IM-51 October 3, 2014; IM-14 February 23, 2007; IM-123 July 2, 2001
EUs that have transferred resources knowingly for the purpose of qualifying or attempting to qualify for food stamps are disqualified from participation in the program for up to one year from the date of discovery of the transfer. An administrative fraud hearing is not required to impose the disqualification period.
Apply the disqualification period if the resources are transferred knowingly in the three-month period prior to application or if they are transferred knowingly after the EU is determined eligible for benefits.
EXAMPLE: Assets the EU acquires after certification and then transfers to prevent the EU from exceeding the maximum resource requirements are considered an improper transfer.
The period of disqualification begins with either: (1) the month of application, or (2) the first allotment issued after the notice of adverse action expired if the EU was participating at the time of transfer discovery. If a hearing is requested and the agency decision is upheld, the disqualification period begins with the first allotment following the hearing decision.
The length of the disqualification period is based on the amount by which non-exempt transferred resources, when added to other countable resources, exceed the resource limits.
EXAMPLE: A one-person EU with $1,500 in a bank transferred to her son $3,000 which she had received from a life insurance settlement. We consider $2,500 of the $3,000 a transfer because the first $500 is applied toward the $2,250 resource limit.
The period of disqualification is as follows:
|$ 0 to $ 249.99||1 month|
|$ 250 to $ 999.99||3 months|
|$1,000 to $2,999.99||6 months|
|$3,000 to $4,999.99||9 months|
|$5,000 and over||12 months|
Refer to the Transfer of Property user guide for instructions on entering the transfer in FAMIS.