Exempt Assets 400-19-55-05-30

(Revised 11/1/19 ML #3562)

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(N.D.A.C. 75-02-01.2-23)

(N.D.A.C. 75-02-01.2-25)

 

The following assets are exempt when determining asset eligibility for TANF households:  

  1. Achieving a Better Life Experience (ABLE) accounts -- This includes the exclusion of any contributions to the ABLE account of the individual and any distributions for qualified disability expenses.

    Since the funds in an ABLE account can only be withdrawn to be used for a 'qualified disability expense,' funds withdrawn from the account are also disregarded.

    A transfer of funds into an ABLE Account is subject to Disqualifying Transfer.

  2. Agent Orange Settlement Program -- Pursuant to Public Law 101-201, Agent Orange settlement payments are exempt.
  1. Basic Maintenance Items – Basic maintenance items such as clothing, furniture, appliances, and personal effects.
  1. Burial Plots -- A burial plot for each family member.
  1. Burial Prepayments or Deposits --Any prepayments or deposits which total $3000 or less, which are designated and maintained by an applicant or recipient for their burial.
  1. Children of Female Vietnam Veterans with Birth Defects Allowances -- These allowances, paid under Public Law 106-419 are exempt in determining eligibility and level of benefits under any federal or federally assisted program covering children with certain covered birth defects. This statute provides for monthly allowances, based on the degree of disability suffered by the child. The amounts range from $100 to $1272 monthly.
  1. Children of Vietnam Veterans Born with Spina Bifida Payments -- Payments made pursuant to Public Law 104-204 to children of Vietnam veterans who are born with spina bifida shall be exempt in determining TANF eligibility.
  1. Crime Victim Compensation -- Crime victim compensation is exempt.
  1. Earned Income Tax Credit -- Federal Earned Income Tax Credit (EITC) refunds are exempt in the month of receipt and month following receipt.

Note: These funds become a countable asset beginning the second month following the month of receipt.  

  1. Economic Stimulus Tax Rebates -- Economic Stimulus Tax Rebates are exempt assets in the month of receipt and the following two months.  

Note: These funds become a countable asset beginning the third month following the month of receipt.  

  1. Educational Loans, Grants, Scholarships and Stipends -- Student assistance programs, for both undergraduate and graduate students, are exempt.

Note: Any stipend received while attending training that is specifically identified to cover the cost of daily living expenses must be counted as unearned income, as it is intended to cover the same basic needs as those provided under TANF.  

  1. Home -- The house or mobile home which is the usual residence of the TANF household. A home is defined as including the land on which it is located provided the acreage does not exceed 20 contiguous acres, if rural, or two (2) contiguous acres, if located in town.

Temporary absences for reasons of medical necessity, educational plans, or other good cause, usually approved in advance, do not constitute loss of the exemption if the intent is to return to the home.

  1. Income Tax Refunds -- Federal or state income tax refunds are exempt for a period of 12 months from the month of their receipt.
  1. Indian Per Capita and Judgment Funds – Indian per capita funds and judgment funds awarded by either the Indian Claims Commission or the Court of Claims after October 19, 1973, while held in trust, are exempt assets. This includes interest and investment income accrued on such funds.

Note: The funds must be identifiable and distinguishable from other funds. If commingled with any other countable assets, these funds become a countable asset beginning the second month following the month commingled.

Purchases made using per capita or judgment funds and the interest or investment income accrued on such funds, while held in trust are exempt. However, once sold, the item purchased loses its exemption.

(Refer to Section 400-19-55-25, Disregard of Certain Income, for policy on the treatment of Indian Per Capita income.)

  1. Indian Trust or Restricted Land - Indian Trust or restricted lands are exempt assets. The proceeds from the sale of these lands are also exempt provided the proceeds are held with the original trust. When paid out, the proceeds remain exempt as long as they are not commingled with other funds.
  1. Individual Development Accounts (IDA) – Funds received through a grant made available under Section 403 of the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA – Public Law 104-193) to enable individuals to acquire a lasting asset after saving for an extended period of time. Currently, this grant is being administered by Community Action Programs.
  1. Individual Indian Monies Accounts -- The value of all interests in Individual Indian Monies Accounts held in trust are exempt from the asset limit pursuant to the Indian Judgment Distribution Act of 1973.

(Refer to Section 400-19-55-20-15, Countable Unearned Income Types, for policy on the treatment of income from Individual Indian Monies (IIM) accounts.)

  1. Loans --A loan from any source with written documentation verification that is subject to repayment.
  1. Minor Parents’ Parents Assets – The assets of minor parents’ parents shall be exempt in determining TANF eligibility.
  1. Radiation Exposure Compensation Act Settlement Payments - Payment settlements as a result of the Radiation Exposure Compensation Act (P.L. 101-426) are exempt as long as settlement payments and accrued interest are kept separate and apart from countable assets. Commingling of funds renders the entire account countable as an asset.
  1. Real Property Listed for Sale - If a TANF household owns real property and the household is making a good faith effort to sell the property, it shall be exempt from the asset limits.

Steps that demonstrate a "good faith" effort to sell require listing with a real estate agency where such services are available. If such services are not available, the "good faith" effort to sell must be demonstrated by the posting of "For Sale" signs and classified advertisements in local newspapers. Newspaper advertisements must be purchased at least every six months and appear five consecutive days in a daily newspaper or two consecutive weeks in a weekly newspaper. TANF households are required to set a realistic asking price and to publish the asking price. The asking price must be based on market analysis by a realtor, appraisal, or any other method which produces an accurate reflection of fair market value. A "good faith" effort to sell requires the acceptance of any offer that meets or exceeds 75% of the published asking price. Failure to demonstrate a "good faith" effort to sell will result in the loss of the real property asset exemption.

  1. Rental and Utility Rebates and Deposit Refunds - Rebates and deposits from rental and utility companies are exempt in the month of receipt and month following receipt.

Note:  These funds become a countable asset beginning the second month following the month of receipt.

  1. Retirement Plans – Funds held in employer-sponsored retirement plans are not countable while an individual is employed with the company holding the retirement plan. However, private retirement plans are countable.
  1. SSI Recipients Assets - The equity value of all assets owned by any SSI recipient are exempt.  Solely or jointly owned assets with an SSI recipient are considered exempt assets.
  1. Tribal High School Graduate/GED Payments - Payments from Tribes within North Dakota to tribal members who graduate from high school or receive a GED are considered non-recurring lump sum. These payments are an exempt asset in the month following the month of receipt.
  1. Vehicles - One vehicle limited to car, van, or pick-up normally used as a family vehicle of any equity value. The vehicle with the greatest equity value will be exempted.
  1. 529 Qualified Tuition Program Plan – Tax advantage program to help families save for future education expenses for a designated beneficiary. In North Dakota the program is administered through the Bank of North Dakota and is called College Save.
  1. 530 Coverdell Education Savings Accounts - Trusts created to pay the education expenses of the designated beneficiary.