AGO 86-10.

Case Date:August 14, 1986
Colorado Attorney General Opinions 1986. AGO 86-10. August 14, 1986Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 86-10 AG Alpha No. SS AS AGAPI Ruben A. Valdez Executive Director Department of Social Services 717 17th Street P.O. Box 181000 Denver, CO 80218-0899 RE: Transfers of residences as affecting eligibility for public assistance.Dear Mr. Valdez: This opinion letter is in response to your June 11, 1986 letter in which you inquired about the requirements of section 26-2-111(1)(c)(I), C.R.S. (1982) for determining eligibility for public assistance. QUESTION PRESENTED AND CONCLUSION Your request for an Attorney General's opinion presents the question: Must a person meet the requirements of (A) and (B) and (C) of section 26-2-111(1)(c)(I), C.R.S. (1982) in the transfer of his/her personal residence in order to be eligible for public assistance? It is my opinion that all three conditions set forth in section 26-2-111(1)(c)(I)(A), (B), and (C), C.R.S. (1982), have to be met by the person's transfer of his/her personal residence in order for such person to be eligible for public assistance. ANALYSIS Section 26-2-111(1)(c)(I), C.R.S. (1982) prohibits a person from being eligible for public assistance benefits where he/she has, either while receiving public assistance benefits or within 5 years of applying for such, assigned or transferred property "without fair and valuable consideration for the purpose of rendering himself eligible for public assistance...." The statute creates a rebuttable presumption that any transfer of property, without fair and valuable consideration, within that period of time has been made for the purpose of rendering the person eligible for public assistance but permits the person to "assign or transfer the ownership of real property owned and used as a residence by him" if (A) The transfer or assignment is made for reasons other than to become eligible for public assistance under this article; (B) The primary purpose of the transfer or assignment is not to acquire moneys or profit but is for some other legitimate reason such as estate planning; (C) The transferor retains the exclusive right of possession of and net income from the real property transferred or assigned. The failure of the general assembly to insert either the word...

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