A ‘beneficial interest’, received at the time the property is transferred, is acceptable as fair and valuable consideration.
EXAMPLE: Mr. Smith wants to buy a home but, because of his age, he cannot get a loan. He gives his son the amount of money he had for a down payment ($3,000.00). His son secures the loan and buys the house. The deed is in the son’s name. However, Mr. Smith makes the payments and lives in the home. Therefore, although Mr. Smith’s son holds the legal title to the property, Mr. Smith has the ‘beneficial interest’ in the property. This would not be considered a transfer of property. The equity in the property belongs to Mr. Smith, and not his son.
If a situation like the one described in the previous example encountered, send a summary of the pertinent information (copy of the deed, claimant’s statement, etc.) through normal supervisory channels.
The IM Policy unit may obtain an opinion from Legal Section. Take no action based on this factor until the decision is received from the IM Policy unit.