Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405





                         _______________



                           May 31, 2006

                         _______________





                         GSBCA 16829-RELO





                 In the Matter of LISA B. BALLARD





     Lisa B. Ballard, Goose Creek, SC, Claimant.



     Shawn Pompian, Attorney-Adviser, Office of the Legal Adviser, Department of State,

Washington, DC, appearing for Department of State.

                                   

DeGRAFF, Board Judge.



     In March 2005, Lisa B. Ballard, an employee of the Department of State, transferred

from Massachusetts to South Carolina.  Legal title to Ms. Ballard's residence in

Massachusetts was held by a revocable trust created by Ms. Ballard's parents, and the trust

document gave Ms. Ballard's parents, as trustees, the power to dispose of the property. 

When Ms. Ballard transferred to South Carolina, the Massachusetts property was sold and

her parents signed the deed and the settlement statement as the sellers.  Although State

reimbursed some of Ms. Ballard's relocation expenses, it decided not to reimburse her

claimed real estate sales transaction expenses because it determined she did not hold either

legal or equitable title to the real property she occupied when she lived in Massachusetts. 

Ms. Ballard asked us to review State's decision.



     By statute, when a federal civilian employee transfers from one official duty station

to another and incurs real estate sales transaction expenses in connection with the sale of a

residence at the old duty station, the employee is entitled to be reimbursed, provided several

requirements are met.  One such requirement concerns title to the property.  The statute says

title must be held in the name of the employee alone, jointly by the employee and a member

of the employee's immediate family, or by a member of the employee's immediate family

alone.  5 U.S.C.   5724a (2000).  



     The regulations which implement the statute explain that agencies will determine who

holds title based upon the name which appears on the deed, or based upon who has an

equitable title interest in the property.  41 CFR 302-11.102 (2005).  In order to have

equitable title to property held in trust, the employee and/or a member of the employee's

immediate family must retain the right to distribute the property during their lifetimes, and

the employee and/or a member of the employee's immediate family either must be the only

grantor/settlor of the trust or must retain the right to direct distribution of the property upon

dissolution of the trust.  41 CFR 302-11.105(a).  The regulations define "immediate family"

as including, among others, dependent parents who are members of the employee's

household at the time the employee reports for duty at the new permanent duty station.  41

CFR 300-3.1.



     Applying the provisions of the regulations to the facts presented by Ms. Ballard's

claim, we conclude she does not meet the requirements for being reimbursed.  She did not

hold legal title to the property in Massachusetts, because her name did not appear on the

deed.  She did not have an equitable title interest in the property because she was not a

grantor of the trust and had no right to dispose of or distribute the property.  Although

Ms. Ballard's parents were the grantors of the trust and had the right to dispose of or

distribute the property, they were not members of her immediate family.  Because

Ms. Ballard does not meet the requirements set out in the regulations for reimbursement of

real estate sales transaction expenses, State correctly decided to deny her claim.









                                   ____________________________________

                                   MARTHA H. DeGRAFF

                                   Board Judge