Current through Register Vol. 56, No. 18, September 16, 2024
(a) The resource
provisions contained in this section shall apply to AFDC-related applicants and
beneficiaries under this chapter.
(b) Available resources shall include cash
and other forms of assets that can produce income immediately obtainable to
meet the needs of the eligible unit, including:
1. Real or personal property that is within
the control of one or more members of the eligible unit, or to which such
members may have a valid property interest; and
2. Benefits and other contributions of
support which are available to one or more of the members of the eligible
unit.
(c) Resources
described in this rule shall be either countable or exempt.
1. All nonexempt property shall be counted in
the determination of resource eligibility.
2. Exempt resources shall not be subject to
any requirement for liquidation. When any resource is not or is no longer
exempt, it shall be evaluated as a countable resource in accordance with this
rule and considered in the determination of eligibility under this
chapter.
(d) Countable
resources shall be evaluated by their equity value, which is the current market
value of the resource, less any encumbrances.
(e) The total equity value of all countable
resources (including savings) shall not exceed the applicable amount specified
in 10:70-5.1.
(f) Bank accounts in which the names of the
owners are stated in the conjunctive ("and" accounts) shall be presumed to be
in the possession of the eligible family member, in proportion to the number of
owners listed on the account. This presumption may be rebutted if the eligible
family member and/or the other owners of the account demonstrate to the
Division that actual ownership of the funds is in a different proportion. If it
can be demonstrated that the funds in the account are not legally owned by an
eligible family member, such funds shall not be counted toward the resource
maximum specified in
10:70-5.1.
(g) Bank accounts in which the names of the
owners are stated in the disjunctive ("or" accounts) shall be presumed to be in
the complete possession of the eligible family member, regardless of the source
of the funds in the account. This presumption may be rebutted if the eligible
family member and/or the other owners of the account demonstrate to the
Division that actual ownership of the funds is in a different proportion, based
on evidence of contributions by each party to the funds on deposit. If it can
be demonstrated that the funds in the account are not legally owned by an
eligible family member, such funds shall not be counted toward the resource
maximum specified in
10:70-5.1.
(h) Exempt resources shall not be subject to
liquidation requirements. At the time any such resources are determined no
longer to be exempt, they shall be evaluated in accordance with (a) through (g)
above. The exempt resources of an eligible unit shall be as follows:
1. Real property (house) owned by the
eligible unit, used as a home by the eligible unit, together with so much of
the land on which the house stands as is reasonably necessary for the
maintenance of the house. Such property may remain in exempt status during the
temporary absence of the entire eligible unit for a period of up to four
months, at which time the Division shall review the status, and, if it is
demonstrated to the Division's satisfaction that the eligible unit will return
from their absence to use the property as their home within the four months
following the initial period, may allow the property to remain in exempt status
for an additional four months. Absence through the entire four-month or
eight-month period shall be deemed to be permanent and shall result in the
property being removed from exempt status;
2. Personal property which is used or is
likely to be used by the eligible unit, including:
i. House furnishings and clothing in regular
use. House furnishings and clothing in storage may be deemed to be exempt, if a
reasonable plan for their use exists; and
ii. Personal effects if regularly used or of
small intrinsic value. Personal effects of larger value which are not regularly
used and are not essential to the physical health and safety of the eligible
unit shall not be exempt;
3. One motor vehicle, the equity value of
which does not exceed $ 9,500. Any excess equity value of a motor vehicle and
the full equity of any other motor vehicle shall be countable toward the
resource limit specified in
10:70-5.1.
i. The equity value of the vehicle shall be
determined by the value of such vehicles as indicated in the Kelley's Blue
Book, internet website
http://www.kbb.com. The basic value of the
vehicle shall not be increased by adding the value of low mileage or other
factors such as optional equipment. If the vehicle is a new vehicle, which is
not listed on the Kelley website, the Division shall determine the wholesale
value by some other means such as, but not limited to, contacting a car dealer
that sells that make of a vehicle.
ii. If a vehicle is especially equipped with
apparatus for the handicapped, the apparatus shall not increase the value of
the vehicle. The Kelley Blue Book internet website value shall be assigned as
if the vehicle were not so equipped;
4. Livestock, machinery, tools, equipment and
stock-in-trade which serve to produce some net income in cash or in kind or
which serve as an incentive for self-help. Livestock or property owned or used
by a child in connection with a group or school activity, such as 4-H, shall
also be exempt;
5. Any asset, real
or personal, the liquidation of which would produce no net revenue to the
eligible unit;
6. Resources
designated for special purposes, as follows:
i. Relocation adjustment payments which are
made pursuant to the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 ( P.L. 91-646) by public agencies and area
development agencies engaged in urban renewal or by housing development
projects;
ii. Any Highway
Relocation Assistance paid under the Federal-Aid Highway Act of 1968;
iii. For any household participating in the
Food Stamp Program of the U.S. Department of Agriculture, the value of the
coupon allotment; or
iv. Funds held
in trust for a member of any Indian tribe under Public Law 92-254 or 93-134, or
funds which are tax-exempt positions as payments made pursuant to Public Law
92-203, the Alaska Native Claims Settlement Act;
7. Loans for specific purposes and personal
loans, as follows:
i. Loans for specific
purposes, such as loans and grants which are not to be used to meet current
living costs and which are held and used in accordance with the conditions of
the loan. For example: loans made by the Farmers Home Administration, U.S.
Department of Agriculture, under Title III of the Economic Opportunity Act, and
loans made by the Farmers Home Administration under provisions in Title V of
the Housing Act of 1949, as amended; or
ii. Personal loans, when such loans are
evidenced by a document, signed by the client and the lender, and which state
the amount of the loan and terms of repayment;
8. Funds received in repayment of verified
costs of collection of a pending claim when the costs were incurred during a
period of receipt of AFDC-related Medicaid;
9. Burial plots (limited to one for each
member of the eligible unit) and bona fide funeral agreements to the extent
that the equity value of any agreement does not exceed $ 1,500 for each member
of the eligible unit.
i. Burial plots are
conventional gravesites, crypts, mausoleums, urns or other repositories which
are customarily and traditionally used for the remains of deceased
persons.
ii. Funeral agreements are
contractual arrangements to provide for the costs connected with burial,
cremation, or other funeral arrangements; and
10. Prepaid irrevocable funeral trust funds,
which are funds in an irrevocable trust or other irrevocable arrangement which
are available for funeral and burial expenses, held in an irrevocable funeral
contract and irrevocable funeral trust, or an amount in an irrevocable trust
which is specifically identified for funeral and burial expenses.
(i) Members of the eligible family
shall take all necessary and reasonable action to avail themselves of funds for
support from others who owe or may owe money to them or who are holding funds
for them. Any funds made available by such action shall be considered as income
to the eligible family, except as follows:
1.
The county board of social services shall not terminate eligibility when the
proceeds from the sale of an exempt resource are promptly reinvested in another
exempt resource of the same type. Funds designated by the client as being
reserved for such reinvestment, including any interest accrued during the
period, may be held for up to three months, provided the funds are held in
escrow or are otherwise unavailable for daily living expenses. The three-month
period may be extended upon written approval of the Division of Medical
Assistance and Health Services.
(j) When a trust fund exists for a member of
the eligible family, the county board of social services shall determine
whether or not the funds are currently accessible.
1. If accessible, the funds represent a
source of funds for support and shall be considered in determining
eligibility.
2. If not accessible,
the following shall apply:
i. When a trust
fund is not currently accessible and it exists at the time of application, the
client shall, as a condition of eligibility, make a bona fide presentation of a
petition to the appropriate court for release of the funds for current and
future support. The agency shall assist the client if necessary.
ii. When a trust fund is not currently
accessible and the trust fund came into being during the term of the assistance
case, the agency shall present a petition to the appropriate court for release
of funds for current and future support. The client shall, as a condition of
continuing eligibility, provide whatever cooperation as may be necessary in the
presentation of the petition.
