Period of Ineligibility

If the transfer was for the purpose of qualifying for aid, it will render the applicant ineligible for aid for the length of time the property could have provided a level of support at the maximum level of aid. The maximum level is the level for the budget unit at independent shelter rates. Refer to Computation of the Period of Ineligibility below.

Beginning and Ending Dates

The Period of Ineligibility begins on the first of the month following the date the transfer which resulted in ineligibility occurred (if a continuing case, allow for a seven-day notice).

Example: A transfer of property in the amount of $1000 occurred in January 2011. The amount above the $300 limit is $700. (337 ÷ 700=2.07).

If the transfer period occurred...	Then...
Prior to application,	The application would be denied and the client would not be eligible again until March.
After eligibility was certified,	The case must be discontinued as soon as a 7 day notice can be provided. The period of ineligibility would be 2.07 months.

The Period of Ineligibility Ends When

Property legally returned to client, or
Client receives adequate consideration, or
Excess Net Market Value Reduced to Zero, or (Months of ineligibility reduced to 0.)

Computation of the Period of Ineligibility

To compute the period of ineligibility, the total amount of property transferred in excess of $300 must be divided by the maximum need standard. The resulting whole number is the number of months of ineligibility. If there is a remainder from this division, the remainder will be considered as income in the month following the end of the period of ineligibility. Refer to “Transfer of Personal Property - GA Policy [182]. ExampleExample

An applicant gave $1,100 to a friend 11/20/10, and makes application for GA 12/15/10. It is determined the transfer of property was for the purpose of qualifying for aid. The need standard is $337. Compute the period ineligibility as follows:

$1,100
-300
--------

$800 (value of property in excess of $300)

2 months

------

$337 $800
-674
------
with $126 remaining

The applicant is ineligible for 12/10 and 01/11. The remaining $126 will be applied as income for the month of 02/06, if the client is otherwise eligible.

Note: The period of ineligibility computation must be documented in a CalSAWS Journal Entry. The period of ineligibility must be recomputed if the need standard changes.

Income

Income to a recipient during the period of ineligibility has no effect on the period of ineligibility.

Special Needs

Only verified special needs may be taken into consideration (over and above the formula figures) when computing the length of the period of ineligibility Refer to Payment chapter.

Failure to Provide Information

The client must be informed in writing of the required information/documents needed and due date. A notice of action for discontinuance is sent ONLY after the recipient has failed to provide essential information by the designated date.