Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any single permanent resident of New Jersey
who is 65 years of age or older or who is between 18 and 65 and is receiving Social Security Title II
disability benefits must have an annual income of less than $ 28,769 to be eligible for the Lifeline
Programs.
(b) Any married permanent resident of New Jersey who is
65 years of age or older or who is between 18 and 65 and is receiving Social Security Title II disability
benefits, and his or her spouse, must have a combined annual income of less than $ 35,270 to be eligible for
the Lifeline Programs.
1. An applicant and spouse shall be considered
separated when each maintains a separate residence and the applicant does not have access to or receive
support from the spouse's income.
i. Any support payment received by the
applicant, for the sole benefit of the applicant, shall be considered as income for eligibility
purposes.
2. An applicant and spouse shall be
considered separated when the spouse has been institutionalized in a long-term care facility, either skilled
or intermediate, or in a State or county psychiatric hospital at least 30 consecutive days prior to
application.
(c) All income, from whatever source
derived, is considered when determining eligibility for the Lifeline Programs.
1. All income, taxable and nontaxable, is to be included. Examples of
possible sources of income, which shall be gross amounts unless otherwise noted, are as follows:
i. Social Security benefits paid to or on behalf of the
applicant;
ii. Veterans benefits;
iii. Disability benefits, whether public or private;
iv. Salaries;
v.
Wages;
vi. Bonuses;
vii. Commissions;
viii.
Fees;
ix. Dividends;
x. Interest taxable and nontaxable;
xi. Capital gains;
xii.
Royalties;
xiii. Bequests and Death benefits;
xiv. Support payments;
xv.
Unemployment benefits;
xvi. Pensions and Black Lung
Benefits;
xvii. Annuities, whether contributory, noncontributory,
qualified or nonqualified;
xviii. Retirement benefits including
distribution from Individual Retirement Arrangements (IRAs), such as Traditional, Simple, Roth, or
Educational, and benefit payments from foreign countries;
xix.
Net business income;
xx. Fair market value of prizes and
awards;
xxi. Gambling and lottery winnings; and
xxii. Net rental income after expenses.
2. Sources of income which are excluded in considering eligibility for the
Lifeline Programs are as follows:
i. Benefit amounts received under the
Lifeline Programs;
ii. Benefits received under New Jersey
Homestead Rebates;
iii. Proceeds from spouse's life
insurance;
iv. Capital gains of up to $ 250,000 for a single
person or up to $ 500,000 for a married couple on the sale of a main home which is also excluded from income
taxation by IRS and the New Jersey Division of Taxation;
v.
Stipends from the Volunteers in Service to America (VISTA), Foster Grandparents programs, Workforce 55+
program and programs under Title V of the Older Americans Act of 1965;
vi. Agent Orange payments;
vii.
Rewards involving health care fraud or abuse which apply to
10:49-13.4;
viii.
Holocaust reparations;
ix. Proceeds from viatical
settlements;
x. Proceeds received by the beneficiary of a special
needs trust as described in N.J.A.C.
10:167D-4.2(d);
xi. Rollovers from one tax deferred financial instrument, such as pension,
annuity, IRA, insurance contract or other retirement benefits, to another tax deferred financial
instrument;
xii. 1035 Tax Free Exchanges of a policy or contract
handled between two insurance companies; and
xiii. An insurance
policyholder's original contributions if demutualization of the policy occurs and, in that case, only the
earnings on the policy would be counted.
(d) To be considered a special needs trust to be excluded as income for
determining eligibility for the Lifeline Programs, the trust shall include the following provisions:
1. The trust shall specifically state that the trust is for the sole
benefit of the trust beneficiary;
2. The trust shall specifically
state that its purpose is to permit the use of trust assets to supplement, and not to supplant, impair or
diminish, any benefits or assistance of any Federal, State or other governmental entity for which the
beneficiary may otherwise be eligible or which the beneficiary may be receiving;
3. The trust shall specifically state the age of the trust beneficiary,
that the trust beneficiary is disabled within the definition of
42 U.S.C. §
1382c(a)(3), and whether the trust beneficiary is
competent at the time the trust is established;
4. The trust
shall specifically identify, in an attached schedule, the source of the initial trust property and all assets
of the trust;
5. If the trust makes provisions which are intended
to limit invasion by creditors or to insulate the trust from liens or encumbrances, the trust shall state
that such provisions are not intended to limit the State's right to reimbursement or to recoup incorrectly
paid benefits;
6. The special needs trust shall state that it is
established by a parent, grandparent, or legal guardian of the trust beneficiary or by a court;
7. The trust shall specifically state that it is irrevocable. Neither the
grantor, the trustee(s), nor the beneficiary shall have any right or power, whether alone or in conjunction
with others, in whatever capacity, to alter, amend, revoke, or terminate the trust or any of its terms or to
designate the persons who shall possess or enjoy the trust estate during his or her lifetime;
8. The trustee shall be specifically identified by name and address. The
trust shall state that the original trust beneficiary cannot be the trustee. The trust shall make provisions
for naming a successor trustee in the event that any trustee is unable or unwilling to serve;
9. The trust shall specifically state that the trustee shall fully comply
with all State laws, including the Prudent Investor Act,
3B:20-11.1 et seq. The trust shall provide that the trustee
cannot take any actions not authorized by, or without regard to, State laws. If the trust gives the trustee
authorization or power not provided for in the Prudent Investor Act, an accompanying letter shall provide an
explanation for each such authorization or power;
10. The trust
shall specifically state that the trustee shall be compensated only as provided by law in accordance with
N.J.S.A.
3B:18-2 et seq. If the trust identifies a guardian, the trust shall
specifically identify him or her by name. A guardian shall be compensated only as provided by law;
11. The trust shall specify that a formal or informal accounting of all
expenditures made by the trust shall be submitted to the appropriate eligibility determination agency on an
annual basis;
12. The State shall be given advance notice of any
expenditure in excess of $ 5,000, and of any amount which would substantially deplete the principal of the
trust. Notice shall be given to the Office of State Health Insurance for the Aged & Disabled, Division of
Aging Services, PO Box 715, Trenton, NJ 08625-0715, or any successor agency, 45 days prior to the
expenditures; and
13. New Jersey rules and laws do not permit a
trust to create a will for an incompetent or a minor. The money creating the trust, any additions and
interest accumulated, cannot be left to other parties, but shall pass by intestacy. The trust shall not
create other trusts within it.
(e) Upon request by the
Department, the applicant must be able to document the amounts reported on the eligibility application, and
will be required to submit photocopies of his or her Federal, State and city income tax return and other
acceptable evidence.
(f) Eligibility for the Lifeline Programs is
conferred based upon annual income for the current calendar year, which is estimated at the time of
application. Previous year income information is used as a gauge and supplements estimates of current income
to determine current eligibility. However, if previous income exceeds the standard, but current year income
is expected to fall within legal limits, an initial applicant may estimate current year income for the
purpose of establishing eligibility.
(g) Since eligibility is
based upon actual annual income, if the actual annual income for the current calendar year exceeds the income
standard, the person will become ineligible for the entire calendar year.
(h) The Department shall take necessary action to recover the full amount
of payments made on behalf of beneficiaries during an ineligible period, when appropriate.
(i) Beneficiaries are required to notify the Department immediately if
their current year income exceeds the established income standard.
(j) The income eligibility limits shall increase annually on January 1 by
the amount of the maximum Social Security benefit cost-of-living adjustment for that year for single and
married persons, respectively, in accordance with
42
U.S.C. §
415(i)(2)(D), incorporated herein by
reference. The Commissioner shall publish the new income limits annually in the New Jersey
Register.
