Resources Volume II, MS 5000 - 5199

1. ResourcesVolume II, MS 5000 - 5199 Resources considered and limits applied for SNAP cases.

2. Review IFSS First, let’s revisit the resource rules from Introduction to Family Support Systems

3. Income or Resource? DO NOT count the current month's income as both income and a resource. • For example, if income for the current month is deposited in a bank account, deduct that amount from the account to determine the actual account balance.

4. Document, Document, Document! Always document in your comments on the type of resource, how it was considered in the case, and how it was verified, if applicable.

5. Transfer of Resources Households are NOT allowed to transfer resources solely for the purpose of becoming eligible for SNAP.

6. Allowable Transfers Eligibility is not affected for transfers which: • Would not otherwise affect eligibility (transferring an excluded resource, etc.) • Were sold or traded at or near fairmarketvalue • Were transferred between household members • Occurred for reasons other than qualifying for benefits, such as funding an inaccessible educational trust fund.

7. Resource Transfer Disqualification Any household that transfers resources to a non-household member for the purpose of qualifying for food stamps is disqualified. This provision applies to any member of the household whose resources are considered available to the household.

8. Resource Transfer Disqualification The period of disqualification is up to one year and is assigned when the household knowingly transfers resources either: • In the 3-month period before making application • After approval and while receiving benefits

9. Disqualification Begins as Follows: • Application: Begins the month for which the household is requesting benefits. • Active Case: Begins the first issuance after adverse notice period, unless fair hearing is requested with continuation of benefits during the balance of the certification period.

10. Documenting Transfers If the household has transferred resources for the purpose of qualifying for food stamps, document the determination of ineligibility and the amount of transferred resource.

11. Determining Disqualification Periods • Add the amount of the transfer to the existing resource amount and compare to the resource limit for the household size. • If the total exceeds the resource limit, use the excess amount (over the allowable resource limit) to determine the disqualification period.

12. Example • Johnny transferred $2,500 to his uncle. • All other countable resources total $1,400. $2,500 + $1,400= $3,900 • The resource limit for this HH is $2,000, so the excess resource amount is $1,900. • $1900 is used to determine the disqual. period, using the chart on the next slide...

13. Disqualification Periods KAMES applies the correct disqualification period when entries are made on the system.

14. Transferred Resources • Enter a transfer of resources on this screen. • Be sure to enter all of the requested information.

15. It’s Review Time! Please return to your Notes Pages and answer the two “Transfer of Resources Questions” on Page 2.

16. Countable Resources The following slides list Countable Resources for the SNAP program. Try to think of examples of these types and write them on your Notes Pages.

17. Countable Resources The following resources are counted: (You don’t need to write examples for these) • Cash on hand • Checking and Savings accounts • Stocks and Bonds • Certificates of Deposit (minus any penalty for early withdrawal)

18. Disqualified Members • Resources of a disqualified household member are counted in their entirety to the household, minus allowable resource exclusions. • Can you think of an example of a disqualified member from what you’ve learned so far?

19. Ineligible Alien Members • Resources of ineligible alien household members are counted in their entirety to the remaining household members. • So, even though these individuals do not receive benefits on the case, their resources are considered.

20. Lottery Winnings • Lottery winnings paid as a non-continuing lump sum are countable resources. • Lottery winnings paid on an annual basis are considered unearned income. • Can you think of examples for each of these?

21. Tobacco The equity value of tobacco pounds, which are purchased (not rented or leased) and are not considered essential to the employment or self-employment of a household member is a Countable resource.

22. Attendant Care Taxes Money accumulated from attendant care payments to pay withholding taxes are a Countable resource.

23. Loans All loans, except educational loans with deferred repayment, are Countable resources.

24. Confused? If you were unsure about any of those types of Countable Resources, list them on your Notes Pages to discuss when we meet in class...

25. Resources Which May or May Not be Counted The following slides list resources which may or may not be counted, depending on the situation...

26. Jointly Held Resources Resources owned or held by more than one household are considered available in their entirety to each household, unless they can demonstrate that the resources are inaccessible to the household.

27. Jointly Held Resources If the household claims that an accessible jointly held checking/savings account does not belong to them, consider as countable unless the household does both of these: • Obtains written verification from other account holders that the household has not contributed funds to the account; and • Removes their name from the account.

28. Jointly Held Resources • If it is verified that the member's name was removed from the account, do not count the resource in the case. • This is not considered a transfer of resources. • If the household verifies that it has access to only a portion of the resource, consider onlythatportion of the resource in the case.

29. Battered Women and Children Resources of battered women and children residing in shelters are not counted if: • The resources are jointly owned with members of their former household; and • The shelter resident's access to the resources is dependent on a joint owner who still resides in the former household.

30. HUD Subsidy Payments • HUD retroactive tax and utility cost subsidy payments issued as a result of Underwood vs. Harris are excluded in the month received and the following month. • Thereafter, any remaining balance is counted as a resource.

31. Inaccessible Resources • Resources whose cash value is not accessible to the household, such as but not limited to, security deposits on rental property or utilities. • List some examples of Inaccessible Resources on your Notes Pages...

32. Resource... What Resource? • Exclude from consideration any resource which is available to the household, but of which the household is unaware, up to the point in time the household is advised that the resource is legally available. • The resource is then considered in determining eligibility.

33. Inaccessible Trusts Any funds in a trust and the income produced by that trust which is not available to the household, is not counted if ALL of the requirements on the following slides are met...

34. Consider Trusts Inaccessible IF: • The trust is under the control and management of an institution, corporation or organization -OR- • The trust is under the control and management of an individual, appointed by the court, who has court imposed limitations placed on use of the funds that meet the following requirements...

35. Consider Trusts Inaccessible IF: • The trust investments do not directly involve or assist any business or corporation under the control or influence of a household member • The trust arrangement will not likely cease during the certification period • No household member has the power to revoke the trust arrangements, or change the name of beneficiary, during the certification period.

36. Irrevocable Trusts Funds held in Irrevocable trust are either: • Established from the household's funds (trustee uses the funds only to make investments, or to pay educational or medical expenses of a named individual) • Established from non-household funds by a non-household member • Deposited in an Irrevocable Funeral Trust Agreement with a funeral home.

37. Nonrecurring Lump Sums Are: • Counted as a resource, unless specifically excluded as a resource by other federal laws. • Examples: income tax refunds or rebates, insurance settlements; lottery winnings, refunds of security deposits on rental property or utilities, etc.

38. Nonrecurring Lump Sums If the Lump Sum amount exceeds resource limits, send form PAFS-2 and allow the household 10 calendar days to update its entire resources statement. • If the household declines to do so, discontinue the case due to excess resources. • If the household responds, but resources still exceed the limits, discontinue the case.

39. Commingled Funds • If an Excluded Resource and Countable Resource are commingled (in the same account), the Excluded Resource is only excluded for 6 months. • If not commingled, there is no time limit for excluding these resources.

40. “Closely Held” or S Corporations • Special rules apply to income and resources (such as stocks) of corporations held by one or more shareholders and S Corporations. • Since you will not see these every day, refer to Volume II, MS 5060, item H if you ever have one of these situations...

41. Overseas Deployment Servicepersons deployed overseas may provide friends/family access to their bank account solely for the purpose of paying bills or handling the serviceperson’s affairs. • If the household can access the account for its own purpose, then the funds must be counted. • If the household cannot use funds for itself, the funds are excluded as inaccessible.

42. Overseas Deployment • Generally, spouses have joint bills and expenses and this provision would not apply for them... • In a situation where the couple was separated and maintained separate households/bills before deployment, this would apply to spouses too - as long as the funds are not used for the applicant household.

43. Overseas Deployment It is the responsibility of the applicant household to provide documentation concerning such an arrangement. This could be in a statement from the involved financial institution, or other means attesting to the fact.

44. Self-Employment Resources • Liquid resources that can be readily identified as used exclusively for the self-employment enterprise are not considered available to the household. • If these resources are commingled for both the household's and the business' use, the resources are divided based on the household's statement of percentage of use.

45. Self-Employment Loans • A self-employed household that receives a business loan has the loan considered as a resource in the month received, even if the household anticipates spending some or all of it in the same month. • Any amount remaining after the month of receipt continues to be counted as a resource until the money is spent.

46. Excluded Resources All resources other than those listed in this show, (which are also listed in MS 5050 or MS 5060) are Excluded. The next slide lists some common Excluded Resource types for SNAP, which may or may not be counted in other programs.

47. Excluded Resources • All vehicles, licensed and unlicensed • All real estate/ real property • Personal property, such as jewelry, collections • Household goods - contents of residence • Resources of an SSI recipient (MS 5045) • Resources of a Categorically Eligible household (MS 5045) • Life insurance policies • Burial plots • Gift cards

48. Categorically Eligible Recipients • If all members receive SSI, or at least one household member receives or is authorized to receive K-TAP, Kinship Care and/or WIN, the entire household is categorically eligible. • These households are considered resource eligible for the food stamp program.

49. SSI Recipient Resources • Any household member who receives SSI benefits is categorically eligible, and that member's resources (if they can be identified separately), are disregarded when counting household resources. • Households containing individuals convicted of a drug felony cannot be categorically eligible.

50. KAMES Resource Entry The following slides contain the KAMES screens used to enter Resources.