Valuation of Assets 510-05-70-60

(Revised 06/01 ML #2590)

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(N.D.A.C. Section 75-02-02.1-32)

 

It is not always possible to determine the value of assets with absolute certainty, but it is necessary to determine a value in order to determine eligibility. The valuation must be based on reasonably reliable information. It is the responsibility of the applicant or recipient, or the persons acting on behalf of the applicant or recipient, to furnish reasonably reliable information. However, because an applicant or recipient may not be knowledgeable of asset values, and particularly because that person may have a strong interest in the establishment of a particular value, whether or not that value is accurate, some verification of value must be obtained. If reasonably reliable information concerning the value of assets is not made available, eligibility may not be determined. Useful sources of verification include, but are not limited to:

  1. With respect to liquid assets: account records maintained by banking facilities.

  1. When establishing eligibility, the value of liquid assets is determined using the account records provided. If the verification includes more than one balance for the month for which eligibility is being determined, the lowest balance is used. If the applicant or recipient has excess assets, subtract any monthly income that was deposited into the account. Income subtracted from the account, however, cannot be deducted from a balance prior to the date the income was deposited.

For example: The low balance in an account is on May 2. The monthly income is deposited on May 7. The next low balance is on May 30. The monthly income cannot be subtracted from the May 2 low balance, but it can be subtracted from the May 30 balance.

  1. If an applicant or recipient provides verification of checks that were recently written, but that have not cleared the account by the end of the month, those expenditures can be used to further reduce the value of the account.

  1. With respect to personal property other than liquid assets:

  1. Publicly traded stocks, bonds and securities: stock brokers.
  2. Autos, trucks, mobile homes, boats, or any other property listed in published valuation guides accepted in the trade: the valuation guide. Use the "average trade-in" value for the vehicle without using any add-ons or deductions. The applicant or recipient may also provide verification of the true value from a reliable source if the vehicle is no longer listed in the valuation guide or if the applicant or recipient has reason to believe that the estimate is inaccurate.
  3. With respect to harvested grains or produce: grain buyers, grain elevator operators, produce buyers; and, for crops grown on contract: the contract.
  4. With respect to stock in corporations not publicly traded: appraisers, accountants.
  5. With respect to contractual rights to receive money payments: the Legal Advisory Unit of the Department (see 05-70-40).  
  6. With respect to other personal property: dealers and buyers of that property.

  1. Real property:

  1. With respect to mineral interests: appraisers, specializing in minerals, mineral buyers, geologists.
  2. With respect to agricultural lands: appraisers, real estate agents dealing in the area, loan officers in local agricultural lending institutions, and other persons known to be knowledgeable of land sales in the area in which the lands are located, but not the "true and full" value from tax records.
  3. With respect to real property other than mineral interests and agricultural lands: market value or "true and full" value from tax records, whichever represents a reasonable approximation of market value; real estate agents dealing in the area; and loan officers in local lending institutions. If a valuation from a source offered by the applicant or recipient is greatly different from the true and full value established by tax records, an explanation for the difference must be made, particularly if the applicant or recipient may be able to influence the person furnishing the valuation.

  1. Divided or partial interests. Divided or partial interests include assets held by the applicant or recipients, jointly or in common with persons who are not in the Medicaid unit; assets where the applicant or recipient or other persons within the Medicaid unit own only a partial share of what is usually regarded as the entire asset; and interests where the applicant or recipient owns only a life estate or remainder interest in the asset.

  1. Liquid assets. The value of a partial or shared interest in a liquid asset is equal to the total value of that asset.
  2. Personal property other than liquid assets and real property other than life estates and remainder interests. The value of a partial or shared interest is a proportionate share of the total value of the asset equal to the proportionate share of the asset owned by the applicant or recipient.
  3. Life estates and remainder interests.
  1. The life estate and remainder interest table must be used to determine the value of a life estate or remainder interest. In order to use the table, it is necessary to first know the age of the life tenant or, if there are more than one life tenants, the age of the youngest life tenant; and the market value of the property which is subject to the life estate or remainder interest. The value of a life estate is found by selecting the appropriate age in the table and multiplying the corresponding life estate decimal fraction times the market value of the property. The value of a remainder interest is found by selecting the appropriate age of the life tenant in the table and multiplying the corresponding remainder interest decimal fraction times the market value of the property. Refer to Appendix P for the Life Estate table.
  2. In some cases, the life tenant may suffer from a condition, which is likely to cause death at an unusually early age. That circumstance decreases the value of the life estate and increases the value of the remainder interest. The existence of such a condition must be verified by a medical statement which estimates the remaining duration of life in years. The estimated remaining duration of life may be used, in conjunction with the life expectancy table, to determine the comparable age for application of the life estate and remainder interest table. Refer to Appendix O for the life expectancy table.