Food stamps, officially known as the Supplemental Nutrition Assistance Program (SNAP), help people with low incomes buy food. To get food stamps, you have to meet certain requirements. One of these requirements involves what you own, which are called “assets.” But not everything you own counts against you. This essay will break down what kinds of assets are “countable” when applying for food stamps, which means they’re considered when figuring out if you’re eligible.
What Exactly ARE Countable Assets?
Countable assets are things you own that have a cash value and can be used to help pay for food. This means if you sold them, you’d get money. The value of these assets can affect whether you get food stamps and how much you get. There are limits on how much in countable assets a household can have to qualify for SNAP. These limits vary depending on the state and the household’s situation (for example, if someone in the household is elderly or disabled).
Cash and Bank Accounts
One of the most straightforward countable assets is cash. This includes actual money you have on hand, like bills and coins. It also includes money in your bank accounts. The total amount of cash and money in your checking and savings accounts is considered. This is pretty easy to understand – if you have a lot of money in the bank, you may not need food stamps as much.
Here’s how banks usually work with these kinds of assets:
- The bank sends a statement.
- The statement shows the account’s current balance.
- This balance is what is checked and used for the SNAP application.
- The SNAP application may also ask about past transactions.
The application will often request statements to prove the amount of money you have available. If you have a joint account, they’ll generally count your share of the money, not necessarily the entire account. Be ready to provide the necessary paperwork to show how much you have.
The state might want to review your account information for the past few months. If the bank account is under review, the state might ask for the documentation, such as bank statements. This will help them understand the details about your account.
Stocks, Bonds, and Mutual Funds
If you own stocks, bonds, or mutual funds, these are typically considered countable assets. These are investments that can be converted into cash. Their value is assessed based on their current market price. For example, if you own stock in a company, the value used for the food stamp application will be the current price that the stock is trading at.
Figuring out the value can vary. Here is how it might break down:
- Stocks: The price listed by market updates.
- Bonds: The price listed by the type of bond.
- Mutual Funds: The net asset value (NAV) per share.
- Other investments: Investments may need an estimated value from a professional.
You’ll usually need to provide statements from your brokerage or investment firm to prove the value of these assets. The state will add the value of each investment type together to determine your total investment value for SNAP. This is an area where it’s important to be accurate. Make sure to have all your investment information ready when applying.
Generally, your state will request documentation from your investment accounts as part of the application process to confirm the investments. It’s vital to report all of your investments when applying for food stamps to ensure a fair and accurate evaluation.
Real Estate (Other Than Your Home)
While your primary home is usually *not* counted as an asset for food stamps, other real estate that you own *is* considered. This includes rental properties, land you own, or any other property that isn’t your primary residence. The value is based on its current market value, minus any outstanding debts you owe on the property, such as a mortgage.
Here’s how it might be assessed:
- Market Value: This is what the property is worth if you sold it today.
- Debts: This includes mortgages and other loans secured by the property.
- Net Value: Market Value – Debts = Net Value.
For example, if your rental property is worth $200,000 and you owe $150,000 on the mortgage, the countable asset value is $50,000. The state will want proof of this. You’ll probably need to provide property appraisals, mortgage statements, and any other documentation related to the property. This can be a complex part of the food stamp application process, so be prepared with all the relevant documents.
The main thing is to give full and accurate information. It is best to speak to a housing professional to help you with the process if you are confused.
Vehicles
The rules about vehicles are a little tricky. Generally, the value of a vehicle *is* counted, but there are exceptions. Usually, one vehicle is excluded from the asset limit. If you have more than one vehicle, the excess vehicle(s) are counted. The value is determined based on the vehicle’s current market value, which you can often find using online tools like Kelley Blue Book (KBB).
There are a few things to note here:
- The vehicle’s value can be determined differently based on the state.
- A vehicle is excluded for the person who is in the household.
- The state will ask questions about the vehicle.
- Some vehicles might be excluded completely.
The state might want to confirm information with the Department of Motor Vehicles to make sure that what you say is correct. You will likely need to provide documentation, such as vehicle registration and proof of the vehicle’s current market value. It’s essential to be honest and accurate about any vehicles you own when applying for food stamps.
The state will also look at the vehicles’ value, so get ready to provide the relevant details.
Life Insurance Policies (With a Cash Value)
If you have life insurance policies, and they have a cash value (meaning you can borrow money against them or cash them out), then that cash value is usually a countable asset. The amount counted is the current cash surrender value, which is the amount you would receive if you canceled the policy.
Here’s a quick view:
| Type of Policy | Countable Asset? | What’s Counted |
|---|---|---|
| Term Life | Usually No | N/A |
| Whole Life/Universal Life | Yes | Cash Surrender Value |
Term life insurance policies, which only pay out if you die within a specific time, usually don’t have a cash value and aren’t counted. But whole life and universal life policies often do have a cash value. You’ll need to provide the insurance policy information and a statement from the insurance company to prove the current cash value.
Be prepared to provide documentation from the insurance company to verify the cash value. Remember to accurately report this information on your application.
Other Less Common Assets
There are some other assets that may be considered countable, depending on the state and specific circumstances. These can include things like:
- Certain trusts: Some trusts are considered countable assets, depending on how they are set up.
- Loans you have given to other people: The amount you are owed is considered an asset.
- Business property or equipment: If you own a business, the value of certain business assets may be counted.
- Other investments that can be converted to cash: If you have other investments that are not stocks or bonds.
The rules can be complex, and it’s always a good idea to clarify any questions you have with your local food stamp office. They can give you the most accurate information for your specific situation. Make sure to report all of your assets to get accurate results.
It’s always a good idea to check with your local SNAP office to find out the exact rules for your state, as they can change. Providing accurate information about your assets helps ensure that you get the help you need while following the rules of the program. The better informed you are, the easier it is to navigate the application process.