Asset Exclusions 400-28-65-09

(New 7/1/16 ML #3472)

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IM 5294

 

 

The following list is all of the assets that are excluded for all household members includes, but is not limited to:

1. Assets having cash value which are not accessible to the household.

Examples:

• Property in probate.
  
  
• Inheritances not yet received.
  
  
• Real property which the household is making a good faith effort to sell at a reasonable price and which has not been sold.
  
  If questionable the worker must verify that the real property is for sale and that the household has not declined a reasonable offer. Verification could include collateral contact or documentation, such as an advertisement for public sale in a newspaper of general circulation or a listing with a real estate broker.

2. Assets of Crossroads, Diversion, TANF or Transition households are not counted but must be documented and verified if questionable.
   
   
3. The home and surrounding property that is not separated by property owned by others. Roads running through the property will not affect the property exemption.
   
   The home and surrounding property remain exempt when temporarily unoccupied because of employment, training for future employment, illness, or un-inhabitability caused by casualty or natural disaster, if the household intends to return.
   
   Households not currently owning a home but who own or are purchasing property on which they intend to build or are building a permanent home, receive exclusion for that value.
   
   
4. Real property that is being farmed, produces rent, or is otherwise operated as a business by the applicant household is NOT counted in the determination of assets. The real property must be producing income commensurate with prevailing rental or leasing rates in the community. However, the income produced by this real property is included under the income limitations for eligibility.
   
   Payments received from mineral leases are included as income. Bonus payments on mineral leases (usually a one-time payment) are also to be added to the annual income.
   
   
5. Household or personal goods (i.e. furniture, appliances, jewelry, clothing, antiques, collections, etc.).
   
   
6. All vehicles of all household members.
   
   
7. All assets of all children in the household.
   
   
8. Any funds designated for educational costs.
   
   
9. The cash value of life insurance policies.
   
   
10. A loan from any source with written documentation or verification that the loan is subject to repayment.
    
    
11. All tax-preferred retirement accounts. These include but are not limited to:

• State Retirement
  
  
• Teacher's Retirement
  
  
• 457 plans
  
  
• 401(k) plans
  
  
• Federal employee thrift savings plans
  
  
• 403(b) plans
  
  
• 501(c)(18) plans
  
  
• Keogh plans
  
  
• Individual Retirement Accounts (IRA's)
  
  
• Simplified Employer Pension Plans (SEPs)
  
  

If withdrawn, they become an available asset in the month received.

12. Any funds in a trust or transferred to a trust, and the income produced by that trust if it is not available to the household.
    
    
13. Assets that are excluded by express provision of federal statute for American Indians or Alaska Natives. Usually a law will specify payments to members of a tribe or band, and the law will apply to the members enrolled in the tribe or band wherever they live. The individuals should have documentation showing where the payments originate. These payments include, but are not limited to the following:

1. Indian per capita payments distributed from judgment awards and trust funds up to $2,000 per person per payment. Amounts in excess of $2,000 are considered a countable asset.
   
   
2. Interests of Indians in trust or restricted lands.
   
   
3. Up to $2,000 per year of Individual Indian Monies (IIM) received by individual Indians which is derived from leases or other uses of individually owned trust or restricted lands.

Exception:

The $2000 exemption does not apply to inheritance, bonuses, and other income that is not derived from leases, trust or restricted land.

Client statement is acceptable verification of the amount in an IIM account unless:

1. The amount is more than $2000 for the year;
   
   
2. The client’s statement is questionable;
   
   
3. The IIM account includes countable income such as inheritance, bonuses, and other income that is not derived from leases, trust or restricted land.