Other Kin-GAP Requirements

The following are additional requirements that may occur while the child is in the Kin-GAP program.

Period of Ineligibility (POI)

EAS 42-221.1, 42-221.2, and 42-221.4

A period of ineligibility applies if a Kin-GAP child gives away or transfers, for less than fair market value, non-excluded income, or property that would cause the AU to exceed its eligibility for benefits. The child/guardian does have the option to put the excess property in a restricted account.

Real Property

The following applies when determining a period of ineligibility for real property:

Establish the fair market value (FMV) of the property transferred
Add other countable property
Subtract the amount of the property limit
Subtract the amount received from the property from the FMV amount
Compare the difference between the FMV and the amount received for the property
Divide the lesser of the two amounts
Round the resulting figure down to the nearest whole number to determine the number of months in the POI.

Example of POI Computation for Real Property

While on aid, a Kin-GAP recipient, age 15, inherits a parcel of real property with an FMV of $13,000. The value of this inherited property, when added to other ($1,400) countable property held by the Kin-GAP child, causes the AU to exceed the allowable property limit ($2,000). The AU sells the parcel for $10,000, which is less than its $13,000 fair market value.

The POI computations are as follows:

Determine the amount over the property limit:

$13,000 - FMV of the parcel of real property
+1,400 - Other countable property held by Kin-GAP recipient
14,400 - Subtotal of total property limit
-2,000 - Kin-GAP recipient property limit
$12,400 - Amount over the property limit
Determine the difference between the FMV and the amount received for the property:

$13,000 - FMV of the parcel of real property
$10,000 - Amount received by Kin-GAP recipient for the real property
$3,000 - Difference between FMV and amount received for the property
Compare the amount over the property limit with the difference between the FMV and the amount received for the property.
$3,000 is less than the $4,400 difference between the FMV and the amount received for the transferred property.
Divide the lesser of the two amounts calculated by the Kin-GAP payment.
$3,000 divided by $820 (Use the Kin-GAP current rate for child or youth) = 3.7 months
Round the resulting figure down to the nearest whole number to determine the POI.
The POI = 4 months (rounded up from 3.7 months).

Income

A POI results when, in the month of receipt, a Kin-GAP recipient gives away or transfers, for less than FMV, nonexempt, nonrecurring income that would cause the Kin-GAP AU to be ineligible for a cash aid payment.

The POI is computed based on the amount of the net nonexempt income (NNI given away or transferred for less than the FMV that would have made the Kin-GAP AU ineligible for a cash aid payment. The POI is determined as follows:

The amount of the nonexempt income given away or transferred is combined with all other nonexempt income to determine the net nonexempt income. Subtract the Kin-GAP payment from the net nonexempt income.
Take the amount transferred, and subtract from it the value of anything received from the transfer.
Compare the amount of income TRANSFERRED and the amount RECEIVED from the transfer with the DIFFERENCE between the amount transferred and the value of anything received from the transfer. Determine the lesser of the two amounts.
Divide the lesser of the two amounts by the Kin-GAP payment.
Round the resulting figure down to the nearest whole number to determine the number of months in the period of ineligibility.

Example of POI Computation for Income

While on aid, a recipient of Kin-GAP, age 15, receives disability-based social security benefits for $3,005. The recipient gives $2,000 to a guardian. The Kin-GAP recipient will receive $500 per month in disability-based social security benefits.

The POI Computation is as follows:

Determine The Amount Of Net Nonexempt Income Received:

$3,005 - Disability-Based Social Security benefits received
- 225 - Income Disregard
$2,780 - Net Disability-Based Income
Determine the amount of net nonexempt income combined with other net nonexempt income:

$2,780- Net Disability-Based Income
+ 500 - Nonexempt Unearned Disability-Based Income
$3,280 - Net Nonexempt Income
Determine the Adjusted Net Nonexempt Income:

$3,280 - Net Nonexempt Income
- 597 - Kin-GAP Payment rate for child age 15 (old rate, use current rate)
$2,683 - Adjusted Net Nonexempt Income
Determine the difference between the amount of income transferred and the amount received from the transfer:

$2,000 - Amount of income transferred
- 0 - Amount received from transfer
$2,000 - Difference
Determine the difference between the adjusted net nonexempt income and the difference of the amount of income transferred and the amount received from the transfer:

$2,683 - Adjusted Net Nonexempt Income
$2,000 - Difference between the amount transferred and the value of anything received from the transfer (Lesser of the Two)
Divide the lesser of the two amounts by the Kin-GAP payment rate:
$2,000 divided by $597 = 3.35 months
Round the resulting figure to the nearest whole number to determine the number of months in the period of ineligibility (POI):
POI = 3 months (rounded down from 3.35 months).

Applying the Period of Ineligibility (POI)

If the POI is 1 month, then the POI begins in the payment month and the Kin-GAP payment will be a zero basic grant.
If the POI is 2 months or more, then the Kin-GAP payment must be discontinued and the POI begins in the payment month.
- Note: When a transfer is discovered too late to discontinue, the POI begins in the corresponding payment month and any aid payments received during the POI are overpayments.

Restricted Account

EAS 90-130 and 89-130 (i)

A Kin-GAP AU is allowed to retain cash reserves in one or more restricted accounts at a financial institution. These accounts can be utilized to save money for the purchase of a home, to pay for education or training, or to start a new business.

These funds are in addition to the $2,000 property limit for the Kin-GAP AU.

The AU must establish and maintain any restricted account separately from other accounts.

Any type of account that is maintained at a financial institution can be identified as a restricted account; it does not have to be a “savings” account.

The caregiver must state that this account is the Kin-GAP child’s restricted account and is not required to declare the purpose of the restricted account until the first withdrawal is made.

Withdrawals of Restricted Accounts

EAS 89-130

Any non-qualifying withdrawals that are not redeposited within 30 calendar days from the date of the withdrawal are subject to a period of ineligibility (POI). A non-qualifying withdrawal must not be treated as an overpayment. Refer to Period of Ineligibility (POI) [EAS 42-221.1, 42-221.2, and 42-221.4].

[Refer to CalWORKs Restricted Account Information