5700 - Transfer Of Resources

5710 Transfers Affecting Food Assistance - At the time of application for food assistance, households shall be asked to provide information regarding any resources which any household member (or ineligible non-citizen or disqualified person whose resources are being considered available to the household) has transferred within the 3-month period immediately preceding the date of the application. Households which have transferred resources knowingly for the purpose of qualifying or attempting to qualify for food assistance benefits shall be disqualified from participation in the program for up to 1 year from the date of the discovery of the transfer. This disqualification period shall be applied if the resources are transferred knowingly in the 3-month period prior to application or if they are transferred knowingly after the household is determined eligible for benefits. An example of the latter would be assets which the household acquires after being certified and which are then transferred to prevent the household from exceeding the maximum resource limit.

5711 Transfers That Do Not Affect Eligibility - Eligibility will not be affected by the following transfers:
 

1. Resources which would not otherwise affect eligibility; for example, personal property, such as jewelry and furniture, or money if the household's total resources are less than the allowable limits at the time of the transfer;
    

2. The sale or trade of resources at or near fair market value;
    

3. Resources transferred between members of the same household (or ineligible non-citizen or
   
   disqualified person whose resources are being considered available to the household); and
    

4. Resources transferred for reasons other than qualifying for food assistance benefits. For example, a parent placing funds into an educational trust fund as described in 5610.

    
    

5712 Willful Transfers -In the event that it is established that an applicant, for the purpose of qualifying or attempting to qualify for food assistance benefits, knowingly transferred resources, the household shall be sent a notice of denial explaining the reason for and length of the disqualification. The period of disqualification shall begin in the month of application. If the household is participating at the time of the discovery of the transfer, a notice of adverse action explaining the reason for and length of the disqualification period shall be sent. The period of disqualification shall be made effective with the first benefit to be issued after the notice of adverse action has expired, unless the household has requested a fair hearing and continued benefits.

5713 Length of Disqualification Period - The length of the disqualification period shall be based on the amount by which the nonexempt transferred resources, when added to other countable resources, exceeds the allowable resource limits. The following chart will be used to determine the period of disqualification: