WAG 07-04-19: Transfer of Assets

PM 07-04-19

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.

1. 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.
2. 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.
3. If the transfer is not allowable, disqualify the unit.
   1. 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.
   2. 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 $3,800, and transfers $3,000 of its assets to remain eligible.

        Total amount of nonexempt assets is $3,800. The unit's asset limit is $3,000. 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. 

4. Notify the unit of the disqualification.

   For applications, send the unit an IL444-0360 C explaining the reason for the disqualification and its length.

   For active cases, send the unit a locally issued IL444-0360 C explaining the reason for the disqualification and its length.