Effective Date - Oct 1, 2007

806 Treatment of Assets

Child Care - No requirement

Food Stamps - 7 CFR 273.8; ARW, Chapt. 1, Section 4

POWER - W.S. 42-2-109, W.S. 42-2-202

Use the following asset table to determine how an asset is to be treated when determining eligibility.

A. See Section 1000 for further information concerning exempt assets under Public Laws.

B. see Section 507 for treatment of assets of excluded individuals for Food Stamps and POWER.

C. see Section 606 for treatment of assets for a sponsored alien.

D. Use the cash value, unpaid principal or FMV less legal encumbrances to determine the equity value of the nonexempt asset which is then used to determine eligibility.

E. Understand the asset windows will capture the following:

1. Liquid assets which are readily available and easily converted to cash, i.e., checking, savings, C.D.s, etc.

2. Other assets which are available but are not easily converted to cash, i.e., a home, contracts, land, real property, life insurance, boat, camper, etc.

3. Vehicles to include automobile, motorcycle, etc.

F. DO NOT consider the assets when determining eligibility for Child Care.

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NOTES:

TYPE OF ASSET

TREATMENT

CODING

An “X” under the program column indicates the statement applies, as written, to that program.

Advanced Earned Income Tax Credit

(AEITC)

Exempt in the month of receipt and the following month.

Any remaining is nonexempt in third month.

Agreement in escrow

Count the balance and subtract any legal encumbrances.

Annuities

Count any portion available to the client.

Antiques/Collectibles

FS:

Exempt.

PO:

Count the average of two appraisals/estimates of the FMV and subtract any legal encumbrances

Asset replacement

(See Insurance settlement also)

Exempt any governmental payments which are designated for restoration of a home damaged in a disaster when the assistance unit must legally use the funds for that purpose.

Bona fide effort to sell

Refer to Home and Land, buildings and other real property for treatment.

Burial funds

$1,500

Exempt $1,500 for each person in the assistance unit when funds are in a bona fide burial agreement, burial trust or contract (does not apply to bank accounts, savings, etc.).

Burial plot

Exempt one for each person in the assistance unit.

Cash gifts

Exempt the amount indicated under the program per quarter and per individual.

$50

CG-EX

$50

CG-EX

Certificates of Deposit

Count cash value after deducting any legal encumbrances.

Checking accounts

(Also see Savings of a dependent child)

FS:

Count cash value after deducting any legal encumbrances;

Count the cash value after deducting any deposits used as income in the same month.

Count the cash value after deducting any outstanding checks written that have not cleared.

PO:

Count cash value after deducting any legal encumbrances;

Deduct any outstanding checks written and delivered to the payee prior to the first of the month that have not cleared.

X
PC

Commingled funds

FS:
Self-employment monies that are being held in an account that have been prorated as income would be excluded from assets, educational loans for six months when commingled with nonexempt funds.

DO NOT count other exempt funds for a period of six months when commingled with nonexempt funds.

PO:

Do not exempt funds when previously exempt funds are commingled with nonexempt funds.

X
GR

Contract for deeds and notes

FS:

Consider installment contracts for the sale of land, buildings or vehicles exempt if the contract or agreement is producing income consistent with its fair market value.

PO:

Count the unpaid principal balance and subtract any legal encumbrances.

Crime Victims Compensation payments

Exempt payments until the total amount paid is sufficient to fully compensate the individual for losses suffered as a result of the crime.

Earned Income Tax Credit (EITC)

Exempt the EITC in the month received and the following month.

Any remaining portion is to be considered nonexempt in the third month.

FS:

Exempt the EITC for 12 months as long as the individual was receiving FS at the time of receipt and continuously receives FS during the 12 month period without a 30 day break-in-aid.

Educational Funds

Exempt educational loans, grants and scholarships which are designated for educational purposes only and not commingled with other nonexempt funds.

See Sect. 505

Home

Also see Land, buildings and other real property

Exempt the home, including all connected land and buildings, when it is occupied by the assistance unit.

FS:

Consider the home exempt when temporarily unoccupied for reasons of employment, training, for future employment, illness or uninhabitability caused by a casualty or natural disaster if the assistance unit intends to return.

Household furnishings/goods and personal effects

FS:

Exempt all household furnishings/goods and personal effects.

PO:

Exempt those items determined to be essential for day -to-day living.

HUD escrow account

Exempt when funds remain in the account as inaccessible.

IIM account (restricted)

(See Sect. 1000)

Exempt IIM’s when only moneys listed under P.L. are deposited and BIA authorization is required to withdraw or use the deposited funds..

Income producing property

FS (including farm land and equipment):

1. Exempt property annually producing income consistent with its FMV even if only used on a seasonal basis. If the property is being rented for a price that is comparable to other rental properties in the area, it is producing income consistent with its FMV for rental purposes and would be excluded from assets.

2. Exempt property essential to the self-employment of an assistance unit member engaged in farming up to one year from the date the farm self-employment is terminated.

3. Exempt property related to maintenance or use of an income producing vehicle or a vehicle necessary to transport a disabled assistance unit member.

PO:

Exempt income producing property of a self- employed client, excluding real property. If unemployed, s/he must be reasonably expected to return to that line of work for the exemption.

Inheritance (property)

Count the FMV less legal encumbrances when it is still available the first day of the month following the month of receipt.

X
GR

Inheritance (cash)

FS:

Count the cash when it is still available the first day of the following month.

PO:

Cash is income in the month received and the lump sum policy applies.

X
GR

Installment Notes/Contracts

See Contract for Deeds and Notes.

X
NO

Insurance settlement for damaged property

(See Section 1209)

FS:

Nonexempt asset in the month of receipt.

PO:

1. Exempt money received from an insurance settlement for the repair or replacement of property which is lost, damaged or stolen for 90 days or until the client makes a decision not to repair or replace the property, whichever happens first.

2. Require the funds to be maintained separately from other funds and not commingled.

3. Exempt the interest earned on this money.

4. Consider the entire amount or the excess a lump sum payment (income) when the insurance settlement is not used for or exceeds the cost of the replacement or repair.

X
GN

Joint bank account w/non-assistance unit member

DO NOT exempt the funds in the month following the month of deposit when the client can legally withdraw the funds.

X
JA

Land, buildings and other real property

(See Income producing property also)

FS:

1. Exempt real property when verified the assistance unit is making a bona fide effort to sell at a reasonable price as verified by evidence listed in Section 303.

2. Exemp tthe value of a lot on which the assistance unit plans to build a home and a home being constructed when the assistance unit does not own or is not currently buying another home

PO:

Count the average of two appraisals/estimates of the FMV and subtract any legal encumbrances.

X
RP

X
HS

Life estate

FS:

Exempt the home/property if it is occupied by the original owner and there is a life estate.

Life insurance

FS:

Exempt the cash surrender value.

PO:

Use the cash surrender value.

X
CV

Livestock, Farm Machinery, Tools

FS:

Exempt if used for self-employment or there is a reasonable expectation the self-employment will resume within 12 months of last use.

Exempt as income producing property essential for self-employment and continue the exemption for FS for up to one year from the date the self-employment is terminated.

PO:

Exempt if used for self-employment or there is a reasonable expectation the self-employment will resume within 12 months of last use.

Count the average of two appraisals/estimates of the FMV and subtract any legal encumbrances when not used for self-support.

X
NA
TO
FA

X
NA

X
FA
OT

Loans

FS:

When the household is the lender:

1. Exempt the unpaid loan balance if the note cannot readily be liquidated or if the note has no FMV because it cannot be sold.

2. The principal amount on the loan payment is considered a nonexempt asset.

Note: If interest is being paid, the interest is considered unearned income not an asset.

When the client is the borrower:

1. Exempt the loan proceeds unless the funds are placed/transferred to an accessible asset.

PO:

A non-bona fide loan is income in the month of receipt and any remaining amount is an asset the first of the following month.

Lump sum

(See Section 1209)

FS:

Nonexempt asset in the month received. Apply the 10-10-10 provision counting any balance after the month of receipt.

PO:

A lump sum is income in the month of receipt.

X
LS

Mineral, water and gravel rights

FS:

Count the FMV and subtract any legal encumbrances, IF the rights are not an excluded asset.

PO:

Count the FMV and subtract any legal encumbrances. Accept total of one year’s lease/royalty payments as FMV.

Older Americans Act, Title V payments

Nonexempt.

See Section 1000 for programs under the Act and treatment of income.

PASS account

(SSI)

FS:

Exempt.

PO:

Exempt income and assets of an SSI recipient.

Property used for self-employment

See Section 200 for definitions of Property and Real Property.

Exempt property essential to the self-employment business, excluding real property.

Also see “Income producing property” and “Livestock, Farm Machinery, Tools”.

X
NA

Reimbursement for medical expenses

(See Section 907 for FS)

PO:

1. Exempt reimbursement for medical expenses when the client has already paid the bill.

2. Consider the remaining reimbursement as an asset on the first day of the month following the month of receipt.

Also see Income Table for treatment of reimbursements.

X
OT

Retirement/ Pension plans/funds

FS:
Exempt until paid to the client.

Exempt pension/retirement funds not available.

IRA, KEOGH - Count the cash value, minus any penalty for early withdrawal, stated by the employer, company, or financial institution when the client has the authority to withdraw the funds.

PO:
Available - Count the cash value stated by the employer, company, or financial institution when the client has the authority to withdraw the funds.

Retroactive RSDI and SSI payments

(See Section 1209 for FS)

PO:

Exempt income and assets of an SSI recipient from POWER. (RSDI is nonexempt and considered a lump sum payment (income) when retroactive.)

X
GN

Reverse mortgage (See Income Table)

Count loan proceeds retained by the client beyond the month in which the funds are received as an asset the first of the following month.

X
OT

Savings accounts

Count cash value after deducting any legal encumbrances.

Savings bonds

Count the current cash value of U.S. Savings Bonds and Treasury Notes. (The value can be obtained by contacting a local bank.)

X
BO
SB

Savings of a dependent child

PO:

Exempt savings of a dependent child who is a full time secondary student under the age of 18 when deposited from the child’s earned income and designated for future educational purposes and not commingled with nonexempt funds.

X
GN

Stocks, mutual fund shares, money market certificates, bonds

Count the current market value (CMV) as of the month obtained or received.

Understand the closing price on the last business day of the preceding month is the CMV. The value can be obtained from the published quotations in daily newspapers or local securities firm.

X
MM
OT

Trust Funds

FS:

Exempt any funds in trust, transferred to a trust and the income produced by the trust to the extent it is not available, if:

1. The trust arrangement is not likely to cease and no assistance unit member has the ability to revoke the trust arrangement or change the name of the beneficiary during the certification period.

2. The trustee administering the funds is other than an assistance unit member.

3. 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 an assistance unit member.

4. Funds held in an irrevocable trust are either established from the assistance unit’s own funds and invested by the trustee on behalf of the trust or to pay educational or medical expenses of any person named in the creation of the trust OR established from nonhousehold funds by a nonhousehold member.

PO:

Use the cash value when the applicant/recipient has a legal interest or has the legal ability to make the funds available to meet day-to-day needs or the funds can be made available upon request.

Vehicles (Licensed)

This category includes: cars, motorcycles, vans, trucks and other vehicles used for transportation.

REMEMBER - A FS assistance unit consisting of only POWER and/or SSI recipients is categorically asset eligible.

Process I - Use to determine possible exemption of vehicles:

1. Exempt any vehicle owned by a categorically eligible assistance unit member.

2. Exempt any vehicle used for income producing purposes, i.e., taxi, fishing boat, farming, or when used for long distance travel, other than daily commuting, that is essential to the employment of an assistance unit member (or ineligible immigrant or disqualified person whose assets are being considered available to the assistance unit) - for example, the vehicle of a traveling sales person or a migrant farm worker following the work stream. When farm self-employment is terminated, the exemption may continue for one year.

3. Exempt any vehicle annually producing income consistent with its average trade-in value, even if used only on a seasonal basis.

4. Exempt any vehicle used as the assistance unit’s home.

Vehicles (Licensed), cont.

Use the “average trade-in value” given in the current Edmunds Automobile Valuation Internet site (or NADA for older vehicles) or the lower of two reasonable appraisals from knowledgeable sources and DOCUMENT the file

See 802 E. (In Wyoming jointly owned vehicles require all signatures to transfer ownership.)

5. Exempt any vehicle necessary to transport a physically disabled member (or physically disabled ineligible immigrant or physically disabled disqualified person whose assets are being considered available to the assistance unit) regardless of the purpose of the transportation (limited to one vehicle per physically disabled assistance unit member).

6. Exempt any vehicle used to transport the assistance unit’s fuel for heating or water for home use when the transported fuel or water is anticipated to be the primary source of fuel or water for the assistance unit during the certification period.

7. Exempt any licensed vehicle if the sale of the vehicle would produce an estimated return of not more than $1,500.

8. Exempt, per assistance unit, one vehicle with an average trade-in value of less than $15,000.00.

Exempt, for an eligible married couple, two vehicles with a combined average trade-in value of less than $15,000.00.

Process II - If unable to totally exempt the vehicle in Process I, apply the following:

9. Count in full toward the assistance unit’s asset level that portion of the fair market value that exceeds $4650. The equity value test cannot be applied in Process II.

* One vehicle per adult assistance unit member (or an ineligible immigrant or disqualified assistance unit member whose assets are being considered available to the assistance unit), regardless of the use of the vehicle; and

* Any other vehicle an assistance unit member under the age of 18 (or an ineligible immigrant or disqualified assistance unit member under age 18 whose assets are being considered available to the assistance unit) drives to commute to and from work, school, training or to look for work.

* If the excess value, including other countable assets, is under the assistance unit’s asset limit, continue to process the case.

* If the excess value, including other countable assets, is over the assistance unit’s asset limit, deny/close the case for excess assets.

Vehicles (Licensed) cont.

Process III:

10. For licensed vehicles that are not able to be handled under Process I and II, count the greater of the excess trade-in value or the equity value.

PO:

1. Exempt average trade-in value up to $15,000 (combined value) for two duly licensed vehicles used for transportation for an eligible married couple; or

2. Exempt average trade-in value up to $15,000 for one duly licensed vehicle used for transportation for all other assistance units.

(1. and 2. applies to the vehicle(s) with the highest average trade-in value.)

3. Use any amount over $14,999.99 toward the appropriate asset limit.

4. Use the equity value of all other licensed or unlicensed vehicles toward the appropriate asset limit.

Vehicles - Leased

Exempt during the contract or agreement period. If purchased, treat as a licensed/unlicensed vehicle, as appropriate.

FS:

Any gain or benefit received at the end of the contract/ agreement is to be treated as a one-time lump sum asset.

X
LS

Vehicles - Unlicensed

Count the equity value unless, for FS, the unlicensed vehicle is used in self-employment, does not require licensing or is owned by categorically eligible recipients.

X
UL

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NOTES:

X OT

X LS

X
OT

X
LS