At application, ask a noncategorically eligible SNAP unit (see PM 05-07-00, PM 05-07-02) to provide information on any assets that a unit member has transferred within the 3-month period before the date of application.
- Discovers that a unit member has knowingly transferred nonexempt assets in the 3 months before the date of application, or any time after the case was approved.
- Determine if the transfer was exempt, or was made to qualify or attempt to qualify for SNAP.
A transfer made for one of the following reasons is an exempt transfer that does not affect eligibility.
- Transfer of an exempt asset, if the value of that asset plus other nonexempt assets does not exceed the asset limit.
- Assets that are sold or traded at or near their fair market value.
- Assets transferred between unit members.
- Assets transferred for reasons other than to qualify for SNAP. For example, a parent transfers savings account money to an educational trust fund.
- If the transfer is not allowable, disqualify the unit.
- Determine the first month of the disqualification period. The first month is:
- the fiscal month of application for transfers made during the application process or during the 3 months before the date of application, or
- for active cases, the fiscal month benefits can be stopped after the end of the 10-day timely notice period, unless the unit requested a fair hearing and continued benefits.
- Determine the length of the disqualification as follows:
- Add the value of the transferred asset plus other nonexempt assets.
- Subtract the unit's asset limit from this amount.
- Find the net amount in the disqualification period chart (see PM 07-04-19-b). This is the length of the disqualification.
Example: A unit of 4 persons, with no qualifying member, has nonexempt assets of $2,800, and transfers $2,000 of its assets to remain eligible.
Total amount of nonexempt assets is $2,800. The unit's asset limit is $2,000. Total excess assets = $800. Using the chart in PM 17-04-19-b, the unit is disqualified for 3 fiscal months.
Begin the disqualification for the first month that can be affected after the 10-day timely notice period has ended. The disqualification lasts for 3 fiscal months.
- Notify the unit of the disqualification.
For applications, send the unit a locally issued Form 360 explaining the reason for the disqualification and its length.
For active cases, send the unit a locally issued Form 157 explaining the reason for the disqualification and its length.