit under 7 AAC 45.270 in the month following the transfer;

(8) evidence that the individual was not receiving assistance at the time of the transfer and did not anticipate applying for assistance within the potential period of disqualification under this section.

(b) A transfer is grounds for denial of assistance under (a) of this section if the transfer is

(1) not one approved by the Social Security Administration (SSA), or by the division under 7 AAC 40.290; and

(2) one that would make an applicant ineligible for SSI benefits under 42 U.S.C. 1382 b(c), as revised as of December 14, 1999, which is adopted by reference.

(c) A transfer is not grounds for denial of assistance under (a) of this section if the transfer is one that

(1) has been approved by the SSA or the division; and

(2) as provided in 42 U.S.C. 1382 b(c), as revised as of December 14, 1999, would not make the applicant ineligible for assistance.

(d) The division will establish the period for which assistance is denied under (a) of this section by determining the uncompensated value of the resource disposed of and dividing that amount by the amount of maximum monthly assistance payable under 7 AAC 40.370(c). The resulting quotient, rounded, in case of a fraction, to the nearest whole number, represents the number of months for which the applicant is ineligible for assistance, up to a maximum of 36 months.

(e) For purposes of this section,

(1) "fair market value" of a resource means the equity value that would be assigned to the resource if the resource were available to the applicant in the month following the transfer of the resource;

(2) "transfer" includes assignment.

Notes

7 AAC 40.295

Eff. 10/1/2001, Register 159

Authority:AS 47.05.010

AS 47.25.430

AS 47.25.460