If a household member performs an invalid resource transfer the entire household is ineligible for assistance for a period of time. Members may not apply for assistance until the period of ineligibility has expired. If they apply prior to the expiry of the period of ineligibility they are determined ineligible. The following rules determine if a resource transfer is invalid and how the period of ineligibility is calculated.
For every asset transferred by any household member in the 3 months prior to application or any time during the certification period:
- Determine if the resource is countable or excluded.
- For countable resources, determine if a Invalid Resource Transfer Exception applies.
- For transfers that are not allowed, determine the uncompensated value for each transfer.
- When the uncompensated value is greater than 0, a period of ineligibility applies for each invalid resource transfer
Invalid Resource Transfer Exceptions
Eligibility for Cash Assistance will not be affected by the following transfers:
- Resources which are transferred between members of the same household (including ineligible aliens or disqualified person whose resources are being considered available to the household).
- Resources which are transferred for reasons other than qualifying or attempting to qualify for Cash Assistance benefits between members of the same household (including ineligible aliens or disqualified person whose resources are being considered available to the household).
Invalid Resource Transfer
The following period of ineligibility is imposed if an individual has a current Invalid Resource Transfer:
- The household is ineligible for Cash Assistance benefits for (n) number of months. The number of months the household is ineligible for is determined by the value of the resource transferred exceeding the resource limit divided by the Cash Assistance benefit amount for the household size.
Calculate Period of Ineligibility
The Period of Ineligibility is calculated as follows:
- Determine the uncompensated value of the asset transfer
- Determine the maximum benefit amount for the household size
- Divide the uncompensated value by the maximum benefit amount for the household size
- Round result down to the nearest whole number to determine the number of months of ineligibility
- Period of Ineligibility is for the number of months determined in step 4