302.03 Resource Definitions (Eff. 10/01/05) Type Definitions Examples POMS General Definition All assets, including real and personal property, which an individual or couple: Owns Can apply toward basic needs of food, clothing, and shelter – either directly or by conversion Is not legally restricted from use for support and maintenance Home Land Bank Accounts Burial Assets Life Insurance Automobiles Investments Liquid Resources Cash or items that are readily converted to cash (within 20 days) Stocks, bonds and mutual fund shares Checking and savings accounts, time deposits, CDs US Savings Bonds, treasury bills, notes Mortgages and promissory notes Non-Liquid Resources Are not cash and are not readily convertible to cash Building, land, and real property rights Vehicles Farm machinery and livestock Household and personal effects Non-cash business property Exclusion A resource, or part of a resource’s value, that is not considered in the eligibility determination (Refer to list in MPPM .) Countable Resources Resources remaining after all exclusions are applied. **The current or fair market value of resources must be verified and the equity value considered.
Procedure – Jointly Property Undue hardship would result if the co-owner: Uses the property as his principal of residence. Would have to move if the property was sold. Has no other readily available housing. Example: Mr. Allen and his son jointly own a piece of land. The son and his family live on the property and have no other place to live. Mr. Allen applies for Medicaid. The property is excluded because the sale would cause an undue hardship to his son. However, if the son another house nearby which was vacant and inhabitable, there would be other available housing. In this case, undue hardship would not exist. The value of Mr. Allen’s interest would be countable. 302.14.05 Bona fide Effort to Sell (Eff. 10/01/05) Real property may be excluded if an individual is making a reasonable, bona fide effort to sell it. Such efforts include listing it for sale with a real estate agent, media advertisements, and conducting regular open houses. The individual must maintain their effort to sell unless good cause exists. Good cause exists when circumstances beyond an individual's control prevent his taking the required actions to accomplish reasonable efforts to sell. In addition, he must accept a reasonable offer for the property. In the liberalized resource categories, the resource may be excluded beginning the month it is put up for sale. Procedure – Bona Fide Effort to Sell Types of Verification: Copy of listing with a realtor Advertisement in newspaper or other media “For ” sign on property Step for Eligibility Worker: Set up a tickler file to follow up on the effort to sell. Verification of the continued effort to sell must be documented in the case record. Examples of Good Cause:
Grantor The grantor is also the sole beneficiary. Mandatory Trust Trustee is required to pay trust earnings from the principal to the beneficiary or for his use. Trustee has no discretion. Example: Specific dollar amounts are to be paid out at the beneficiary’s 25th, 30th, and 35th birthdays. Residual Beneficiary Not a current beneficiary but will receive benefits under specific circumstances. Example: Children of the grantor receive the residual benefits of the trust at his spouse’s death or remarriage. Trust Property interest property is held by a trustee with the duty to use the property for another’s benefit Trust Beneficiary Person for benefit the trust exists. Does not hold legal title but has equitable ownership. Trust Earnings (Income) Examples: interest, dividends, royalties, rents. Unearned income if able to use these trust earnings for support Trustee Holds legal title to property for another person’s use or benefit. Generally, may not revoke the trust or use it for personal gaint. Trust Principal Property placed in the trust plus any earnings paid in and left to accumulate Totten Trust This is a tentative trust. The grantor makes himself/herself the trustee of his own funds for the benefit of someone else. If he dies, ownership passes to the beneficiary. 302.30.02 Instruments Similar to Trusts (Eff. 09/01/16) The following accounts and instruments are similar to trusts and may be titled as trusts but may or may not be considered a resource. Instrument Definition Difference from a Trust Conservator Account Established by a Court appointed conservator uses the account for the individual. Beneficiary is the owner even when the assets are not available. Procedure Verification: Copy of court order appointing conservator Copy of bank statements for the conservator account Treatment: Generally, counted as a resource. (Refer to MPPM .) Instrument Definition Difference from a Trust Patient Trust Account Held and maintained by institution Used for things such as toiletries, cigarettes, candy. Patient is the owner. Procedure:
Real estate brokers Local office of the Farmer's Home Administration or Agricultural Stabilization and Conservation Service for rural land Banks, savings and loan associations, mortgage companies, and similar lending institutions Official of the property tax jurisdiction (the individual's estimate, not the office's assessment) County Agricultural Extension Service Knowledgeable source statements must contain the following information: A description of the property and its condition; The estimated value of the property; The period of time to which the estimate applies; and The name and business address of the person providing the estimate. If the validity of the estimate is doubtful, obtain a second knowledgeable source statement. Always obtain a second estimate if the first estimate is less than the tax assessed value and the knowledgeable source cannot provide a reasonable explanation for the discrepancy. Appendix D Rebuttal Of Ownership of Assets Than Joint Bank Accounts (Eff. 10/01/05) If the applicant indicates that an asset does not belong to him, or did not belong to him at the time of transfer, he is required to provide documentary evidence of his claim. When the asset is not a checking or savings account, the individual must initially furnish a statement that includes: A description of the asset in question; The name, address, and telephone number of the alleged owner of the asset; A written explanation from the client, or the authorized representative, justifying and explaining the inconsistent record of ownership; and Statements and corroborative evidence from the alleged owner to include: Supporting equity ownership; or Indication that payments were made for the property, or indication of sustained payment of and/or expenses; or Indications that improvements were made (and paid for) to the property beyond those that would normally be expected of a non-owner. It is the applicant’s responsibility to provide adequate supporting evidence. The eligibility worker should forward all the evidence to the Bureau of Eligibility Administration at the
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