If a family member has lottery winnings of $75,000 and gives it away, is this considered disposing of an asset for less than fair market value?
Not necessarily. See the discussion above re: one-time, lump-sum payments as assets. If the lump sum amount is never classified as an asset, then it logically cannot be classified as an asset disposed of for less than fair market value. On the other hand, a lump sum amount (such as one-time $75,000 lottery winnings) that is retained as an asset and is identifiable as an asset, can potentially qualify as an asset disposed of for less than fair market value. If the family indicates that the asset was given away with no compensation of equal value, as the question suggests, then the asset would seem to fit the definition of an asset disposed of for less than fair market value. Of course, if the family indicates that the “asset” was liquidated to pay bills, buy items of personal property, or for other purposes where fair compensation was received, the asset could not be said to have been disposed of for less than fair market value. Ultimately, as with many other aspects of income and rent,
