Current through September 24, 2024
In determining the resources of an HH/AG, only the following
shall be exempt:
(1) Home and Lot.
(a) Food Stamps Only. The home and
surrounding property which is not separated from the home by intervening
property owned by others is exempt. Public right of way, such as roads which
run through the surrounding property and separate it from the home, will not
affect the exemption of the property. The home and surrounding property,
(regardless of location), shall remain exempt when temporarily unoccupied for
reasons of employment, training for future employment, illness or
uninhabitability caused by casualty or natural disaster if the household
intends to return. If the household does not already own a home, the value of a
lot purchased to build a home on is excluded. If the new home is partially
completed, the value of it is excluded.
(b) AFDC Only. The home owned or being
purchased and occupied by the AFDC aid group and the property surrounding the
home which is not separated from the home by intervening property owned by
others is exempt. Public rights of way (such as roads and/or other public
easements) which run through the property surrounding the home do not affect
its classification as homestead property. Temporary absences from the home do
not affect the classification and/or exemption of the home if the aid group has
not acquired another home and intends to return to the exempted home at a
specified time. Proceeds from the sale of homestead property or from a recovery
due to a casualty/disaster loss of same, will remain exempt for three months
following receipt of said proceeds if the Aid Group expresses an intent to
reinvest in the same homestead or in a substitute homestead.
(2) Other Property - AFDC Only.
(a) Basic Maintenance Items. Excluded are
basic maintenance items essential to daily living such as clothing, furniture,
appliances, and other similar essential household goods and equipment of
limited value.
(b) Certain Real
Property. Real property which is not exempted as a homestead pursuant to
1240-01-04-.05(1)(b)
is exempt as a resource
if the recipient is making a good
faith effort to sell and signs an agreement to repay the AFDC grant received
during the period of exemption. Exemption of the property, not to exceed nine
(9) months, causes an overpayment
except when the
net proceeds plus other resources at the beginning of the
exclusion period are within the resource limit.
Repayment of the grant is made from the sale proceeds not to
exceed the total of the net proceeds. Any proceeds remaining after repayment of
the grant is considered as a resource.
If assistance is terminated for any reason prior to the end
of the nine-month exemption period, the assistance unit has an overpayment
subject to the usual collection procedures.
(c) Burial Plots. One burial plot for each
family member may be excluded from consideration as a
resource.
(3) Household
Goods and Personal Effects-Food Stamps Only. the value of household goods and
personal effects, including one burial plot per household member per ineligible
alien or disqualified household member.
(4) Insurance Policies - Food Stamps Only.
Cash value of life insurance policies shall not be considered in determining
eligibility or benefit level.
(5)
Exempt Vehicles
(a) Food Stamps Only. See
rule 1240-01-04-.10 regarding exempt
vehicles.
(b) AFDC Only. One
licensed and operable family motor vehicle in which the equity value is $1,500
or less. Equity is determined by deducting the amount of encumbrances from the
fair market value. Fair market value is the value listed in the N.A.D.A. Used
Car Guide. If a vehicle is not listed in the N.A.D.A., or if its value is
claimed to be different from the value listed, its value may be taken as that
stated by one reputable automobile dealer.
(6) Burial Policies, Burial Agreements, and
Burial Plots. These shall be considered exempt for resource purposes.
(7) Pension Funds. The cash value of pension
plans or funds shall be exempt. (Food Stamps Only): Excludes any funds in a
plan, contract, or account described in sections 401(a), 403(a), 403(b), 408,
408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value
of funds in a Federal Thrift Savings Plan as provided for in
5 U.S.C.
8439. Also the exclusion of any successor
retirement accounts that are exempt from Federal taxes.
(8) Income Producing Property - Food Stamps
Only
(a) Income producing property is defined
as:
1. Property which annually produces income
consistent with the prevailing rate of return for similar property in the area,
even if only used on a seasonal basis;
2. Property such as farm land and rental
homes (except certain vacation homes) which is essential to the employment or
the self-employment of an HH member;
3. Rental homes (including unattached
trailers or mobile homes not being used as the homeplace) which are used by the
HH for vacation purposes at some time during the year but which annually
produce income consistent with the prevailing rate of return for similar
property in the area, if not income producing, the equity value is
counted;
4. Work related equipment,
such as the tools of a tradesman or the machinery of a farmer, which is
essential to the employment or self-employment of an HH member; and
5. Installment contracts for the sale of land
or building if the contract or agreement is producing income consistent with
the prevailing rate of return. The exclusion shall also apply to the value of
the property sold under contract or held as security in exchange for a purchase
price consistent with the selling price of similar property in the
area.
(b) Determining
prevailing rate of return:
1. When it is
necessary to determine if property is producing income consistent with other
similar property in the area, the worker may contact local realtors, county
trustee's office, the Small Business Administration, Farmer's Home
Administration, or similar sources to determine the prevailing rate of return
in the area.
2. If the property is
not producing income consistent with similar property in the area, such
property would be counted as a resource.
3. Property exempt as essential to employment
need not be producing income consistent with its fair market value.
(9) Inaccessible
Resources - Food Stamps/AFDC. The cash value of resources which are not
currently accessible to the aid group or which cannot reasonably be brought to
a condition of current availability are exempted. Nonavailability of such
resources must be determined prior to approval and at each redetermination of
eligibility. Also, in both programs, resources whose cash value is not
accessible to the HH are exempt, such as, but not limited to: Security deposits
on rental property or utilities; Property in probate; Real property which the
HH is making a good faith effort to sell at a reasonable price and which has
not been sold; and jointly owned resources determined to be inaccessible. In
both programs, the worker may verify that the property is for sale and that the
household has not declined a reasonable offer. Verification may be obtained
through a collateral contact or documentation, such as an advertisement or
public sale in a newspaper of general circulation or a listing with a real
estate broker.
(a) Irrevocable Trust Funds
1. Food Stamps Only
(i) Any funds in a trust or transferred to a
trust, and the income produced by the trust to the extent it is not available
to the household shall be considered inaccessible to the household if:
(I) The trust arrangement is not likely to
cease during the certification period and no household member has the power to
revoke the trust arrangement or change the name of the beneficiary during the
certification period;
(II) Trust
investments made on behalf of the trust do not directly involve or assist any
business or corporation under the control, direction, or influence of a
household member; and
(III) The
funds held in irrevocable trusts are either:
I. Established from the household's own funds
if the trustee uses the funds solely to make investments on behalf of the trust
or to pay the educational or medical expenses of any person named by the
household creating the trust; or
II. Established from non-household funds by a
non-household member; and the trustee administering the funds is either:
A. A court, or an institution, corporation,
or organization which is not under the direction or ownership of any household
member;
B. An individual appointed
by the court who has court imposed limitations placed on his/her use of the
funds which meet the requirements of the provisions above.
(ii) Reserved for
future use
2. AFDC Only
(i) When a person applying for or receiving
AFDC has a trust which is claimed as inaccessible, he/she (or in the case of a
child, his/her parent or other relative caring for him/her) will have 60 days
from the date of application/redetermination or from the time the trust is
reported/discovered to attempt to have this resource made currently available.
The following are exceptions:
(I) If the trust
is established by a will, the terms of the trust will be followed as they
stand.
(II) If a trust is producing
regular income which is available to the beneficiary, the body of the trust
will not be considered a currently available resource, but the income will be
counted in the determination of eligibility/amount of payment.
(ii) As a condition of
eligibility, the grantee/relative must be willing to seek to have the trust
made currently available within 60 days. Failure to do so renders the
grantee/relative ineligible to be included as a member of the aid
group.
(iii) If the person has
followed through, assistance may be continued pending further orders of the
court. The court's decision, as written in a new or amended order, will be
binding. If all or part of the funds in trust are made available at any time,
they must be taken into account when received.
(b) Prepaid Burial Agreements or Burial
Trusts.
1. Food Stamps Only. Prepaid burial
agreements are a form of trust fund, and as such, their availability depends on
whether they are revocable or irrevocable. Any "pre-need" burial agreement
purchased 7/01/81 or later is excluded as a resource if the contract contains
the following statement on its face:
"This contract is irrevocable and the funds paid hereunder
are not nonrefundable."
In addition, contracts established before 7/02/81, which were
previously required to be revocable under state law, may be exempted if a
chancery, circuit, probate, or general sessions court declares them to be
irrevocable. Verification of the court's declaration must be obtained.
2. AFDC Only. Exclude one burial
agreement with equity value of $1500 or less (whether revocable or irrevocable)
per family member as a resource.
(c) Equipment - AFDC Only. Equipment used in
a self-employment enterprise used to produce income is considered as
inaccessible resource.
(d) Food
Stamps Only - Non-liquid assets against which a lien or security agreement has
been placed for a business loan are considered inaccessible. Such assets are
excludable only when the lien or security agreement with the creditor
specifically prohibits the household from selling the asset(s).
(10) Resources Excluded by Law.
The following types of payments are excluded by law from considerations as
income or as resources in the determination of eligibility/level of benefit:
(a) Food Stamps and AFDC.
1. Relocation Assistance Payments. Relocation
payments received under Title II of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 are excluded.
2. Alaska Native Claims Payments and Sac and
Fox Indian Claim Payments. Payments received under the Alaska Native Claims
Settlement Act, PL 92-203, §21 (a) and the Sac and Fox Indian Claims
Agreement PL 94-189 are excluded.
3. Payments for Certain Indian Tribes.
Payments derived from certain submarginal lands of the United States which are
held in trust for certain Indian Tribes are excluded.
4. Jobs Training and Partnership Act.
Payments received pursuant to the Jobs Training and Partnership Act
(JTPA).
5. Payments from
Disposition of Funds of Ottawa Indians. Payments made to the Grande River of
Ottawa Indians under PL 94-540 are excluded.
6. Payments Under Title IV of the Higher
Education Act.
Federal assistance provided by a program funded in whole or
in part under Title IV of the Higher Education Act is excluded. Such payments
include, but are not limited to, Pell grants, Supplemental Education
Opportunity (SEOG) grants, the PLUS Program grants, the National Direct Student
Loans (NDSL), the Byrd Honor Scholarships, and college work study funds.
7. Energy Assistance Payments.
(i) Food Stamps Only. Any payments made under
federal law for the purpose of energy assistance are not counted. To be
excluded, the payments must be clearly designated as energy assistance by the
entity providing the funds. Payments for the purpose of energy assistance made
through State and/or local funding are counted.
(ii) AFDC Only. Any payments or allowances
made by any federal, state or local organization for the purpose of energy
assistance are not counted.
(b) Food Stamps Only.
1. HUD retroactive tax and utility cost
subside payments issued pursuant to settlement of Underwood vs. Harris (Civil
No. 78-0469 D.D.C.) against HUD for the month in which payment was received and
for the following month.
2.
Payments of relocation assistance to member(s) of the Navajo and Hopi Indian
Tribes under PL 93-531.
3. Benefits
from Food Programs. The following benefits from food programs are excluded:
(i) WIC
(ii) Value of food stamps
(iii) Value of school lunches or other school
fund programs
(c) AFDC Only
1. Domestic Volunteer Service Act. Payments
received by volunteers for services performed in programs stipulated in the
Domestic Volunteer Service Act of 1973 as amended are excluded.
2. Payments from Crisis Intervention Program.
One-time payments to assist with utility costs from the Crisis Intervention
Program are excluded.
(11) Benefits from Food Programs - AFDC Only
(a) WIC
(b) Value of food stamps
(c) Value of school lunches or other school
food programs
(12)
Resources of Non-Household Members - Food Stamps Only. The resources belonging
to non-household members are excluded from consideration except for the
following excluded household members:
(a)
Ineligible Aliens/Individuals with Questionable Citizenship. Individuals who do
not meet the citizenship or eligible alien status. The resources of these
individuals shall be counted in their entirety to the remaining household
members.
(b) SSN Disqualified.
Individuals disqualified from participation in the program for failure to
provide or apply for an SSN. The resources of these individuals shall be
counted in their entirety to the remaining household members.
(c) Intentional Program Violation
Disqualified. The resources of these individuals shall continue to count in
their entirety to the remaining household members.
(13) Resources of Non-AG Members - Cash
Assistance and Food Stamps. Resources of individuals disqualified because of an
intentional program violation or an employment and training program sanction
are counted in their entirety to the remaining AG members.
(14) Agent Orange Settlement Payments - Cash
Assistance and Food Stamps. Agent Orange settlement payments are excluded as
income and resources for both programs. Lump sum payments received by survivors
of deceased veterans are also excluded.
(15) Allowances paid to children of Vietnam
veterans born with Spina Bifida are excluded as resources in the Food Stamp and
Cash Assistance programs.
(16)
Individual Development Accounts (IDA). Up to five thousand dollars ($5,000)
deposited in an Individual Development Account by a Families First recipient is
excluded as a resource as long as the individual continues to receive Families
First and maintains the funds in the IDA.
(17) Dedicated Accounts for SSI Children, set
up in accordance with Section 213 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 are excluded as resources.
(18) Other Exempt Resources.
(a) Earmarked Resources. Exempt any
governmental payments which are designated for the restoration of a home which
has been damaged in a disaster if the household is subject to a legal sanction
if the funds are not used as intended.
(b) Prorated Income. Resources, such as those
of students or self-employed persons, which have been prorated and counted as
income, are exempt.
(c) Indian
Lands. Indian lands held jointly with the tribe, or land that can be sold only
with the approval of the Bureau of Indian Affairs are exempt.
(d) Livestock and poultry consumed as home
produce.
(19) Handling
of Excluded Funds
(a) Excluded liquid assets
that are kept in a separate account and that are not commingled in an account
with non-excluded funds shall retain their exclusion as a resource for an
unlimited period of time.
(b)
Resources which have been excluded as prorated income that are commingled in an
account with non-excluded funds shall retain their exclusion for the period of
time over which they have been prorated as income (i.e., they will not be
counted as both income and resources during the same period of time).
(c) All other excluded monies which are
commingled with non-excluded funds shall retain their exemption for six (6)
months from the date they are commingled. After six (6) months all funds in the
commingled account other than those in (a) above are counted as a
resource.
(20)
Educational Savings Accounts - Food Stamps
(a)
Educational savings accounts under Section 529 of the Internal Revenue Code of
1986 qualified tuition programs, shall be exempt.
(b) Coverdell Education Savings Accounts
(Section 530 of the Internal Revenue Code) shall be exempt.
Authority: T.C.A. §§
4-5-201 et seq., 4-5-202, 14-8-104,
14-8-106, 14-27-104, 14-27-106, 71-1-105, 71-5-304, 71-5-306, 71-3-165, 7
U.S.C.A § 2014(g); 7 CFR
273.8(c)(e)(14),
273.8(e)(15)(h)(1)(iv),
273.9,
273.9(b)(1)(v),
273.10,
273.11(c), 45 CFR
233.20, PL 98-369§2625, PL 98-369§2626, PL 97-35, and
PL
110-246, Title IV § 4104(b).
