Notes

Outline

The Foster Care Independence Act of 1999 On 12/14/99, the President signed into law the Foster Care Independence Act of 1999 effective for resource transfers made on or after 12/14/99. Section 206 of this law provides for a      period of ineligibility for SSI, up to 36 months, for an individual who disposes of resources for less than fair market value.

The Foster Care Independence Act of 1999 Applies to resource transfers made by the eligible individual, the individual's spouse, and by persons who are co-owners of the resource being transferred. Fair market value is equal to current market value of a resource at the time of the transfer, or if earlier, at the time of the resource being subject to a contract for sale.

Period of Ineligibility The period of ineligibility begins on the first day of the first month in or after which resources were disposed of for less than fair market value. The period of ineligibility can                   last up to a maximum of 36                  months regardless of the          uncompensated value of the transfer Ineligibility cannot exceed 36 months.

Determining the Number of Months of Ineligibility

POLICY-EXCEPTIONS Transfers of a Home An individual shall not be ineligible for SSI for transfer of a home to: the spouse of the transferor; a child of the transferor who is under age 21, or who is blind or disabled; a sibling who has equity in the                        home and residing in the                                 home at least 1 year before                                the date the transferor                                becomes institutionalized;

POLICY-EXCEPTIONS Transfers of a Home An individual shall not be ineligible for SSI for transfer of a home to: a child of the transferor who was residing in the transferor's home for at least 2 years before the transferor becomes an institutionalized individual, and who provided care to the transferor which                     permitted the transferor to reside at                              home rather than in such an                                 institution or facility.

POLICY-EXCEPTIONS Transfers to a Spouse or Child An individual shall not be ineligible for SSI if resources were transferred: to the transferor's spouse, or to another person for the sole benefit of the transferor's spouse; from the transferor's spouse to another person               for the sole benefit of the transferor's spouse; to the transferor's child who is blind or               disabled or to a trust for the benefit of                         the transferor's child who is blind or disabled.

Additional Exceptions An individual shall not be ineligible if: Resources are used to establish a trust solely for the benefit of an individual under age 65 who is disabled. There is a satisfactory showing is made          that the individual intended to dispose of        the resources either at fair  market value,          or for other valuable consideration; or

Additional Exceptions An individual shall not be ineligible if the resources were transferred exclusively for a purpose other than to qualify for SSI; or all resources transferred for less than fair      market value are returned to the transferor; the Commissioner determines, that the            denial of eligibility would be an undue         hardship.

Exceptions to the FCIA 99 Medi-Cal Payback Trust Exclusions Does not apply to any trust described in sections 1917(d)(4)(A) and (C) of the SSACT including trusts established under California Probate Code 3604. Section 1917 (d)(4)(A) trusts are commonly referred to as "Medicaid (Medi-Cal) pay-back trusts" and provide that, upon the individual's death, the State will be reimbursed from the trust for Medicaid expenditures made on  behalf of the individual.

Exceptions to the FCIA 99 Medi-Cal Payback Trust Exclusions Section 1917(d)(4)(C) trusts are commonly referred to as "Medicaid pooled trusts" and are administered by a nonprofit association. The trust may contain the assets of a large number of individuals. The trust must reimburse the State, upon the individual's death, for Medi-Cal expenditures made on behalf of the individual from the balance of the trust that the trust administrator is not entitled by terms of the trust or contract to keep.