Property Determination

After Sneede procedures are applied, some family members may be property eligible, while others are ineligible due to excess property.

• If one or more MBUs are ineligible due to excess property, determine if linkage still exists for other family members.
• Do not reallocate property once an MBU is determined to be ineligible for excess property.

Property Allocations

Follow these rules when allocating net nonexempt property:

Married Couple With Only Mutual Children

• Combine the couple's total property.
• Allocate equal portions to each spouse and each mutual child.

Stepparent Household

• Each spouse owns:
  • His/her separate property, and
  • One half of their community property.
• The property of each spouse is then equally allocated to:
  • Self.
  • Spouse.
  • Natural/adoptive children.

Unmarried Couple With Mutual Children

• An unmarried couple has no community property.
• Each parent's separate property is equally allocated to:
  • Self, and
  • His/her children.

When Only One Property Exemption Applies

Whenever property regulations specify that only one item can be exempt (e.g., a car), and the MFBU owns more than one, the client may choose which to exempt.

• Under Sneede, it may not be to the MFBU's advantage to exempt the item of greatest value, depending on ownership, who the property will be allocated to, and which child(ren) have their own separate nonexempt property.
• If a different exemption would allow certain individuals to be eligible, the client will have to determine which to choose.
• If the client doesn't choose, the EW must exempt the item of greatest value.

Exemptions for Unmarried Couples

Each unmarried partner receives a full set of property exemptions because unmarried persons have no financial responsibility for each other.

• Each unmarried partner is allowed one principal residence exemption.
• An unmarried parent may give his/her property exemptions to his/her separate or mutual child if the parent doesn't want or need the exemption.
• A mutual child is not allowed two sets of exemptions.

Exemption for Single/Married Parent(s)

A single parent or a married couple is allowed only one set of exemptions.

Exemptions for Other Caretaker Relative

A nonparent caretaker relative in the same MFBU with the child(ren) for whom care is provided is allowed one set of exemptions.

Note: The caretaker relative cannot give this exemption to the child(ren), as no financial responsibility exists.

The children (all together) are allowed only one set of exemptions.

Changing Exemptions

Usually, a request to change exemptions is effective the month following the month of request. However, if an MFBU or MBU becomes property ineligible and requests a change of exemptions within 10 days of the mailing date of the NOA, the change may then be effective the first month in which the adverse action occurred.

Jointly Held Assets

Determining ownership of jointly held assets within and outside of the MFBU can be critical to certain Sneede property determinations.

Presume equal ownership of property which is owned jointly with other members of the MFBU.

If the client who holds legal title to the property (either solely or jointly) claims that the property belongs to someone else (either within or outside of the MFBU):

• The client must provide evidence which clearly substantiates his/her claim.
• Signed affidavits alone are NOT sufficient evidence.
• When the joint owners are in the same MFBU, it is not necessary to transfer legal title to the actual owner.

Example 1Example 1A child has a bank account which the parents established for the child's future education. The parents are listed on the account with the child; there is no trust document to govern use and access to the funds. Since all three members of the MFBU have access to the bank account, presume equal ownership of the funds and divide it equally among the three of them unless the client can provide proof of other ownership percentages.

Example 2  Example 2  The MFBU includes a father and his teenage son. On the application they list the son as the sole owner of a second car. However the car registration lists only the father's name. The father states that his son paid for the car with his own money, but for insurance purposes the car is only registered in the father's name. They present a bill of sale which shows that the son purchased the car; and, a bank statement which shows the withdrawal from the son's savings account. The verification clearly establishes that the son is the actual owner. The EW will copy all proof and document the case to show that the son's sole ownership of the car is established. Note: There is no need to actually transfer this car to the son's name, as he has established it is his own property. To do so would be disadvantageous to the MFBU. This only applies to property owned within the MFBU. 

Examples of Manual Sneede Property Determinations

Example 1Example 1

Example 2Example 2

Related Topics

Sneede v Kizer