(Revised 10/01/16 ML 3479)
At the time of application, households must provide information regarding all assets which all household members (including ineligible aliens or disqualified individuals) transferred within the three-month period immediately preceding the date of application.
If a disqualified individual transferred assets for the purpose of qualifying or attempting to qualify for program benefits, the household is disqualified for up to one year from the date of discovery of the transfer.
This disqualification also applies if assets are transferred after the household has been determined eligible for benefits in order to prevent reaching the maximum asset limit.
For determining a disqualifying transfer, the burden of proof is the responsibility of the worker.
Permissible Transfers
Transfers of the following do not affect eligibility:
- Excluded assets.
- Any non-excluded assets that, when added to other countable assets, totals less at the time of transfer than the allowable asset limit.
- Assets that are sold or traded at, or near, fair market value.
- Assets transferred between members of the same household (including ineligible aliens, disqualified individuals and ineligible students).
- Assets that are transferred for reasons other than qualifying or attempting to qualify for program benefits.
Example:
A parent placing funds into an educational trust fund.
- Assets of individuals who are categorically eligible or TANF I&R.
Action on Disqualifying Transfers
When a household has transferred assets for the purpose of qualifying or attempting to qualify for program benefits, a notice of denial must be sent explaining the reason for and length of disqualification.
A household that is participating at the time of discovery of the transfer must be sent a notice of adverse action explaining the reason for and length of disqualification.
Length of Disqualification
The period of disqualification begins with the month of application. For participating households, the disqualification period begins the first benefit month after notice of adverse action has expired, unless a fair hearing and continued benefits have been requested.
If a household member who owned and transferred the asset that caused the disqualification leaves the household, the disqualification ends. The remaining period of disqualification follows that individual if the individual becomes a member of another SNAP household.
Length of disqualification is as follows:
|
Amount in Excess of Asset Limit |
Period of Disqualification |
|
$ 0 thru 249.99 |
1 mo. |
|
250 thru 999.99 |
3 mo. |
|
1000 thru 2999.99 |
6 mo. |
|
3000 thru 4999.99 |
9 mo. |
|
5000 or more |
12 mo. |
Example:
A two-person household with a disqualified individual who has $1,750 in a bank account makes a disqualifying transfer of a vehicle with a fair market value of $6,000. The first $4,650 of the vehicle's value is exempt. The amount of the vehicle counted toward the asset limit is $1,350. The household’s asset limit is $2,250. The bank account is $1,750 which allows $500 of the $1,350 of the fair market value of the vehicle to meet the $2,250 asset limit. The $1,100 excess is used to determine the disqualification period of three months ($6,000 less $4,650 less $500 = $850).
