Disqualifying Transfers of Assets 400-19-55-05-35

(Revised 6/1/10 ML #3225)

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(N.D.A.C. 75-02-01.2-26)

 

The transfer of any property without adequate consideration is disqualifying if the transfer was for the purpose of becoming eligible or to remain eligible for this program. The household’s intent and the lapse of time between such transfer and the TANF Application are among the factors which must be evaluated. The 12-month period prior to the month in which a TANF Application is received must be reviewed for the occurrence of a transfer of assets. Evaluate on-going cases when appropriate for a disqualifying transfer of assets.  

Note: A transfer of an exempt asset (See Section 400-19-55-05-30, Exempt Assets) is not considered a Disqualifying Transfer.

 

If a transfer is determined to be disqualifying, the TANF household will be ineligible from receiving TANF benefits for a period beginning with the month in which the transfer took place and continuing for a number of months equal to the result of dividing the known or estimated equity value of the asset transferred by the TANF Basic Standard of Need (without add on’s for special items of need) at the time of the transfer. Any amount remaining will be counted as unearned income for the first potential month of eligibility after the disqualification period ends.

Note: Any period of ineligibility begins the first day of the month of transfer.

 

Example: If the equity value of the transferred asset for a TANF household was $10,000 and the TANF Basic Standard of Need was $523, the ineligibility period is 19 months plus $63 remains to be counted as unearned income for the first potential month of eligibility after the disqualification period ends. ($10,000 divided by $523 = 19.12 months. 19 months times $523 equals $9,937. $10,000 minus $9,937 equals $63).  

 

If the TANF household member who caused the household’s ineligibility due to a disqualifying transfer leaves the household, the remaining household members are no longer subject to the disqualification period if the transferred asset was owned solely by the departing household member. Effective the day following the day, in which the individual left the TANF household, the remaining members may request TANF benefits.  

Note: However, if the transferred asset was jointly owned with any remaining member of the household, the disqualification period will continue as initially calculated.

 

If the household member who caused a disqualification moves to another TANF household, the previous period of ineligibility does not remain in effect for the new TANF household. A new disqualification period must be calculated for the new household based on the remaining amount of the transferred asset and the TANF Basic Standard of Need of the new household.

Example: Continuing on with the Example above,  If the individual moves to a new TANF household after 5 months of ineligibility, a revised period of ineligibility for the new TANF household is calculated as follows: $523 (Old TANF household Standard of Need) X 5 months = $2,615. $10,000 (original equity value of transferred asset) less $2,615 = $7,385. $7,385 is the remaining amount of the transferred asset which must be divided by the TANF Basic Standard of Need of the new TANF household.

 

If the TANF Basic Standard of Need of the new TANF household is $328, the disqualification period is 22 months plus $169 remains to be counted as unearned income for the first potential month of eligibility after the disqualification period ends. ($7,385 divided by $328 = 22.51 months. 22 months times $328 equals $7,216.  $7,385 minus $7,216 equals $169).

 

The disqualification period for the new TANF household is effective the month following the month in which the individual entered the new household.  

 

Other household members who leave a disqualified household are no longer subject to the disqualification penalty if the departing member did not own the transferred asset.

 

There is no recalculation of the disqualification period based on any changes in the TANF Basic Standard of Need (e.g. change in household size).

 

Any portion of the transferred asset that is returned must reduce the amount of the disqualifying transfer and reduce the period of ineligibility. However, the period of ineligibility will not end prior to the date of the return.  

Note: If a household has been determined to have made a disqualifying transfer, please contact State TANF Policy for assistance in establishing the disqualification period in the automated computer system.