Types of Assets 430-05-45-05

Revised 06/01/15 ML3440)

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In determining the assets of a household, the following must be included and documented in detail.

 

Assets of a categorically eligible and TANF I & R households are not counted but must be documented and verified if questionable.

 

Liquid Assets

Types of liquid assets include but are not limited to the following:

• Cash on hand.
• Money in checking or savings accounts.
• Stocks or bonds.
• Lump sum payments (counted as assets in the month in which they are received unless excluded by Federal law).

 

To arrive at the countable cash value for any account or plan that applies penalties for early withdrawals, subtract the amount of the penalty (if any) from the value of the account or plan.

 

If the account or plan has been used as collateral or if a lien has been placed on the account or plan, only the equity value available is counted.

 

Money in a checking or savings account must not be counted as income and as an asset in the same month. Workers must exclude any current month's income deposited in a checking or savings account.

 

If a check has been written and sent to the payee, even if it has not yet been cashed, the money is not available for other purposes and is deducted from the account balance. The check register is used as verification of outstanding checks.

Many benefit programs deposit an individual’s monthly benefit onto a debit card. Any balance remaining on these debit cards is considered a liquid asset beginning the month following the month it was deposited on the card and counted as income.

EXAMPLES:

• Unemployment Insurance Benefits (UIB)

• Child Support Benefits

• Workforce Safety and Insurance (WSI)

• Social Security Administration Benefit (SSA)

Non-Liquid Assets

Types of non-liquid assets include but are not limited to the following:

• Personal property
• Licensed and unlicensed vehicles
• Buildings
• Land
• Recreational properties
• The value of a Contract for Payment

The value of a contract in which payments are current is equal to the total of all outstanding payments of principal required to be made by the contract, unless evidence is furnished that establishes a lower value.

The value of a contract in which payments are not current is an amount equal to the current fair market value of the property subject to the contract. If the contract is not secured by property, the value of the contract is the total of all outstanding payments of principal and past due interest required to be made by the contract.

In situations where the contractual right to receive money payments is not collectable and is not secured, the debt has no collectable value, and thus no countable asset value. An applicant or recipient can establish that a note has no collectable value if:

1. The debtor is judgment proof. A debtor is judgment proof when money judgments have been secured, an execution has been served against the debtor which has been returned as wholly unsatisfied, and the debtors affidavit and claims for exemptions exempt all of the debtors property; or
2. The applicant or recipient verifies the debt is uncollectible due to a statute of limitations. A satisfactory verification includes an attorney’s letter identifying the statute and facts that make a debt uncollectible due to a statute of limitations.

Clients should be encouraged not to forgive debts that have been determined to be uncollectible. Such debts could have a future value if the debtor ever accrues assets. At each review the worker must determine whether the judgments are still on file or whether the debtor has any change in assets.

The value of non-exempt assets (except for licensed vehicles not used for income producing purposes) is the equity value. The equity value is the fair market value less the amount owed.