Nebraska Administrative Code › Topic - HEALTH AND HUMAN SERVICES SYSTEM › Title 469 - ASSISTANCE TO THE AGED, BLIND, OR DISABLED PROGRAM › Chapter 2 - ELIGIBILITY REQUIREMENTS › Section 469-2-009 - RESOURCES

Current through June 17, 2024
The total equity value of available non-excluded resources of
				  the individual or individual and responsible relative, or individual and
				  essential person is determined and compared with the established maximum for
				  available resources which the individual may own and still be considered
				  eligible. If the total equity value of available non-excluded resources exceeds
				  the established maximum, the individual is ineligible. The assets of each
				  spouse are considered available to the other unless there is a divorce.
(A) Resource limits are:
(i) $2000 for a single individual;
				or
(ii) $3,000 for a
				couple.
009.01
COUNTED
				RESOURCES.
For a listing of counted resources, please refer to the
				Guidance Document.
009.02
VERIFICATION OF RESOURCES.
Before determining
				eligibility of an Assistance to the Aged, Blind, or Disabled or State
				Disability applicant who does not receive Supplemental Security Income, all
				individuals' resources must be verified and documented in the case record.
				Please refer to the Guidance Document for a listing of resources.
009.03
DEFINITION OF AVAILABLE
				RESOURCES.
For the determination of eligibility, available
				resources include cash or other liquid assets or any type of real or personal
				property or interest in property that the applicant or recipient owns and may
				convert into cash to be used for support and maintenance.
009.03(A)
UNAVAILABILITY OF
				RESOURCE.
Regardless of the terms of ownership, if it can be
				documented in the case record that the resource is unavailable to the
				individual, the value of that resource is not used in determining
				eligibility.
009.03(B)
EXCLUDED RESOURCES.
Disregarded income is also
				disregarded as a resource unless there is regulation stating otherwise.
				Additionally, the following resources are excluded:
(i) Real property which the individual owns
				and occupies as a home;
(ii)
				Household goods and personal effects of a moderate value used in the
				home;
(iii) Cash surrender value of
				life insurance policies with combined face values of $1,500 or less per
				individual;
(iv) A specified
				maximum in proceeds from an insurance policy irrevocably assigned for the
				purpose of burial of the applicant or recipient;
(v) Irrevocable burial trusts up to the
				specified amount per individual and the interest if irrevocable;
(vi) Burial space items or a contract for the
				purchase of burial space items owned by an applicant or recipient or designated
				family member;
(vii) Burial
				space;
(viii) Up to $1,500 set
				aside for burial arrangements;
(ix)
				One motor vehicle if it is used for employment, medical transportation, or as
				the applicant or recipient's home. If the individual has more than one motor
				vehicle, the individual may designate the vehicle to be excluded;
(x) Certain trusts, including guardianships,
				where the person in whose behalf the trust is established may be ineligible but
				this may not affect eligibility of the other person in the household unit;
(xi) Certain life estates in real
				property;
(xii) Income received
				annually, semi-annually, or quarterly which is prorated on a monthly basis and
				included in the budget, during the period of time it is being considered as
				income;
(xiii) The unspent portion
				of any Retirement, Survivors, Disability Insurance or Supplemental Security
				Income retroactive payments for six months following the month of
				receipt;
(xiv) U.S. savings bonds,
				for the initial six-month mandatory retention period;
(xv) A resource used in the recipient's trade
				or business;
(xvi) A maximum of
				$6,000 equity value of nonbusiness property, real or personal, that is used to
				produce goods or services essential to daily activities;
(xvii) The unspent portion of an Aged, Blind,
				or Disabled or State Disability Program retroactive payment for six months
				following the month of receipt;
(xviii) Victims compensation payments, such
				as payments received from a state or local government to aid victims of crime.
				These are excluded for nine months beginning with the first month after
				receipt;
(xix) Payments received
				from a state or local government to assist in relocation, excluded for nine
				months beginning with the first month after receipt;
(xx) An unavailable job-related retirement
				account that is held by the employer;
(xxi) An Individual Development Account, set
				up for postsecondary education or purchase of an individual's first
				home;
(xxii) Medicare set-aside
				accounts that may be used only for payment of medical bills of Medicare
				beneficiaries; and
(xxiii) Funds
				held in an Achieving a Better Life Experience account, also known as an ABLE
				account.
009.04
DETERMINATION OF OWNERSHIP
				OF RESOURCES.
A resource which appears on record in the name of an
				applicant or responsible relative is considered as belonging to the applicant.
009.04(A)
JOINTLY OWNED
				RESOURCES.
When an applicant has a jointly owned resource that is
				considered available, the following applies:
009.04(A)(i)
RESOURCES OWNED WITH
				OTHER RECIPIENTS.
If an applicant owns a resource with another
				individual who is on categorical assistance, the value of the resource will be
				divided by the number of owners, regardless of the terms of
				ownership.
009.05
CONSIDERATION OF RELATIVE
				RESPONSIBILITY.
When the applicant has a relative responsibility
				for an individual in another assistance unit, and the responsible relative owns
				the resource, the value must be divided by the number of units to determine the
				amount to be counted to each. An Assistance to the Aged, Blind, or Disabled or
				State Disability Program Medical Assistance or State Disability Program Medical
				Assistance couple is considered one unit.
009.06
INHERITANCE.
When an applicant receives an inheritance, verified payment of debts or
				obligations of the deceased are subtracted from the settlement.
009.07
VALUE AND
				EQUITY.
Equity is the actual value of property or the price at
				which it could be sold, less the total of encumbrances against it such as the
				mortgages, mechanic's liens, other liens and taxes, and estimated selling
				expenses.
009.07(A)
SECURED
				DEBTS.
The total value of unpaid personal taxes and other personal
				debts secured by mortgages, liens, promissory notes, and judgments, other than
				those on which the statute of limitations applies, is subtracted from the gross
				value of the encumbered property to find the equity.
009.07(B)
DETERMINATION OF
				VALUE.
The use of public tax records may be used to determine the
				sale value of a resource.
009.08
TYPES OF
				RESOURCES.
Resources can be divided into two categories: liquid
				and non-liquid.
009.08(A)
LIQUID
				RESOURCES.
Liquid resources are assets that are in cash or
				financial instruments which are convertible to cash. For a list of liquid
				resources, please refer to the Guidance Document.
009.08(A)(i)
CASH, SAVINGS,
				INVESTMENTS, MONEY DUE.
Cash on hand, cash in checking and savings
				accounts, salable stocks or bonds, certificates of deposit, promissory notes
				and other collectable unpaid notes or loans and other investments are available
				resources.
009.08(A)(i)(1)
ABLE
				ACCOUNTS.
In December 2014, the Achieving a Better Life Experience
				(ABLE) Act was signed into law authorizing individuals with disabilities to
				save more than the Social Security limit in assets
				($2,000).
009.08(A)(ii)
LAND CONTRACTS.
A land contract, or real estate
				contract of sale, is considered a resource to the seller of the property if the
				contract can be sold.
009.08(A)(iii)
FUNDS SET ASIDE
				FOR BURIAL.
A specified maximum may be disregarded if it is set
				aside for the purpose of paying burial expenses. The individual may choose to
				put the money in one of the following:
(a) A
				pre-need burial trust. If the individual has an irrevocable burial trust for
				more than the specified maximum, the excess is considered an available
				resource;
(b) A policy of burial
				insurance. If the individual has irrevocably assigned more than the specified
				maximum in burial insurance, the excess is not an available resource;
				or
(c) A maximum of $1,500
				designated for burial. These funds may be in an account or in an insurance
				policy.
009.08(A)(iii)(1)
IRREVOCABLE BURIAL TRUSTS.
If the money was put in an
				irrevocable burial trust on July 16, 1982, or later, it is not considered an
				available resource. According to Nebraska law, an individual is allowed to
				deposit funds up to the specified maximum in an irrevocable trust fund created
				for the purpose of a prearranged funeral plan.
009.08(A)(iii)(1)(a)
INTEREST ON
				BURIAL TRUSTS.
For irrevocable burial trusts contracted on
				December 31, 1986, or earlier, the individual was allowed to stipulate whether
				the interest, or dividends, accruing to the trust fund were irrevocable. If the
				interest, or dividends, are irrevocable, they are disregarded.
009.08(A)(iii)(2)
BURIAL INSURANCE.
Burial insurance is defined as
				insurance whose terms specifically require that the proceeds can be only be
				used to pay the burial expenses of the insured, or a life insurance policy that
				is irrevocably assigned for the specific purpose of burial. When the proceeds
				of a life insurance policy are irrevocably assigned for the purpose of burial,
				the cash value is not available and is disregarded as a resource.
009.08(A)(iii)(3)
MONEY
				DESIGNATED FOR BURIAL.
Up to $1,500 may be disregarded for each
				individual if it is set aside for the purpose of paying burial arrangements for
				the individual, or the individual's spouse. This exclusion is in addition to
				the burial space exclusion. This exclusion is not in addition to a burial trust
				or burial insurance that has been irrevocably assigned.
009.08(A)(iii)(4)
BURIAL
				SPACES.
The value of burial spaces held for the purpose of
				providing a place for the burial of the individual, their spouse, and members
				of the individual's immediate family are not counted as an available resource.
				The immediate family includes minor and adult children, including adopted
				children and stepchildren, brothers, sisters, parents, adoptive parents, and
				the spouses of these individuals. A burial space includes a crypt, mausoleum,
				urn, casket, marker, vault, or other repository for the remains of a deceased
				person. This exemption also applies to markers, vaults, and the charges for
				opening and closing the grave, but does not include services or burial fees.
				These items are exempt only if they are actually purchased. If the recipient
				has a life insurance policy for the purchase of burial items, the cash value is
				included in the specified maximum if the policy is irrevocably
				assigned.
009.08(A)(iii)(5)
BURIAL SPACE ITEMS HELD IN A CONTRACT.
Burial space
				items may be disregarded when they are held for an individual by way of a
				contract. To meet the requirement that the item is actually purchased, the
				contract must state that the individual has purchased a particular item for a
				specified price. Revocability is not an issue for burial space contracts as
				long as the agreement itself represents the individual's ownership.
009.08(A)(iv)
LIFE
				INSURANCE TERMS.
Definitions regarding life insurance that may be
				used in determining eligibility are:
(a) Cash
				surrender value is the amount the insurer will pay, usually to the owner, upon
				cancellation of the policy before death of the insured or before maturity of
				the policy.
(b) Face value is the
				basic death benefit of the policy exclusive of dividend additions or additional
				amounts payable because of accidental death or under other special provisions.
				In determining the face value of a policy, the original face value of the
				policy is used.
(c) Insured refers
				to the person whose life is insured.
(d) Insurer refers to the company that
				insures others.
(e) Owner refers to
				the person who has the right to change the policy.
009.08(A)(iv)(1)
CASH SURRENDER
				VALUE.
Using the following criteria, the cash surrender value of
				life insurance owned by the recipient is considered a resource. If the combined
				original face value of all the life insurance policies owned by the recipient
				exceeds $1,500, the cash surrender value of all the policies is considered a
				countable resource. Each person in the unit is allowed the $1,500 exemption for
				the face value of their life insurance.
009.08(A)(iv)(2)
ADJUSTMENT.
The recipient can usually adjust a large
				insurance policy to a smaller amount providing limited protection and allowing
				the individual to benefit from accumulated savings.
009.08(A)(iv)(3)
INTEREST AND
				DIVIDENDS.
Interest and dividends actually paid to the recipient
				from all life insurance policies are treated as income unless the total is less
				than $10 per individual.
009.08(A)(v)
TRUST, GUARDIANSHIP,
				CONSERVATORSHIP, AND ANNUITY FUNDS.
When a guardianship,
				conservatorship, annuity, or trust has been established on behalf of an
				individual and the individual who has applied has resources exceeding the total
				resource limit for an Aged, Blind, or Disabled Program grant program or State
				Disability Program grant or medical program, the trust, guardianship,
				conservatorship, or annuity will be verified if it is available to the
				applicant.
009.08(A)(v)(1)
DEFINITIONS.
For the purposes of these regulations,
				the following definitions apply.
(a)
ANNUITY.
A right to receive periodic payments, either
				for life or a term of years.
(b)
BENEFICIARY.
Any individual, or individuals,
				designated in the trust to receive any disbursal from the corpus of the trust,
				or from income generated by the trust, which benefits the party receiving it. A
				payment from a trust may include actual cash, as well as non-cash or property
				disbursements, such as the right to use and occupy real property.
(c)
GRANTOR.
Any
				individual who creates a trust. It includes the following:
(i) The recipient;
(ii) The recipient's spouse;
(iii) A person, including a court or
				administrative body, with legal authority to act in place of, or on behalf of,
				the individual or the individual's spouse or guardian or conservator;
				or
(iv) A person, including a court
				or administrative body, acting at the direction or upon the request of the
				recipient or the recipient's spouse.
(d)
IRREVOCABLE
				TRUST.
A trust which cannot, in any way, be revoked by the
				grantor.
(e)
POOLED
				TRUST.
A trust containing the assets of a disabled individual that
				is established and managed by a nonprofit association in a separate account
				solely for the benefit of a disabled individual.
(f)
REVOCABLE TRUST.
A trust which can be revoked by the grantor. A trust which provides that the
				trust can only be modified or terminated by a court is considered to be a
				revocable trust, since the grantor, or representative can petition the court to
				terminate the trust. A trust called irrevocable, but which will terminate if
				some action is taken by the grantor, is a revocable trust for purposes of these
				regulations.
(g)
SPECIAL NEEDS TRUST.
A trust containing the assets of an
				individual age 64, or younger, who is disabled and that is established for the
				sole benefit of that individual by a parent, grandparent, legal guardian, or a
				court.
(h)
TESTAMENTARY
				TRUST.
A trust established through a will.
(i)
TRUST.
For
				purposes of these regulations, a trust is any arrangement in which an
				individual, known as the grantor, transfers property to another person, known
				as the trustee, with the intention that it be held, managed, or administered by
				the trustee for the benefit of the grantor or certain designated beneficiaries.
				The trust must be valid under state law and manifested by a valid trust
				instrument of agreement. A trustee holds a fiduciary responsibility to manage
				the trust's corpus and income for the benefit of the beneficiaries.
009.08(A)(v)(2)
TESTAMENTARY TRUSTS.
Testamentary trusts may be
				excluded as resources, depending on the availability of the funds to the
				individual or their spouse as specified in the terms of the trust.
009.08(A)(v)(3)
ANNUITIES.
009.08(A)(v)(3)(a).
PURCHASED OR
				ANNUITIZED BEFORE FEBRUARY 8, 2006.
Where the individual cannot
				assign or change the ownership or payee, the annuity is unavailable. A
				determination must then be made if a deprivation has occurred. If the expected
				return on the annuity is commensurate with the life expectancy of the
				individual, the annuity can be deemed actuarially sound and no deprivation has
				occurred.
009.08(A)(v)(3)(b).
ANNUITY TRANSACTION ON OR AFTER FEBRUARY 8, 2006.
Revocable and assignable annuities are a countable resource. A saleable annuity
				which has not been sold is a countable resource for the amount annuitized, less
				the payment amount already received. A saleable annuity which has been sold for
				a value consistent with the secondary market is a countable resource in the
				amount of the proceeds. If a saleable annuity is sold for less than a value
				consistent with the secondary market, it will be valued at the current
				secondary market amount.
009.08(A)(v)(3)(b)(i)
ANNUITIES
				EXCLUDED FROM RESOURCES.
An annuity which has been annuitized will
				be excluded from countable resources if it meets the following conditions:
(1) The annuity is considered either an
				individual retirement annuity according to Internal Revenue Code, or a deemed
				Individual Retirement Account under a qualified employer plan by Internal
				Revenue Code;
(2) The annuity is
				purchased with the proceeds from a simplified employee pension; and
(3) The annuity is irrevocable and
				non-assignable, the individual who owned the retirement account or plan is
				receiving equal monthly payments with no deferral or balloon payments, and the
				scheduled payout period is actuarially sound based on the individual's life
				expectancy. The applicant or recipient must verify that the annuity meets these
				requirements.
009.08(A)(v)(4)
REVOCABLE
				TRUSTS.
In the case of a revocable trust:
(a) The entire corpus of the trust is counted
				as an available resource to the applicant or recipient;
(b) Any payments from the trust made to or
				for the benefit of the applicant or recipient are counted as income;
(c) Any payments from the trust which are not
				made to, or on behalf of, the applicant or recipient are considered assets
				disposed of for less than fair market value; and
(d) If the applicant or recipient must go to
				court to access the funds, the individual or guardian or conservator of the
				individual is allowed 60 days to initiate court action. For the applicant, 60
				days from the approval date is allowed; for the recipient, 60 days from the
				notification of the requirement to file for access is allowed.
009.08(A)(v)(5)
GUARDIANSHIPS OR CONSERVATORSHIPS.
When a fund is
				established in the process of the appointment of a guardianship or
				conservatorship, determine if the funds are available without court approval.
(a) The individual is ineligible for
				categorical assistance until the guardian gives the Department written notice
				of refusal to spend guardianship or conservatorship monies for the care and
				maintenance of the individual. In order to be considered current notice, it
				must be given within one year of its use in determining eligibility for
				categorical assistance.
(b) After
				current notice has been given, the individual, if otherwise eligible, may
				receive benefits if all judicial remedies are pursued to determine the
				availability of the funds. This may include an appeal to the proper district
				court and, if necessary, to the Court of Appeals and the Nebraska Supreme
				Court.
(c) Certain guardianships
				and conservatorships are not reasonably available and judicial review may be
				waived; these include some guardianships or conservatorships where the guardian
				or conservator's discretion is limited and certain guardianships or
				conservatorships established from the proceeds of a personal injury case on
				behalf of a child.
(d) The child,
				guardian, or conservator must file a request for access to the funds in a court
				of competent jurisdiction within, for the applicant, 60 days from the approval
				date; for the recipient, 60 days from the notification of the requirement to
				file for access.
(e) If the
				petition or application has not been filed after 60 days, the individual is no
				longer eligible for Aged, Blind, or Disabled payment or State Disability
				Program.
009.08(A)(v)(6)
IRREVOCABLE TRUSTS.
009.08(A)(v)(6)(a)
TRUSTS
				ESTABLISHED BEFORE AUGUST 11, 1993.
For a qualifying trust
				established before August 11, 1993, the maximum amount that could have been
				distributed from either the income or principal is considered an available
				resource. A qualifying trust is a trust, or similar legal device, that was
				established by an applicant or recipient, or their spouse, under which:
(1) The individual is the beneficiary of all
				or part of the payments from the trust; and
(2) The amount of the distribution is
				determined by one or more trustees who are permitted to exercise any discretion
				with respect to the amount to be distributed to the individual and the
				distributable amount from a qualifying trust has no use limitation.
009.08(A)(v)(6)(a)(i) A trust that was
				established by an individual's guardian or legal representative, acting on the
				individual's behalf, falls under the definition of a qualifying trust. If an
				individual is not legally competent, for example, a trust established by a
				legal guardian, including a parent, using the individual's assets, can be
				treated as having been established by the individual, since that individual
				could not establish the trust for himself or herself.
009.08(A)(v)(6)(b)
TRUSTS
				ESTABLISHED ON OR AFTER AUGUST 11, 1993.
In accordance with
				Sections 1917 (c) and (d) of the Social Security Act, the following regulations
				apply to all trusts created on or after August 11, 1993:
(i) These regulations apply to any recipient
				who establishes a trust, who is a beneficiary of a trust, and who is an
				applicant or recipient of the Aged, Blind, or Disabled, or State Disability
				Program. An individual is considered to have established a trust if their
				assets or assets of a spouse were used to form a part or the entire corpus of
				the trust other than by will. These include trusts established by:
(1) The individual;
(2) The individual's spouse;
(3) A person, including a court or
				administrative body, with legal authority to act in place of or on behalf of
				the individual or the individual's spouse; or
(4) A person, including any court or
				administrative body, acting at the direction or upon the request of the
				individual or the individual's spouse.
(ii) Where a trust includes the assets of
				another person, as well as the assets of the applicant or recipient, or this
				individual's spouse, the rules in this section apply only to the portion of the
				trust attributable to the assets of the applicant or recipient and this
				individual's spouse.
009.08(A)(v)(6)(c)
PAYMENT CAN BE
				MADE FROM TRUST.
The following applies when payment may be made to
				the individual or the individual's spouse under the terms of the trust:
(1) Payments from income, or from the corpus,
				made to or for the benefit of the applicant or recipient or this individual's
				spouse are treated as income to the individual.
(2) If there are any circumstances under
				which payment from the trust corpus could be made to or for the benefit of the
				applicant or recipient, or this individual's spouse, the portion of the corpus
				from which payment to or for the benefit of the applicant or recipient, or this
				individual's spouse could be made must be considered a resource that is
				available to the individual.
(3)
				Any portion of the corpus that could be paid to or for the benefit of the
				applicant or recipient, or this individual's spouse is treated as an available
				resource.
(4) Payments from income
				or from the corpus that are not made to or for the benefit of the applicant or
				recipient, or this individual's spouse, are treated as transfers of assets for
				less than fair market value.
009.08(A)(v)(6)(c)(i)
EXCEPTIONS.
A trust is not considered available if it
				is established for a disabled recipient age 64 or younger, receiving or
				eligible to receive State Supplemental Income; Retirement, Survivors,
				Disability Insurance; or Aid to the Aged, Blind, or Disabled and is:
(1) A Special Needs Trust containing the
				assets of the applicant or recipient and established solely for the benefit of
				this individual by the individual's parent, grandparent, legal guardian, or a
				court if the State will receive all amounts remaining in the trust upon the
				death of the individual or upon termination of the trust up to the amount of
				total medical assistance paid on behalf of the individual; or
(2) A Pooled trust containing the assets of
				the applicant or recipient and is:
(a)
				Established and managed by a non-profit association; or
(b) A separate account maintained for each
				beneficiary of the trust, but, for purposes of investment and management of
				assets, the trust pools these accounts;
(c) Accounts in the trust that are
				established solely for the benefit of individuals who are blind or disabled
				receiving, or eligible to receive, Supplemental Security Income, Retirement,
				Survivors, Disability Insurance, or Aged, Blind, or Disabled; and
(d) A trust containing the provision that the
				State of Nebraska will receive all amounts remaining in the trust for the
				beneficiary upon the death of the applicant or recipient up to the amount of
				total medical assistance paid on behalf of the individual.
009.08(A)(v)(6)(d)
PAYMENT CANNOT BE MADE FROM TRUST.
When payments from
				some portion or all of the trust cannot under any circumstances be made to or
				for the benefit of the individual, or where there is some portion of the trust
				from which no payments can be made to or for the benefit of the individual, all
				of the corpus, or income on the corpus, which cannot be paid to the individual
				is considered a transfer of assets for less than fair market value.
009.08(A)(v)(6)(e)
HARDSHIP
				PROCEDURES.
A trust will not be considered available if denial of
				assistance would cause undue hardship.
009.08(B)
NON-LIQUID
				RESOURCES.
Non-liquid resources are tangible properties which need
				to be sold if they are to be used for the maintenance of the recipient. They
				include all properties not classified as liquid resources. For a listing of the
				non-liquid resource refer to the Guidance Document.
009.08(B)(i)
EXEMPTION OF
				HOME.
The Aged, Blind, or Disabled Payment or State Disability
				Program applicant or recipient's home is exempt from consideration as an
				available resource, with the following limitations.
009.08(B)(i)(1)
DEFINITION OF
				HOME.
A home is defined as any shelter which the individual owns
				and uses as the principal place of residence. The home includes any land on
				which the house is located and any related outbuildings necessary to the
				operation of the home.
009.08(B)(i)(2)
ADJACENT
				LOTS.
Lots adjacent to the home are considered available if they
				can be sold separately from the home. If it is determined and documented in the
				case record that the lots adjacent to the home cannot be sold or are not
				saleable due to the location or condition of the property, the adjacent lots
				are also exempt.
009.08(B)(i)(3)
HOME EQUITY VALUE.
For applications on January 1,
				2006, or later, the individual is not eligible for any long-term care services
				if the equity value interest in the home exceeds the specified amount.
009.08(B)(ii)
REMOVAL FROM HOME.
If the individual moves away from
				the home and does not plan, or is unable, to return to it, the Department
				determines when the home becomes an available resource in accordance with the
				following provisions:
(a) The home continues
				to be exempt as a resource while it is actually occupied by the individual's
				spouse or dependent relative. A dependent relative includes the individual's:
(i) Child, stepchild, or grandchild age 17 or
				younger;
(ii) Child, stepchild, or
				grandchild age 18 or older if aged, blind, or disabled and receiving, or
				eligible to receive, Supplemental Security Income; Aged, Blind, or Disabled
				payment; State Disability Program; and, other categorical assistance;
				or
(iii) Brother, sister,
				stepbrother, stepsister, half-brother, half-sister, parent, stepparent,
				grandparent, aunt, uncle, niece, nephew, or the spouse of any persons
				previously named, even after the marriage has been terminated by death or
				divorce who is receiving, or who would be eligible for, categorical assistance
				except for income and resources, and who lived in the home at any time one year
				before the recipient moved away from the home.
(b) When the individual moves to a nursing
				home, or to an assisted living facility, and is receiving Aged or Disabled
				waiver services, and it is not possible to determine immediately if the
				individual will be able to return home, a maximum of six months may be allowed
				to make that determination. Unless the individual or the individual's
				representative signs a statement that the individual will not return to the
				home, or the home is already listed for sale, it is not possible to determine
				immediately if the individual will return home.
(c) After a maximum of six months, the home
				may no longer be considered the individual's principal place of residence and
				must be considered an available resource. However, the individual is allowed
				time to liquidate the property before it affects eligibility. The six months
				begin with the first full month following the month of admission.
(d) After the individual is admitted, if the
				home is exempt because it is occupied by one or more of the relatives
				identified previously, the six months begin with the first full month following
				the month that the home is no longer allowed the exemption for
				occupation.
009.08(B)(ii)(1)
LIQUIDATION OF HOME.
As soon as the determination is
				made that the recipient will not be able to return home, time must be allowed
				for the individual to liquidate the property. The recipient is also allowed
				time for liquidation if the home if left for a reason other than entering a
				medical institution.
009.08(B)(iii)
SALE OF
				HOME.
If the Aged, Blind, or Disabled payment or State Disability
				Program individual sells his or her home, the net proceeds become an available
				resource unless reinvested immediately in another home. In order to be allowed
				time to reinvest the proceeds, the individual must be residing in the home at
				the time of the sale and move directly to the new home. Net proceeds are the
				remainder after payment of the mortgage, realtor's fees, legal fees, and any
				other sales-related costs. Any deductions must be verified.
009.08(B)(iv)
LIQUIDATION OF REAL
				PROPERTY.
When an individual has excess resources because of real
				property, the individual may be eligible to receive an Aged, Blind, or Disabled
				grant or the State Disability Program pending liquidation of the resource in
				some instances. Eligibility does not apply when the excess resources are
				because of real property other than the home, until the month the Agreement to
				Sell Real Property and Repay Assistance has been signed. This instances that
				allow eligibility during the liquidation period are according to the following
				regulations:
009.08(B)(iv)(1)
DEFINITION OF REAL PROPERTY.
Real property is defined
				as land, houses, or buildings.
009.08(B)(iv)(2)
TIME LIMITS FOR
				LIQUIDATION.
Exclude real property which the recipient is making a
				good faith effort to sell.
009.08(B)(iv)(3)
EXTENSION OF
				TIME LIMIT.
If the individual is unable to liquidate the property
				in six calendar months, the Department may authorize an additional three
				calendar months. In determining whether to allow a three-calendar-month
				extension, the Department considers:
(a) If
				the property has been placed on the market with a real estate licensee
				or;
(b) If the individual is asking
				a fair price for the property;
(c)
				If the asking price has been reduced;
(d) If the individual understands the
				requirement for liquidation of the property;
(e) If the recipient has not refused a
				reasonable offer to purchase, which if there is not a better offer, a
				reasonable offer is defined as at least two-thirds of either the estimated
				current market value or the proven actual value;
(f) The economic conditions in the area and
				if real estate is selling; and,
(g)
				The three calendar months are counted whether or not the individual is
				receiving assistance. If the individual moves back to the home during the
				three-month period and subsequently moves out again, only the months remaining
				in the three months are allowed.
009.08(B)(iv)(4)
JOINT
				OWNERSHIP.
Real property that is jointly owned is excluded if sale
				of the property would cause the other owner, whether the other owner receives
				assistance or not, undue hardship. However, if undue hardship ceases to exist,
				the property is included in countable resources and handled according to the
				following regulations:
(a) If the individual
				owns the property with other persons who are not receiving assistance, and the
				real property is not the principal place of residence of the other owner, the
				other owner shall be contacted to determine if they are willing to liquidate
				their interest in the property. If all parties are willing to liquidate,
				proceed with the liquidation process.
(b) If one or more of the parties do not wish
				to liquidate, the individual must take legal action to force a sale of the
				property.
009.08(B)(iv)(5)
ADDITIONAL
				PIECES OF REAL PROPERTY.
In computing the amount of the unit's
				total available resources, the potential sales value of all real property,
				other than the allowed exemption for the home, is determined and
				used.
009.08(B)(iv)(6)
MOTOR VEHICLES.
One Motor vehicle is disregarded
				regardless of its value as long as it is necessary for the recipient or a
				member of their household for employment, medical treatment, or is used as the
				home. If the individual has more than one motor vehicle, the vehicle with the
				greatest equity is excluded.
(a) Any other
				motor vehicles are treated as non-liquid resources and the equity is counted in
				the resource limit. The individual's verbal statement that the motor vehicle is
				used for employment or medical treatment is sufficient.
(b) A recipient in a nursing home or
				receiving services through an Assisted Living Waiver is not allowed the
				disregard of any motor vehicles because medical transportation is included in
				the payment to the facility.
009.08(B)(iv)(7)
DETERMINATION OF
				FAIR MARKET VALUE.
For motor vehicles that are counted in the
				resource total, the Department uses the fair market value. Cars, trucks, SUVs,
				vans, motorcycles, recreational vehicles, motorboats and watercraft, and planes
				are included in the category of motor vehicles.
009.08(B)(iv)(8)
LIFE
				ESTATES.
The owner of a life estate in real property is generally
				unable to sell the property. The Department, includes the net income from the
				life estate in the budget rather than considering the life estate as an
				available resource. If the owner of a life estate transfers it to another
				individual, it must be determined if it is deprivation of a resource. If the
				life estate is sold, the proceeds are counted as a resource. It is a disposal
				of assets to purchase a life estate interest in another individual's home
				unless the purchaser resides in the home for at least 12 months after the date
				of purchase.
009.08(B)(iv)(9)
HOUSEHOLD GOODS AND PERSONAL EFFECTS.
Household goods
				and personal effects of moderate value used in the home are exempt. Household
				goods are defined as including household furniture, furnishings and equipment
				used in the operation, maintenance, and occupancy of the home or in the
				functions and activities of the home and family life, as well as those items
				which are for comfort and accommodation. Personal effects include clothing,
				jewelry, items of personal care, and other similar items.
009.08(B)(iv)(10)
LOANS.
A bona fide loan to a recipient or financially
				responsible relative is disregarded as a resource. A bona fide loan is defined
				as one that must be repaid. The agreement for repayment may be verbal or
				written and the loan may be owed to an individual or to an organization or
				agency. Using prudent person principle, the individual's statement is adequate
				verification that the loan must be repaid.
009.08(B)(iv)(11)
ESSENTIAL
				PROPERTY.
If the individual owns a resource that is used in a
				trade or business, the resource is disregarded, regardless of the value. This
				includes real property such as land, houses, or buildings as well as personal
				property such as farm machinery, business equipment, livestock, poultry, crops,
				tools, safety equipment, or business bank accounts as long as the funds are
				separated from other liquid resources. The individual or a responsible
				relative, such as a spouse or parent, must be actively involved in the
				day-to-day operation of the trade or business as a primary means of earning a
				livelihood. If the individual or responsible relative is not actively involved
				in the trade or business, it must be due to circumstances that are beyond the
				individual's control, such as illness, and there must be a reasonable
				expectation that the use will resume.
009.08(B)(iv)(11)(a)
NONBUSINESS
				PROPERTY.
A maximum of $6,000 equity value of nonbusiness
				property, real or personal, that is used to produce goods or services essential
				to daily activities is excluded from resources. For instance, an individual may
				maintain livestock for consumption in his or her own household.
(i) The property must be in current use or
				there is the reasonable expectation that use will resume.
(ii) A vehicle such as a garden tractor may
				qualify for this exemption; an automobile does not qualify.
(iii) Any equity in excess of $6,000 is
				counted as a resource. If the excess resource is real property, see the
				regulations on liquidating real property.
009.08(B)(iv)(12)
TRAILER HOUSES
				AND OTHER PORTABLE HOUSING UNITS.
If an individual occupies a
				trailer house, or other portable housing unit as his or her home, the property
				is allowed the resource exemption for a home. If the recipient enters a nursing
				home, the allowed the exemption of a home for up to six months applies.
(a) If the trailer house, or other portable
				housing unit, is used for the recipient's trade or business, it may qualify as
				essential property regarding an exemption.
(b) If it is used to produce goods for the
				individual's own consumption or use, it may qualify as nonbusiness property
				regarding an exemption.
009.08(B)(iv)(13)
FARM
				EQUIPMENT.
If the farm equipment is used for the individual's
				trade or business, see Essential Property in this section. If it is used to
				produce goods for the individual's own consumption or use, see nonbusiness
				property in this section.
009.08(B)(iv)(14)
BUSINESS
				EQUIPMENT, FIXTURES, AND MACHINERY.
If business equipment is used
				for the individual's trade or business, see essential property in this section.
				If it is used to produce goods for the individual's own consumption or use, see
				nonbusiness property in this section.
009.08(B)(iv)(15)
LIVESTOCK,
				POULTRY, CROPS THAT ARE GROWING AND ON HAND.
If the livestock,
				poultry, and crops are grown for the individual's trade or business, see
				essential property in this section. If they are grown for the individual's own
				consumption or use, see nonbusiness property in this section.
009.09(C)
MAXIMUM AVAILABLE RESOURCE LEVELS FOR GRANT
				ELIGIBILITY.
The established maximum for available resources which
				an individual, or an individual and responsible relative or essential person
				may own and still be considered eligible for a grant, according to unit size,
				are as follows:
(i) One member unit -
				applicant or recipient only: $2000
(1) If
				there is an eligible spouse and an ineligible spouse, the resource level for
				the eligible spouse is $2,000; or
(2) If the ineligible spouse later becomes
				eligible, each spouse is allowed $2,000.
(ii) Two member unit: $3000
(1) Individual and eligible spouse;
(2) Individual and ineligible
				spouse;
(3) Individual and
				ineligible spouse who have designated resources but the individual returns home
				or no longer is eligible for waiver services; or
(4) Recipient and other essential person.
				This may be a disabled minor child and one parent if that parent is considered
				an essential person; and
(iii) Three or more member unit: $3000 plus
				$25 for each additional essential person
(1)
				Recipient and spouse; or
(2)
				Recipient and other essential person; and
(3) Additional essential persons.
009.09(D)
RESOURCES OF A SPOUSE, PARENT, OR OTHER ESSENTIAL
				PERSON.
All resources of an individual and spouse or other
				essential person who is included in the budget and who share the same home are
				considered available for the support of both unless one spouse is eligible for
				or receiving waiver services. Relative responsibility includes eligible spouse
				for spouse, whether the spouse is eligible or ineligible, and parents for
				children who are age 17, or younger, and still considered part of their
				household.
009.09(E)
DEEMING OF RESOURCES OF A PARENT.
In considering the
				resources of a parent who is not considered an Essential Person towards an
				eligible child age 17, or younger, and living in the parent's household, the
				following resources are considered to the child whether or not they are
				actually made available:
(i) All resources
				exceeding $2,000 in the case of one parent; or
(ii) All resources exceeding $3,000 in the
				case of:
(1) Two parents;
(2) One parent and spouse of the parent;
				or
(3) One parent and one minor
				sibling; and
(iii) $25
				for each additional minor sibling in the parents' household.
009.09(F)
DEPRIVATION
				OF RESOURCES.
Any action taken by the individual, or any other
				person or entity, that reduces or eliminates the individual's, or spouse's,
				recorded ownership or control of the asset for less than fair market value is a
				deprivation of resources. This includes:
(1)
				Recorded transfer of ownership of real property;
(2) Not receiving the spousal share of an
				augmented estate;
(3) Purchase of a
				life estate in another individual's home without meeting the 12-month
				requirement to reside there;
(4)
				Promissory notes, loans, mortgages, and contract sales for less than fair
				market value and not enforced;
(5)
				Purchase of an irrevocable, non-assignable annuity if State Disability Program
				is not the preferred beneficiary and the annuity is issued on February 8, 2006,
				or later;
(6) Any transfer above
				the protected spousal reserved amount to a community spouse; and
(7) Purchase of any contract or financial
				instrument, including an endowment or insurance, where the criteria for fair
				market value are not met.
009.09(F)(i) The criteria for fair market
				value are not met when:
(1) The term of the
				instrument exceeds the life expectancy of the applicable individual;
(2) The instrument does not provide for equal
				monthly or annual payments commencing immediately during the term of the
				contract;
(3) The instrument does
				not provide for the recovery of assets in the event of default; or
(4) The instrument contains exculpatory or
				cancellation terms of balance due.
009.09(F)(ii) A service given for free at the
				time cannot later be claimed as an amount owed.
009.09(F)(iii) When an asset is placed in an
				annuity on February 8, 2006 or later, the annuity regulations apply.
009.09(F)(iv) Trust regulations may take
				precedence over deprivation when an asset is placed in a trust.
009.09(F)(v) When real property in which the
				individual has a life estate is sold, the individual or spouse must receive, as
				a lump sum, their life estate interest from the net proceeds, or the entire net
				proceeds invested and the individual who has the life estate receives all the
				income.
009.09(F)(vi)
DEPRIVATION OF RESOURCES FOR A GRANT.
The Department
				investigates for deprivation of a resource if an individual, or an individual's
				spouse, applies for, or becomes eligible for, a grant.
009.09(F)(vi)(1)
LOOK-BACK
				PERIOD.
If it is determined that an individual disposed of a
				resource in order to qualify for an Aged, Blind, or Disabled payment, look back
				36 months from when the individual applies for Aged, Blind, or Disabled grant
				assistance or, if later, the date on which the individual or spouse disposes of
				resources for less than fair market value. The look-back period for grant is
				always 36 months.
009.09(F)(vi)(2)
PERIOD OF INELIGIBILITY FOR A GRANT.
If it is
				determined that an individual disposed of a resource, the applicant or
				recipient is ineligible for a grant for the number of months calculated by
				dividing the uncompensated value of the resources disposed of, by the maximum
				Aged, Blind, or Disabled payment to the individual. The number of months the
				individual is ineligible for a grant must not exceed 36. If the applicant or
				recipient is eligible for Supplemental Security Income but for a period of
				ineligibility due to a disposal, the Aged, Blind, or Disabled grant period of
				ineligibility is the same as the Supplemental Security Income period of
				ineligibility. Ineligibility for a grant begins with the month of transfer.
				Receipt of any grant during the period of ineligibility results in an
				overpayment and recoupment procedures apply.
009.09(F)(vii)
DEPRIVATION OF
				RESOURCES FOR STATE DISABILITY PROGRAM MEDICAL ASSISTANCE.
Investigate for deprivation of a resource only if an individual, or an
				individual's spouse, resides in a specified living arrangement which is defined
				as:
(a) Residing in a nursing home;
(b) Receiving the skilled level of care in a
				hospital, such as swing bed services;
(c) Requesting or Receiving Home and
				Community Based Services including an Assisted Living waiver, home health care,
				or personal care services; or
(d)
				Residing in an Intermediate Care Facility for Persons with Developmental
				Disabilities.
009.09(F)(vii)(1)
EXCEPTIONS TO DEPRIVATION RULE.
An exception may be
				made when a transfer was made for less than fair market value, but the
				individual can verify that the intent was to dispose of the resource for fair
				market value, or for other valuable consideration, that the transfer was not
				made to qualify for assistance, or that denial of assistance would cause undue
				hardship. For all disposals of assets, regardless of date, an exception may be
				made if:
(a) A satisfactory showing is made
				to the State that the individual intended to dispose of the assets either at
				fair market value or for other valuable consideration;
(b) The assets were transferred exclusively
				for a purpose other than to qualify for State Disability Program medical
				assistance; or
(c) All assets
				transferred for less than fair market value have been returned to the
				individual.
009.09(F)(vii)(2) Disposal or Transfer of
				Resources:
009.09(F)(vii)(2)(a)
LOOK-BACK PERIOD.
If it is determined that an
				individual disposed of a resource to qualify for medical assistance, look back
				60 months before the month of application.
(i)
				For State Disability Program Medical, the look-back is triggered when the
				individual first applies for Medicaid and is in a specified living arrangement,
				or is on State Disability Program Medical and enters a specified living
				arrangement. When an individual applies for State Disability Program Medical
				more than once, the look back period is based on the first date the individual
				meets both requirements.
(ii) To
				determine the countable value disposed of:
(1)
				Take the equity in the resource, which is the fair market value minus
				encumbrances;
(2) Subtract any
				compensation received by the individual; and
(3) Subtract the allowable resource level
				from the result of step 2 if this is the first disposal.
009.09(F)(vii)(3)
PERIOD OF INELIGIBILITY FOR STATE DISABILITY PROGRAM
				MEDICAL.
If it is determined that an individual disposed of a
				resource, the applicant or recipient is ineligible for State Disability Program
				Medical for the number of months determined by dividing the countable value of
				the resource, by the actual monthly cost of care in the specified living
				arrangement at the current private pay rate. If the period of ineligibility is
				longer than 12 months, the State Disability Program case is closed or denied
				and the recipient will need to apply for Medicaid. If the period of
				ineligibility is less than 12 months, the period of ineligibility begins:
(a) If the individual is on State Disability
				Program Medical, with the month of entry into a specified living arrangement;
				or
(b) If the individual is not on
				State Disability Program Medical, the month of application if in a specified
				living arrangement.
(c) If the
				individual is eligible for State Disability Program Medical, except for the
				deprivation of resources, in the month of application. It does not apply to an
				application month in which the individual is ineligible because of excess
				resources or other eligibility criteria.
(d) If the division results in a fraction,
				the fraction is converted to a dollar amount and includes that amount as
				unearned income for the applicable month.
009.09(F)(vii)(4)
AVAILABILITY OF
				HARDSHIP WAIVER PROCESS.
The individual may request in writing, to
				the Department, a hardship waiver exception when an imposed period of
				ineligibility for a transfer of assets would deprive the individual of medical
				care so that their health or life would be endangered. A notice of discharge
				from the facility is not necessary to demonstrate that health or life would be
				endangered. Undue hardship also exists when the imposed period of ineligibility
				for a transfer of assets would deprive the individual of food, clothing,
				shelter, or other necessities of life.
009.09(F)(vii)(5)
TRANSFERS NOT
				CONSIDERED DEPRIVATION FOR GRANT.
It is not considered a
				deprivation if:
(a) An applicant or recipient
				transferred a resource to his or her spouse or to an individual with power of
				attorney or a guardian or conservator for the sole benefit of the applicant or
				recipient's spouse;
(b) An
				applicant or a recipient's spouse transferred a resource to an individual with
				power of attorney or a guardian or conservator for the sole benefit of the
				applicant or recipient's spouse;
(c) A resource was transferred to a trust
				established solely for the benefit of the individual's son or daughter who is
				blind or disabled and who is receiving, or eligible to receive, Supplemental
				Security Income; Retirement, Survivors, Disability Insurance; Aged, Blind, or
				Disabled payment, or Medicaid;
(d)
				A resource was transferred to the individual's son or daughter who is blind or
				disabled, who is receiving, or eligible to receive, Supplemental Security
				Income; Retirement, Survivors, Disability Insurance; Aged, Blind, or Disabled;
				or, Medicaid;
(e) A resource was
				transferred to a trust established solely for the benefit of an individual age
				64 or younger who is disabled, receiving or eligible to receive Supplemental
				Security Income; Retirement, Survivors, Disability Insurance; Aged, Blind, or
				Disabled payment, or Medicaid.
009.09(F)(vii)(6)
TRANSFER OF A
				HOME.
It is not considered a deprivation of a resource if a home
				is transferred by an applicant or recipient to:
(a) Spouse;
(b) Son or daughter who:
(i) Is age 20 or younger;
(ii) Is blind or disabled receiving, or
				eligible to receive, Supplemental Security Income; Retirement, Survivors,
				Disability Insurance, Aged, Blind, or Disabled payment or Medicaid based on
				blindness or disability; or,
(iii)
				Was residing in the home for at least two years before assistance was requested
				for the parent, or entered an alternate living arrangement and that individual
				provided care, which permitted the parent to reside at home rather than be
				institutionalized or receive Home and Community-Based Waiver Services;
				or
(c) Sibling who has
				an equity interest in the home, and who was residing in the home for at least
				one year immediately before assistance was requested for a sibling or an
				alternate living arrangement was needed.
009.09(G)
REDUCTION OF RESOURCES.
The applicant or recipient may
				reduce available resources to the allowable limit if the case record contains
				documentation that the resources have been reduced and the unit is within the
				allowable resource limits.