Countable Assets

Assets used to determine financial eligibility are: (A) Cash. (1) Definition. Cash includes currency, checks, or bank drafts, in the possession of, or available to, the filing unit. (2) Verification. The amount of cash is verified at application, eligibility reveiws and when a change is reported. The applicant's or client's declaration of the amount of cash available to the filing unit is sufficient verification unless contradictory information is received by the Department. (B) Bank Balances. ( 1) Definition. Bank balances may be in the form of savings, checking, trust accounts, term certificates, or other types of accounts held at banks, savings or loan institutions. Balances in a bank account are considered available when a member of the filing unit has both ownership of, and access to, the balance of funds in the account. Any portion of the bank balance or amount held in cash from the following sources is non-countable toward the asset limit: (a) Highway Relocation assistance payments, Urban Renewal Assistance payments, disaster relief payments used for relocation, and payments from private agencies used for relocation; (b) Any financial assistance paid to a student such as a financial aid package, grant, loan or scholarship for the purposes of obtaining a degree or certificate from an institution of higher education; (c) Any portion of a Workers' Compensation, property damage, personal injury, Compensation to Victims of Violent Crimes Act, death settlement or award, except for compensation for lost wages, that is received as a reimbursement for specified items and used to pay for such items; ( d) Earned income credits, whether received as an advance payment or as part or all of an income tax refund; (e) Any payment made under a Public Law that prohibits the payment from being included as income or a resource in determining eligibility for or the amount of benefits under any Federal or federally assisted program; (f) The value of Transitional Cash Assistance for the remainder of the cyclical month of issuance; (g) Transitional Cash Assistance benefits from a correction of an underpayment or fair hearing decision, in the month of receipt and the following month; (h) A loan verified by a written document, signed by the borrower and the lender, that states the borrower's intent to repay and the conditions of repayment, the terms of which specify the purpose of the loan and which cannot be used to meet current living costs. Joint Accounts. If an account is a joint bank account, securities as described in 106 CMR 704.120 (C) or a trust fund as described in 106 CMR 704.120 (D) the entire amount is a countable asset unless the member of the filing unit demonstrates otherwise. The member of the filing unit who states that he or she is not the owner, or is only partial owner, of the funds must verify the ownership of such funds. A member of the filing unit who states that he or she has no, or only partial, access to the funds, must verify lack of access. If the account is titled A and B, neither individual has access to the account without the consent of the co-holder. The applicant or client must submit a written statement from the co-holder denying such consent. If the applicant or client is unable to obtain the written statement of the co-holder, he or she may submit an affidavit stating that he or she does not have the co-holder's consent. If the account is titled A in trust for B, or A for B, A has full access to the account and B has no access to the account. (3) Verification of Access to and Ownership of Bank Balances. Claimed lack of access and ownership must be verified. If lack of access or ownership is verified, the funds will not be considered available to the filing unit. If the verification submitted does not demonstrate lack of access or ownership, the funds will be counted toward the asset limit. (a) A member of the filing unit may claim lack of access to a joint account when verification has been submitted that the co-holder has a history of physical or emotional abuse, or has threatened to abuse a member of the filing unit. Verification shall be court, law enforcement, medical, psychological, child protective service social service records, or a established good cause for noncooperation with child support. When the applicant or client cannot get the verification from one of the above sources, sworn statements from the applicant or client and at least one other individual with knowledge of the circumstances is acceptable. Such statements may be made orally and recorded in the case record. (b) Verification that the member of the filing unit does not have ownership of, or has only partial ownership of, the balance in the account must be shown by at least two of the following: 1. Documents showing the person who opened the account, the person whose money was used to open the account, or the co-owner of the account is not a member of the filing unit; 2. Documentation through federal or state tax records, that the person who declares the tax on the interest received is not a member of the filing unit; 3. Records showing the person who makes deposits and withdrawals is not a member of the filing unit; 4. A signed, notarized statement from the member of the filing unit and from either one of the other individuals listed on the joint account, or a person who opened or contributed to the account, that the member of the filing unit had no knowledge of the existence of the account; or 5. If only one of the above is available and if the other individual(s) listed on the account or who had opened or contributed to the account is unavailable or is unable or unwilling to provide a statement, the second proof may be a signed statement from the member of the filing unit stating under penalties of perjury of the ownership of funds in the account. (4) Verification of Account Balances. Verification of the current balance of each account is mandatory at application, at eligibility reviews and when a change is reported. The amount is verified by bank books or bank statements that show the balance within 45 days of the date of application or redetermination. Verification is not required at redetermination when the client states the balance is $25 or less and the balance was $25 or less at the last eligibility determination and the account balance, in combination with other assets, is not over the asset limit. The statement shall be recorded in the case record. (C) Securities. Definition. Stocks, bonds, options, futures contracts, debentures, mutual, exchange- traded and money market funds; government, bank, corporate or promisory notes; and other securities are countable assets. Tradeable securities are valued at the most recent closing price, and nontradeable securities are valued at current equity value. A security for which there is no market or which is inaccessible is noncountable. (2) Joint Accounts. If an account is a joint bank account, securities as described in 106 CMR 704.120 (C) or a trust fund as described in 106 CMR 704.120 (D) the entire amount is a countable asset unless the member of the filing unit demonstrates otherwise. The member of the filing unit who states that he or she is not the owner, or is only partial owner, of the funds must verify the ownership of such funds. A member of the filing unit who states that he or she has no, or only partial, access to the funds, must verify lack of access. If the account is titled A and B, neither individual has access to the account without the consent of the co-holder. The applicant or client must submit a written statement from the co-holder denying such consent. If the applicant or client is unable to obtain the written statement of the co-holder, he or she may submit an affidavit stating that he or she does not have the co-holder's consent. If the account is titled A in trust for B, or A for B, A has full access to the account and B has no access to the account. (3) Verification of Access to and Ownership of Bank Balances. Claimed lack of access and ownership must be verified. If lack of access or ownership is verified, the funds will not be considered available to the filing unit. If the verification submitted does not demonstrate lack of access or ownership, the funds will be counted toward the asset limit. (a) A member of the filing unit may claim lack of access to a joint account when verification has been submitted that the co-holder has a history of physical or emotional abuse, or has threatened to abuse a member of the filing unit. Verification shall be court, law enforcement, medical, psychological, child protective service social service records, or a established good cause for noncooperation with child support. When the applicant or client cannot get the verification from one of the above sources, sworn statements from the applicant or client and at least one other individual with knowledge of the circumstances is acceptable. Such statements may be made orally and recorded in the case record. (b) Verification that the member of the filing unit does not have ownership of, or has only partial ownership of, the balance in the account must be shown by at least two of the following: 1. Documents showing the person who opened the account, the person whose money was used to open the account, or the co-owner of the account is not a member of the filing unit; 2. Documentation through federal or state tax records, that the person who declares the tax on the interest received is not a member of the filing unit; 3. Records showing the person who makes deposits and withdrawals is not a member of the filing unit; 4. A signed, notarized statement from the member of the filing unit and from either one of the other individuals listed on the joint account, or a person who opened or contributed to the account, that the member of the filing unit had no knowledge of the existence of the account; or 5. If only one of the above is available and if the other individual(s) listed on the account or who had opened or contributed to the account is unavailable or is unable or unwilling to provide a statement, the second proof may be a signed statement from the member of the filing unit stating under penalties of perjury of the ownership of funds in the account. (4) Verification of Account Balances. Verification of the current balance of each account is mandatory at application, at eligibility reviews and when a change is reported. The amount is verified by bank books or bank statements that show the balance within 45 days of the date of application or redetermination. Verification is not required at redetermination when the client states the balance is $25 or less and the balance was $25 or less at the last eligibility determination and the account balance, in combination with other assets, is not over the asset limit. The statement shall be recorded in the case record. (C) Securities. (1) Definition. Stocks, bonds, options, futures contracts, debentures, mutual, exchange­ traded and money market funds; government, bank, corporate or promisory notes; and other securities are countable assets. Tradeable securities are valued at the most recent closing price, and nontradeable securities are valued at current equity value. A security for which there is no market or which is inaccessible is noncountable. (2) Verification. Verification of the current value of each security owned is mandatory at application, eligibility reviews, and when a change is reported. Verification of the value of a security can be made by: (a) A statement from the individual, corporation, licensed stockbroker, bank or government agency that issued the security; (b) An official publication showing the date and closing price; (c) A statement from any bank or other financial services institution of the current value of the security. (D) Trust Funds. Any funds, except for the first $150,000 of lump sum income from a personal injury settlement meeting the requirements of 106 CMR 704.240 (B)(5), held in a trust to the extent that it is available to the assistance unit. Funds are considered available when: (1) The trust is owned or operated by a member of the assistance unit; (2) A member of the assistance unit has the power to revoke the trust or change the name of the beneficiary; There are no court imposed limitations placed on the use of funds or the imposed limitations include covering the costs of day to day living; (4) Trust investments made on behalf of the trust directly involve, or assist, a business or corporation owned or operated by a member of the assistance unit. Verification is any relevant legal or financial statement showing the owner, terms and amount of the trust. (E) Cash Surrender Value of Life Insurance Policies. Requirement. A life insurance policy with no cash surrender value (CSV) or with a cash surrender value that is less than the asset limit for the program is a non-countable asset. (2) Verification. The verification of the CSV of all life insurance policies is mandatory at application, eligibility reviews and at times of reported changes in the value. CSV is verified by the Table of Loan and CSV amounts located on the actual policy, or by a written statement from the issuing company or its representative or online printout. If the policy is paid up or has been in effect longer than the number of years covered by the table, verification of the CSV must be obtained from the issuing company or agent. (F) Real Estate. (1) Requirement. The equity value of all real estate owned by a member of the filing unit other than the principal place of residence and the land on which it rests, is a countable asset when it is accessible to the filing unit. Property is not considered countable if inaccessible to the member of the filing unit, such as when ownership is the subject of legal proceedings. Equity value is the fair market value less liens or encumbrances. Fair market value is the price for which real estate will sell in the area. Verification. The fair market value and equity value of all countable real estate is verified at application, eligibility reviews and at times of reported change. Fair market value is verified by a copy of the tax bill or the property tax assessment most recently issued by the taxing jurisdiction, provided that this assessment is not: (a) A special purpose assessment; (b) Based on a fixed rate per acre method; or (c) Based on an assessment ratio or providing only a range. Verification of liens or encumbrances on the property shall be by a copy of documents showing the outstanding balance of the loan. If a current property tax assessment is not available or the grantee wishes to rebut the fair market value determined by the Department, a comparable market analysis or a written appraisal of the value of the property from a licensed real estate agent or broker, a real estate appraiser, bank, or other lending organization, or an official of the local real estate property tax jurisdiction establishes the fair market value. The grantee can rebut the fair market value determined by the Department at any time. (G) Retirement Accounts and Pensions. Retirement accounts and pension funds, less any early withdrawal penalties, are countable unless inaccessible to the applicant or client. (2) Verification. Verification of the current value of each security owned is mandatory at application, eligibility reviews, and when a change is reported. Verification of the value of a security can be made by: (a) A statement from the individual, corporation, licensed stockbroker, bank or government agency that issued the security; (b) An official publication showing the date and closing price; (c) A statement from any bank or other financial services institution of the current value of the security. (D) Trust Funds. Any funds, except for the first $150,000 oflump sum income from a personal injury settlement meeting the requirements of 106 CMR 704.240 (B)(5), held in a trust to the extent that it is available to the assistance unit. Funds are considered available when: (1) The trust is owned or operated by a member of the assistance unit; (2) A member of the assistance unit has the power to revoke the trust or change the name of the beneficiary; (3) There are no court imposed limitations placed on the use of funds or the imposed limitations include covering the costs of day to day living; (4) Trust investments made on behalf of the trust directly involve, or assist, a business or corporation owned or operated by a member of the assistance unit. Verification is any relevant legal or financial statement showing the owner, terms and amount of the trust. (E) Cash Surrender Value of Life Insurance Policies. (1) Requirement. A life insurance policy with no cash surrender value (CSV) or with a cash surrender value that is less than the asset limit for the program is a non-countable asset. (2) Verification. The verification of the CSV of all life insurance policies is mandatory at application, eligibility reviews and at times ofreported changes in the value. CSV is verified by the Table of Loan and CSV amounts located on the actual policy, or by a written statement from the issuing company or its representative or online printout. If the policy is paid up or has been in effect longer than the number of years covered by the table, verification of the CSV must be obtained from the issuing company or agent. (F) Real Estate. ( 1) Requirement. The equity value of all real estate owned by a member of the filing unit other than the principal place of residence and the land on which it rests, is a countable asset when it is accessible to the filing unit. Property is not considered countable if inaccessible to the member of the filing unit, such as when ownership is the subject oflegal proceedings. Equity value is the fair market value less liens or encumbrances. Fair market value is the price for which real estate will sell in the area. (2) Verification. The fair market value and equity value of all countable real estate is verified at application, eligibility reviews and at times ofreported change. Fair market value is verified by a copy of the tax bill or the property tax assessment most recently issued by the taxing jurisdiction, provided that this assessment is not: (a) A special purpose assessment; (b) Based on a fixed rate per acre method; or (c) Based on an assessment ratio or providing only a range. Verification of liens or encumbrances on the property shall be by a copy of documents showing the outstanding balance of the loan. If a current property tax assessment is not available or the grantee wishes to rebut the fair market value determined by the Department, a comparable market analysis or a written appraisal of the value of the property from a licensed real estate agent or broker, a real estate appraiser, bank, or other lending organization, or an official of the local real estate property tax jurisdiction establishes the fair market value. The grantee can rebut the fair market value determined by the Department at any time. (G) Retirement Accounts and Pensions. Retirement accounts and pension funds, less any early withdrawal penalties, are countable unless inaccessible to the applicant or client.