net worth disclosures

On application form 21-526 it says:

"You must disclose all financial transactions that involve a transfer of assets, even if the transaction occurred prior to
the date of your application for VA pension. A gift of property or a sale below the property's value to a relative
residing in the same household does not reduce net worth. Likewise, a gift of property to someone other than a relative
residing in your household does not reduce net worth unless it is clear that you have relinquished all rights of
ownership, including the right to control the property. "

I am assuming that last phrase (unless it is clear that you have relinquished all rights of ownership etc" ) means that if a veteran gave assets to an adult child (not living in his household) that DOES reduce net worth. I am further assuming these transfers of assets (made years ago) do NOT have to be reported on the A&A claim.

Please tell me if I am right or wrong about this.
Thanks,
Laura