Oklahoma Administrative Code › Title 340 - Department of Human Services › Chapter 10 - Temporary Assistance for Needy Families (TANF) › Subchapter 3 - Conditions of Eligibility - Need › Part 1 - RESOURCES › Section 340:10-3-5 - Personal property

Current through Vol. 41, No. 20, July 1, 2024
(a) This subsection
				  describes personal property and how it is considered in determining eligibility
				  for Temporary Assistance for Needy Families (TANF).
(1)
Household goods and
				  equipment.
Items essential to day-to-day living, such as clothing,
				  furniture, and other similarly essential items of limited value, are excluded
				  as resources.
(2)
Livestock
				  and equipment used in a business enterprise.
A person's equity in
				  livestock, equipment, or merchandise in a business enterprise is considered as
				  a resource only when the person is not actively engaged in the business
				  enterprise. Equity is not counted when the person actively participates in the
				  business or is only temporarily inactive, such as when the person becomes
				  incapacitated and reasonably expects and plans to resume the business
				  enterprise upon recovery. Equity is established based on verbal or written
				  information that the person has or by obtaining information from persons with
				  specialized knowledge about the particular resources.
(3)
Livestock and home produce used for
				  home consumption.
Any livestock or produce grown and used by the
				  assistance unit for home consumption is excluded.
(4)
Cash savings and bank
				  accounts.
Available cash and money in a financial institution is
				  considered as a resource. The person's statement that he or she does not have
				  cash on hand or in a financial institution is sufficient unless there are
				  indications to the contrary. When there is information to the contrary or when
				  the person does not have records to verify the amount on deposit, verification
				  is obtained from bank records. Section
				  167.1
				  of Title 56 of the Oklahoma Statutes (O.S. 56 § 167.1) provides that
				  financial records obtained for the purpose of establishing eligibility for
				  assistance or services must be furnished without cost to the person or Oklahoma
				  Human Services OKDHS.
(A) Checking accounts
				  may or may not represent savings. Current bank statements are evaluated with
				  the person to establish what, if any, portion of the account represents
				  savings. Any income deposited during the current month is not considered
				  savings.
(B) Jointly-owned accounts
				  are considered available to the person unless it can be established what part
				  of the account belongs to each of the owners, the money is separated, and the
				  joint account is dissolved.
(C) Per
				  Section 529A of Title 26 of the United States Code (26 U.S.C. §
													529A) and 56 O.S. §§ 4001.1 through
				  4001.5, contributions deposited into or distributions withdrawn from an
				  Oklahoma Achieving a Better Life Experience (ABLE) individual savings or trust
				  account or an ABLE account in any other state owned by the designated
				  beneficiary of the account and established to pay qualified disability expenses
				  (QDE) is excluded from income or resource consideration when determining the
				  person's eligibility to receive, or the amount of, any assistance or benefits
				  from local or state means-tested programs. A person may have only one ABLE
				  account. The client must provide documents to verify that the account meets
				  exemption criteria before the funds are excluded. Once the client verifies that
				  the savings or trust account is a valid ABLE account, no further account
				  information is required.
(i) A contribution
				  to an ABLE account by another individual is excluded unless the contribution
				  exceeds the annual federal gift tax exclusion, per
				  26
				  U.S.C. §
														2503(b). Any
				  money deposited in the account in a calendar year that is in excess of the
				  annual federal gift tax exclusion is considered a countable resource in the
				  month deposited.
(ii) A
				  distribution from an ABLE account that is retained after the month of receipt
				  is excluded in any month when spent on a QDE. Money withdrawn for reasons other
				  than to pay a QDE is considered as a countable resource for the month of
				  withdrawal.
(iii) A QDE is any
				  expense related to the blindness or disability of the individual and made for
				  the benefit of the individual. QDE's include, but are not limited to:
(I) education;
(II) housing;
(III) transportation;
(IV) employment, training, and
				  support;
(V) assistive technology;
(VI) health;
(VII) prevention and wellness;
(VIII) financial management and
				  administrative services;
(IX) legal
				  fees;
(X) ABLE account oversight
				  and monitoring;
(XI) funeral and
				  burial; and
(XII) basic
				  living.
(D) In
				  certain instances, a client may receive and access funds from a charitable
				  account in a TANF assistance unit member's name or in a third party's name.
(i) Charitable accounts are typically set up
				  for a specific purpose, such as to help pay for medical expenses not covered by
				  SoonerCare (Medicaid) or the person's insurance, funeral expenses, or living
				  expenses while a person is unable to work. Medical expenses may include travel
				  expenses to obtain treatment, such as fuel, meals, lodging, and
				  incidentals.
(ii) The worker must
				  verify:
(I) the purpose of the
				  account;
(II) the name(s) on the
				  account:
(III) the person(s) who is
				  authorized to withdraw funds from the account;
(IV) the dates and amounts of any deposits
				  into or withdrawals from the account within the most recent 12-month period;
				  and
(V) any limitations or
				  restrictions placed on the access to account funds.
(iii) When the account is in the name of a
				  TANF assistance unit member and there are no restrictions on accessing funds,
				  the funds in the account are considered as a countable resource. When funds are
				  periodically withdrawn from the account, the amount withdrawn is considered as
				  unearned income in the month withdrawn.
(iv) When the account is in the name of an
				  assistance unit member and funds are restricted for non-elective medical
				  expenses or funeral expenses, the funds in the account are excluded from
				  resource and income consideration. When the restricted funds can be released to
				  the client for other purposes, such as living expenses, the funds are
				  considered as unearned income in the month released.
(v) When the account is held and managed by a
				  third party on the client's behalf and the client does not have direct access
				  to the funds, the account is not considered as an available resource to the
				  client. When the third party disburses funds from the account to:
(I) vendors on the client's behalf, the
				  released funds are not considered as countable income; or
(II) the client for purposes other than
				  non-elective medical bills or funeral expenses, the funds are considered as
				  unearned income in the month received.
(vi) When charitable funds are collected and
				  released to the client in a one-time payment for non-elective medical expenses
				  or funeral expenses, the funds are excluded. When released for other purposes,
				  the one-time payment is considered as a nonrecurring lump sum payment, per
				  Oklahoma Administrative Code (OAC)
				  340:10-3-28.
(E) Economic impact payments received as a
				  result of a national or state emergency are considered as a rebate or advance
				  payment of a credit and are excluded as income; and from resource consideration
				  for a period of 12 months from receipt date for the purpose of determining
				  eligibility for benefits or assistance under any federal, state, or local
				  program financed, in whole or in part, with federal funds, per Section 103(d)
				  of the American Taxpayer Relief Act, as amended,
				  26
				  U.S.C. §
													6409.
(5)
Insurance policies and prepaid
				  funeral benefits.
(A)
Life
				  insurance policies.
The cash surrender value (CSV) less any loans or
				  unpaid interest of life insurance policies owned by members included in the
				  TANF cash assistance is counted as a resource. Dividends that accrue and remain
				  with the insurance company increase the amount of the resource. Dividends paid
				  to a person are considered as income. Assignment of the face value of a life
				  insurance policy to fund a prepaid burial contract is not counted as a
				  resource. In this instance, the amount of the face value of the life insurance
				  is evaluated according to (C) or, when applicable, (D) of this
				  paragraph.
(B)
Burial
				  spaces.
The value of a burial space for each family member whose needs
				  are included in the cash assistance or whose income and resources are
				  considered when computing the cash assistance is excluded from
				  resources.
(C)
Burial
				  funds.
Revocable burial funds not in excess of $1500 for each person
				  included in the assistance unit are excluded as a resource when the funds are
				  specifically set aside for the burial arrangements of the person, per 56 O.S.
				  § 165. Any amount in excess of $1500 for each person included in the
				  assistance unit is considered as a resource. Burial policies that require
				  premium payments and do not accumulate cash value are not considered prepaid
				  burial policies.
(i) The term burial funds
				  means a prepaid burial contract or trust with a funeral home or burial
				  association that is set aside to pay for the person's burial
				  expenses.
(ii) The face value of a
				  life insurance policy, when properly assigned by the owner to a funeral home or
				  burial association, may be used for purchasing burial funds as described in (i)
				  of this subparagraph.
(iii) The
				  burial fund exclusion must be reduced by the face value of life insurance
				  policies owned by the person and by the amounts in an irrevocable trust or
				  other irrevocable arrangement.
(iv)
				  Interest earned or appreciation on the value of any excluded burial funds is
				  excluded when left to accumulate and become a part of the burial
				  fund.
(v) When the person did not
				  purchase the prepaid burial contract or trust, even when the person's money was
				  used for the purchase, the person is not the owner and the prepaid burial funds
				  are not considered a resource to the person.
(D)
Irrevocable burial contract.
Oklahoma law provides that a purchaser of a prepaid burial contract may elect
				  to make the contract irrevocable. Irrevocability becomes effective 30-calendar
				  days after the contract is signed.
(i) When
				  the irrevocable election was made prior to July 1, 1986, and the person
				  received assistance on July 1, 1986, the full amount of the irrevocable
				  contract is excluded as a countable resource. This exclusion applies only when
				  the person does not add to the amount of the contract. Interest accrued on the
				  contract is not considered as adding to the contract. Any break in assistance
				  requires that the contract be reevaluated at reapplication.
(ii) When the effective date for the
				  irrevocable election or application for assistance is July 1, 1986, or later,
				  the amount in any combination of an irrevocable contract, revocable prepaid
				  burial contract or trust, and the cash value of unassigned life insurance
				  policies cannot exceed $10,000, per 56 O.S. § 165. Any amount in excess of
				  $10,000 is considered a countable resource. Accrued interest is not counted as
				  a part of the $10,000 limit, regardless of when it is accrued.
(iii) For an irrevocable contract to be
				  valid, the election to make it irrevocable must be made by the purchaser or the
				  purchaser's guardian or a person with power of attorney for the purchaser.
(E)
Medical
				  insurance.
When a person has medical insurance, payments made to the
				  medical provider or directly to the person and the payments are applied to the
				  cost of medical services, they are excluded from resource consideration. Any
				  amount remaining after payment for medical services is considered a resource.
(6)
Stocks, bonds,
				  mortgages, and notes.
The person's equity in stocks, bonds, including
				  United States Savings Bonds Series A through EE, mortgages, and notes are
				  considered as resources.
(A) The current
				  market value less encumbrances is the equity of stocks or bonds.
(B) The amount that can be realized from
				  notes, mortgages, and similar instruments, when offered for immediate sale,
				  constitutes a resource.
(7)
Non-negotiable resources.
Installment payments received on a note, mortgage, and similar instruments, for
				  which a buyer cannot be found, are considered as monthly income.
(8)
Vehicles.
The market value
				  of each vehicle owned by the person is established based on the average
				  trade-in value listed in the National Automobile Dealers Association (NADA)
				  books, other blue books, or one of the Internet websites that provide data on
				  the market value of used vehicles at no cost to the user. When the person
				  states the vehicle is worth less than the average trade-in value, the person
				  secures written appraisals from two persons familiar with current values. The
				  appraisals must state the appraised value of the vehicle and why it is worth
				  less than the average trade-in value. When there is a substantial unexplained
				  difference between the appraisals or between the blue book value and one or
				  more of the appraisals, the worker and the person jointly arrange for a third
				  party familiar with current values and acceptable to both, to establish the
				  true market value of the vehicle.
(A)
Exempt vehicles.
The equity value of up to $5,000 in one vehicle
				  is exempt from resource consideration. The amount of the equity in excess of
				  $5,000 is considered against the resource limit.
(B)
Other vehicles and personal
				  property.
The equity in other vehicles and personal property including
				  boats, travel trailers, motorcycles, motor homes, and campers is considered
				  against the resource limit. The current market value less encumbrances is the
				  equity. Only encumbrances that are verified are considered in computing equity.
(9)
Lump sum
				  payments.
A lump sum settlement that compensates for the loss of a
				  resource, such as an automobile, may be disregarded in the amount used to
				  replace the loss.
(A) The person has up to
				  30-calendar days to replace the loss. Extension beyond 30-calendar days may be
				  granted when completion of the transaction is beyond the person's control.
(B) Any amount remaining after the
				  replacement of the loss is considered as income.
(C) Income tax refunds, except for the
				  portion representing an earned income tax credit (EITC), must be treated as a
				  resource and considered available to the person upon receipt. Per the Tax
				  Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010
				  Public
				  Law 111-312, EITC payments received after December
				  31, 2009, as a result of filing a federal or state tax return are exempt as a
				  resource for 12 months following receipt.
(D) Retirement benefits received as a lump
				  sum payment at employment termination are considered a resource. These benefits
				  are not treated as income because the retirement contribution was regarded as
				  income in the month earned and withheld by the employer.
(10)
Individual Development Accounts
				  (IDA).
IDAs are dedicated savings accounts that are used for a qualified
				  purpose, such as purchasing a first home, education or job training expenses,
				  capitalizing a small business, or other purposes designated by the IDA
				  administrative entity.
(A) IDAs are managed
				  by community organizations and accounts are held at local financial
				  institutions.
(B) Cash deposits and
				  interest accrued from the deposits made by a person in an IDA up to $2,000 are
				  not considered as income or resources in determining TANF eligibility, per 56
				  O.S. § 230.54.
(C) The
				  account deposits must be made from earned income, EITCs, or tax
				  refunds.
(11)
Saving For Education, Entrepreneurship, and Downpayment (SEED) Initiative
				  accounts.
SEED accounts are dedicated savings accounts for persons 13
				  through 18 years of age that are used for a qualified purpose, such as
				  purchasing a first home, education or job training expenses, capitalizing a
				  small business, or other purposes designated by the administrative entity. SEED
				  accounts are managed by community organizations and accounts are held at local
				  financial institutions. Cash deposits and interest accrued from the deposits
				  made by a person in a SEED account up to $2,000 are not considered as income or
				  resources in determining TANF eligibility.