754-10        TRANSFER OF RESOURCES

When an assistance unit includes an adult who intentionally transfers a resource for less than its value to become or remain eligible for assistance, the entire assistance unit may be disqualified for up to 12 months.

754-10 A.   DEFINITIONS

1. Adult

An adult is an individual who is age 18 or older (including an 18-year-old dependent child).  An individual under the age of 18 is also considered to be an adult if he or she is emancipated either by marriage or court decree.  

Note:

Married minors under the age of 16 are not considered adults unless a court emancipates them.  

2. Fair market value

Fair market value is the amount that the resource would have reasonably sold for at the time of the transfer.  See manual section 752-1 for information on how to determine the fair market value of a resource.

3. Equity value

Equity value means the fair market value of a resource less any amounts owed or other legal encumbrances.  See manual section 752-1  for information on how to determine the equity value of a resource.

4. Transfer

Transfer means any action taken to sell, trade, or give away a resource.

754-10 B.   TRANSFERS THAT DO NOT AFFECT ELIGIBILITY

Evaluate each transfer to determine if it causes ineligibility for ATAPAlaska Temporary Assistance Program. The following transfers do not affect eligibility, but questionable situations may require verification such as receipts, legal documents, and collateral contacts:

1.   Transfers of exempt resources;

2.   Compensation received was greater than or equal to the equity value of the resource;

3.   Transfers made more than three months before application;

4.   Resources that would not have caused ineligibility if they had been retained;

5.   Transfers made to satisfy a court order or settle a debt; and

6.   Transfers made as the result of theft, fraud or coercion against the person who transferred the resource.

754-10 C.   DETERMINING INTENT OF TRANSFER

When a transfer does not fall into one of the above categories, it is presumed that the client intentionally transferred the resource to become or remain eligible for ATAPAlaska Temporary Assistance Program.  However, the individual must be given an opportunity to rebut this presumption and to provide proof that the transfer was made unintentionally or for a different purpose.

To determine intent, ask the client why the resource was transferred.  If they admit that the transfer was made to qualify for ATAPAlaska Temporary Assistance Program, then calculate the disqualification period and take appropriate action on their case.  

When intent is questionable, consider the following:  What was the client’s life situation and economic health in the time period surrounding the transfer?  Did they just lose a job, or did they quit?  Have they recently been denied TATemporary Assistance for excess resources?  How have they survived up until this point?  Although these questions are commonly asked during interviews, they can be especially helpful in deciding whether a resource was intentionally transferred to become or remain eligible for ATAPAlaska Temporary Assistance Program.

Unless there is good reason to believe otherwise, examples of resource transfers that will not result in a disqualification penalty include situations where:

•  The individual did not believe the transfer would affect the family’s eligibility for ATAPAlaska Temporary Assistance Program, or

•  The individual was not a ATAPAlaska Temporary Assistance Program recipient at the time, and did not expect to apply for assistance within three months of the transfer.

Caseworkers may wish to investigate further and require additional proof to establish whether or not the transfer was made for the purpose of qualifying for ATAPAlaska Temporary Assistance Program.

754-10 D.   DISQUALIFICATION PERIOD

Use the equity value of the transferred resource to determine the disqualification period.  The disqualification period may not exceed 12 (twelve) months.  It begins on the first day of the month following the month of the transfer, and continues without interruption through the end of the penalty period.  

To calculate the disqualification period, divide the equity value by the TATemporary Assistance family's maximum payment standard. The result, rounded down to a whole number, is the family's period of ineligibility.

Example 1 - Applicant:

A single mother and her child apply for ATAPAlaska Temporary Assistance Program in June. In March she received $800 for the property.  The equity value is $5,000.

         $5,000 Equity Value                  =    6 Months
$821 Maximum Payment Standard         (Rounded down from 6.09)

The disqualification period is six months beginning with the month of April, the month after the month of transfer.  The family is not eligible until October 1.  Deny the application.

Example 2 - Recipient:

In December, the single parent in a four person TATemporary Assistance household inherits a farm in Iowa worth $100,000.  After all taxes are paid, the equity value is $20,000.  In December, he transfers the title to his sister for $1,000.  The household reports the transfer in June.

         $ 20,000 Equity Value                   =   19 Months
$1,025 Maximum Payment Standard         (Rounded down from 19.51)

The family is ineligible for 12 months beginning in January, the month after the month of the transfer.  Although the family’s disqualification period is calculated to be 19 months, the actual penalty cannot exceed 12 months. The family will not be eligible again until January 1 of the following year.  The case must be closed and an overpayment claim established.

754-10 E.   ADULT MOVES AWAY

If the adult who transferred the resource moves out of the assistance unit, the disqualification follows that individual.  The remaining members of the assistance unit are not affected by any months remaining in the disqualification period. They may apply and be found eligible for ATAPAlaska Temporary Assistance Program again.  

However, if the adult who made the transfer enters another TATemporary Assistance family, and he or she is a mandatory filing unit member, the new TATemporary Assistance family becomes ineligible and must serve out the rest of the disqualification period.

754-10 F.   MULTIPLE TRANSFERS

For cases involving multiple transfers within a 12-month period, calculate each disqualification period separately.  Apply overlapping disqualification periods in sequence.

Example:

A mother and child apply for ATAPAlaska Temporary Assistance Program in October.  She made two intentional transfers with an equity value of $2,000 each, one in August and another in September.  

          $ 2,000 Equity Value                 =    2 Months
$ 821 Maximum Payment Standard       (Rounded down from 2.44)

The disqualification periods are calculated at two months for each transfer.  The family will serve two consecutive penalty periods of two months each.  The first penalty period begins September 1 and ends October 31.  The second penalty period begins November 1 and ends December 31.  The family is not eligible for ATAPAlaska Temporary Assistance Program until January 1.