Definitions Relating to Real and Personal Property

PURPOSE: This rule defines the real and personal property considered in determining eligibility for assistance and how the value of that property is determined. (1) In determining eligibility for public assistance, the Family Support Division (FSD) shall consider property of any kind or character which the claimant owns or possesses or has an interest in, of which s/he is the record or beneficial owner, less encumbrances of record. (2) For programs applying the Old Age Assistance (OAA), Permanent and Total Disability (PTD) criteria, and General Relief (GR) applicants and recipients, the home, as referenced in section 208.010, RSMo, is defined as the principal place of residence of the claimant. For town or city property, lots on which there is no dwelling and which adjoin the residence are considered a part of the home (regardless of the number of lots so long as they are in the same city block). For rural property, the acreage on which the home is located plus any adjoining acreage will be considered part of the home. (Property will be considered as adjoining even though a road may separate two (2) tracts.) (3) In determining eligibility for public assistance and blind pension, the value of real property will be its current market value if sold on the open market. (Original rule filed Nov. 4, 1954, effective Nov. 14, 1954.) (4) The value of a life insurance policy at any time shall be the cash surrender value of the policy, minus the amount of any lien, loan, accrued interest payments or assigned portion of the policy. (Original rule filed Feb. 20, 1947, effective March 2, 1947.) (5) Personal property is defined as household goods, jewelry, farm surpluses, livestock, farm or business machinery or equipment, automobiles and trucks, and similar items. (Original rule filed Feb. 20, 1947, effective March 2, 1947.) (6) The total amount on deposit in a joint bank account of which the applicant is one of the owners is considered as available to the applicant unless there is verification that the money placed in the account or a definite portion of it belongs to the other joint owner, who is not applying for or receiving public assistance. When both or all the owners of a joint bank account are applying for or receiving assistance, each is considered as owning his/her proportionate share of the account. If the applicant states s/he has not deposited any portion of the money in the account and past circumstances of the applicant indicate that this is reasonable, the total amount on deposit will not be considered as available to the applicant. (Original rule filed Feb. 6, 1975, effective Feb. 16, 1975.) (7) In those programs applying the OAA, PTD criteria, in GR cases, and in Aid to Families with Dependent Children (AFDC) cases, in certain instances as defined in sections (8)–(13) of this rule, the property will be considered as a resource which the applicant or recipient can and should use in meeting his/her needs and will not be eligible for public assistance. (Original rule filed Feb. 6, 1975, effective Feb. 16, 1975.) The eligibility factor of property as an available resource applies under the OAA criteria to an applicant, recipient, and spouse. In AFDC cases, the policy applies to a child and to a parent(s) or, as allowed by federal law or regulation, to stepparents or, if included in the grant, a needy nonparent caretaker relative or legal guardian with whom the child is living. In cases receiving GR, the policy applies to an applicant or recipient and spouse and children in the home under the age of twenty-one (21). If the GR applicant or recipient is under age twenty-one (21), it applies to his/her parent(s) in the home. In programs applying the PTD criteria, the policy applies to the applicant or recipient and spouse. (Original rule filed Nov. 3, 1950, effective Nov. 13, 1950. Amended: Oct. 20, 1967, effective Oct. 30, 1967. Amended: July 8, 1969, effective July 18, 1969. Amended: Feb. 6, 1975, effective Feb. 16, 1975.) (8) When an applicant or recipient of programs applying the OAA, PTD, or Aid to the Blind (AB) criteria, or the spouse with whom s/he lives owns real property which is not furnishing shelter for him/her, its current market value shall be considered an available asset and subject to the limits of section (12) of this regulation. When an applicant or recipient of programs applying the OAA, PTD, or AB criteria is under age eighteen (18) and the parent(s) with whom s/he lives owns real property which is not furnishing shelter for him/her, its current market value shall be considered an available asset and subject to the limits of section (12) of this regulation. For GR, when an applicant or recipient or the spouse with whom s/he lives owns real property which is not furnishing shelter for him/her, its current market value shall be considered an available asset and subject to the limits of section (13) of this regulation. When an applicant or recipient of GR is under age twenty-one (21) and the parent(s) with whom s/he lives owns real property which is not furnishing shelter for him/her, its current market value shall be considered an available asset and subject to the limits of section (13) of this regulation. In programs applying the OAA, PTD, AB criteria, or GR, the claimant will not be eligible for assistance on the basis of need; provided, all of the following criteria which apply are met (the value of an equity in a life estate and of burial lots shall be excluded from this computation). For AFDC cases, the limitation will be one thousand dollars ($1000), except that burial lots must be excluded from this computation. If the value of real property does not exceed the asset limits of section (12) or (13) of the rule, it shall be counted as a part of the combination of available resources in determining eligibility. (A) For real property in which the applicant or recipient has lived— 1. Twenty-four (24) months have elapsed since the last date on which either the claimant or spouse have occupied the dwelling except that the twenty-four (24)- month rule will not apply to real property owned by a claimant, spouse, or both, who is a patient in a domiciliary, practical or skilled nursing home, an intermediate care facility (ICF), state hospital or medical institution; the value of this property shall be excluded in determining eligibility on the basis of available resources during the period of time the applicant or recipient is a patient in a nursing home or institution; 2. In the AFDC program, real property in which the applicant/recipient has lived will be counted as a resource the month after the month in which it is vacated for other than a temporary purpose, unless the spouse from whom the claimant is separated and the claimant own the home jointly and the spouse continues to remain in the home. In this case, the home and forty (40) adjoining acres will not be included in determining equity in resources as long as the spouse remains in the home. In the event of divorce, the equity in the property immediately must be considered a resource; 3. If a claimant or couple owns two (2) pieces of property, they shall be required to designate one (1) as their homestead and the other immediately shall be considered as an available resource. Also, when two (2) claimants marry and each owns a home in which s/he has been living, they will be required to designate one (1) of the properties as their homestead, the other immediately shall be considered as an available resource; 4. For programs applying the OAA, PTD criteria and GR applicants and recipients for town or city property, lots on which there is no dwelling and which adjoin the residence are considered a part of the home (regardless of the number of lots so long as they are in the same city block). For AFDC applicants and recipients, the land on which the home is located, up to forty (40) acres, is considered a part of the home so long as the land is adjoining, in the same city block, and there is no other dwelling on the forty (40) acres; or 5. For programs applying the OAA, PTD criteria and GR applicants and recipients, for rural property, the acreage on which the home is located plus any adjoining acreage which is a part of that farming acreage which is a part of that farming unit will be considered as part of the home. For AFDC applicants and recipients, the land on which the home is located, up to forty (40) acres, which is part of that farming unit will be considered as part of the home so long as the land is adjoining and there is no other dwelling on the forty (40) acres. (Property will be considered as adjoining even though a road may separate two (2) tracts, if the property is farmed as a single unit.) (B) For all other real property—For programs applying the OAA, PTD criteria and GR applicants and recipients, the property is not being used directly by the claimant in the course of his/her business or employment or, if in use, is not producing an annual return consistent with its fair market value. For AFDC applicants and recipients, all other real property will be included in determining the one thousand dollar ($1000) limitation. (Original rule filed Oct. 24, 1951, effective Nov. 3, 1951. Amended: Nov. 21, 1952, effective Dec. 1, 1952. Amended: July 29, 1959, effective Aug. 29, 1959. Amended: Oct. 19, 1959, effective Oct. 29, 1959. Amended: July 8, 1969, effective July 18, 1969. Amended: July 23, 1970, effective Aug. 2, 1970. Amended: Dec. 22, 1972, effective Jan. 1, 1973.) (9) A single individual applying for or receiving assistance in programs applying the OAA or PTD criteria who owns insurance (over and above the first one thousand five hundred dollars ($1500) in face value) with a cash or loan value of one thousand dollars ($1000) or more through June 30, 2017, will not be considered eligible for assistance on the basis of available resources. Effective July 1, 2017, the cash or loan value in excess of the one thousand five hundred dollars ($1500) shall be considered an available asset and subject to the limits of section (12) of this regulation. A husband or wife living together may own insurance (over and above the first one thousand five hundred dollars ($1500) each in face value) in any combination with a total cash or loan value up to and including two thousand dollars ($2000) through June 30, 2017. Effective July 1, 2017, the cash or loan value in excess of the one thousand five hundred dollars ($1500) for each spouse shall be considered an available asset and subject to the limits of section (12) of this regulation. In GR cases, the one thousand five hundred dollar ($1500) face value exemption will apply to each person included in the GR case. When the claimant has deposited money with an individual, firm, or corporation as an advance payment for a funeral and the payment is safeguarded by burial insurance, trust fund, or joint bank account, the amount of money over one thousand five hundred dollars ($1500) deposited under such a plan will be considered a resource in the same manner as the cash or loan value of life insurance policies, if the contract is revocable. If the burial/funeral contract is irrevocable, the entire amount of money deposited will be excluded from available resources. If the claimant has both life insurance and prepaid burial (revocable or irrevocable), the one thousand five hundred dollar ($1500) exemption will apply to either or to any combination. The face value of an irrevocable burial contract will always be counted toward the one thousand five hundred dollar ($1500) exemption. If the cash or loan value of insurance is less than the amounts stated in this section, it shall be counted as part of the combination of available resources in determining eligibility as stated in section (12) for OAA or PTD, or in section (13) for GR of this rule. An individual applying for or receiving assistance in programs applying the OAA or PTD criteria may designate separately identifiable funds as set aside for burial for the individual or spouse up to a maximum of one thousand five hundred dollars ($1500). The amount of one thousand five hundred dollars ($1500) shall be reduced by—1) the total face value of insurance policies on the life of the individual or spouse which are owned by him/her or his/her spouse, the cash surrender value of which has been excluded in determining eligibility on available resources as provided in this section and in section (12) for OAA or PTD, or in section (13) for GR of this rule and 2) the value of any burial/funeral contract on the life of the individual or spouse. When this fund has been designated and all or a portion is excluded in determining available resources eligibility as provided in this section and in section (12) for OAA or PTD, or section (13) for GR of this rule, the interest or appreciation to the excluded portion of this fund (if left to accumulate) also shall be excluded in determining available resources eligibility, starting with interest or appreciation accrued on or after the beginning date of Medicaid eligibility. In AFDC cases, there shall be disregarded any prearranged funeral or burial contract, or any two (2) or more contracts, which provides for the payment of one thousand five hundred dollars ($1500) or less per family member. The face value of an irrevocable burial contract will always be counted toward the one thousand five hundred dollar ($1500) exemption. In AFDC cases, any family who owns revocable prepaid burials (over and above the first one thousand five hundred dollars ($1500) in equity value) or insurance with cash surrender value over one thousand dollars ($1000) will not be eligible for assistance. If the cash surrender value of revocable prepaid burials (over and above the first one thousand five hundred dollars ($1500) in equity value) or insurance is one thousand dollars ($1000) or less, it shall be counted as a part of the combination of available resources in determining eligibility as stated in section (13) of this rule. (Original rule filed Jan. 1, 1952, effective Jan. 10, 1952. Amended: July 29, 1959, effective Aug. 29, 1959. Amended: Oct. 19, 1959, effective Oct. 29, 1959. Amended: July 8, 1969, effective July 18, 1969. Amended: July 23, 1970, effective Aug. 2, 1970. Amended: Dec. 22, 1972, effective Jan. 1, 1973.) (10) In programs applying the OAA, PTD, or AB criteria, and GR cases, salable personal property, such as livestock, farm surplus, jewelry (except wedding and engagement rings owned by claimant or spouse), machinery, automobiles and trucks, and the like, shall be considered as an available resource when the following criteria are present: (A) In programs applying the OAA, PTD, or AB criteria, and GR cases, the equity based on current market value is one thousand dollars ($1000) or more, or more than two thousand dollars ($2000) in the case of a married person living with spouse. In GR cases involving two (2) or more persons eligible for GR, the limitation is more than two thousand dollars ($2000). Effective July 1, 2017, the equity value for programs applying the OAA, PTD, or AB criteria shall be considered an available asset and subject to the limits of section (12) of this rule; (B) If personal property is not being used by the claimant in the course of his/her business or employment or, if in use, is not producing an annual return consistent with its fair market value. An automobile or truck will not be considered as an available resource if it provides transportation for any of the following purposes: employment, marketing, school or church attendance, or obtaining medical care; (C) Household furnishings shall not be considered as available resources unless they are not being used by the applicant, in which case they are subject to the limitations in section (12) for OAA, PTD, or AB criteria, and section (13) for GR; (D) Effective July 1, 2017, in programs applying the OAA, PTD, or AB criteria, the first five thousand dollars ($5000) of medical savings accounts and independent living accounts shall be limited to deposits of earned income and earnings on that income while the individual is a participant; and (E) If the value of the personal property is less than the amounts stated in subsections (10)(A)–(D), it shall be counted as a part of the combination of available resources in determining eligibility as stated in section (12) for OAA, PTD, or AB, or section (13) for GR of this rule. (Original rule filed Jan. 11, 1952, effective Jan. 21, 1952. Amended: Dec. 3, 1952, effective Dec. 13, 1952. Amended: July 29, 1959, effective Aug. 29, 1959. Amended: Oct. 19, 1959, effective Oct. 29, 1959. Amended: July 8, 1969, effective July 18, 1969. Amended: July 23, 1970, effective Aug. 2, 1970. Amended: Dec. 22, 1972, effective Jan. 1, 1973.) (11) An AFDC applicant or recipient may not own personal property with equity greater than one thousand dollars ($1000). However the following personal property will not be included in this determination: (A) Tools, supplies, livestock, farm surplus, and similar items being used by the claimant in the course of his/her business. This does not include business or farm machinery; (B) Household furnishings, household goods, and personal effects used by the claimant; (C) The first fifteen hundred dollar ($1500) equity in one (1) automobile; and (D) Wedding and engagement rings and jewelry of limited value. (12) Any combination of available resources— real property, personal property, cash or securities, or cash surrender or loan value of life insurance (including money deposited in revocable prepaid burials) shall be considered in regards to the asset limits set below. The following asset limits apply to every MHABD program, except Blind Pension, the Breast and Cervical Cancer Treatment program, and the Qualified Medicare Beneficiary (QMB) or Specified Low-Income Medicare Beneficiary (SLMB) programs: (A) This subsection identifies the asset limits for MHABD before July 1, 2017. 1. A household that is applying for or receiving MHABD on the basis of being over age sixty-five (65) or permanently and totally disabled does not qualify for MHABD if— A. It is a one- (1-) person household, and the household has countable assets of one thousand dollars ($1,000) or more; or B. It is a two- (2-) person household, and the household has countable assets of two thousand dollars ($2,000) or more. 2. A household that is applying for or receiving MHABD on the basis of being blind does not qualify for MHABD if— A. It is a one- (1-) person household, and the household has countable assets of two thousand dollars ($2,000) or more; or B. It is a two- (2-) person household, and the household has countable assets of four thousand dollars ($4,000) or more; (B) Effective July 1, 2017, a household is not eligible for MHABD, regardless of whether eligibility is determined based on age, blindness, or permanent and total disability, if it has countable assets at or in excess of the following limits: (C) Effective July 1, 2021 (Fiscal Year 2022), the asset limit identified in section (5) of this rule shall increase every July thereafter at the same rate as the increase in the cost-of-living percentage of the Consumer Price Index for All Urban Consumers (CPIU), or its successor, as determined by the U.S. Department of Labor. The asset limit shall be rounded to the nearest five cents (5¢). 1. The percentage increase shall be based on changes in the CPI-U between July of two (2) years prior to the year in which the current fiscal year begins, and July of the immediately preceding year. A. Example: To determine the asset limit for Fiscal Year 2022 (FY22), the department shall measure the increase in the CPI-U between July 2019 and July 2020. If the CPI-U increased by one percent (1%) during that period, the asset limit for FY22 shall also increase by one percent (1%); and (D) Notwithstanding the provisions of this section, a person is not eligible for QMB or SLMB if the person’s household has countable assets in excess of the maximum resource level applied for the applicable year under 42 U.S.C. section 1395w-114(a)(3)(D), pursuant to 42 U.S.C. section 1396d(p)(1)(C). (13) In GR cases, any combination of one thousand dollars ($1000) or more for the applicant or recipient of GR would make that person ineligible (except that a husband and wife or two (2) or more persons in the household eligible for GR could have up to two thousand dollars ($2000) together). In AFDC cases, any combination of more than one thousand dollars ($1000) would make the family ineligible. (Original rule filed Jan. 11, 1952, effective Jan. 21, 1952. Amended: July 29, 1959, effective Aug. 29, 1959. Amended: Oct. 19, 1959, effective Oct. 29, 1959. Amended: July 8, 1969, effective July 18, 1969. Amended: July 23, 1970, effective Aug. 2, 1970.) (14) Notwithstanding the previously mentioned eligibility requirements with respect to resources, the following will apply to individuals meeting the definition of institutionalized spouses who begin a period of continuous institutionalization on or after September 30, 1989: (A) As used in this section, the definitions for the following terms shall apply: 1. Assessment shall mean a determination by the FSD of the total equity value of available resources (as stated in sections (6)- (13)) owned by the institutionalized spouse, the community spouse, or both, which may be requested at the beginning of a period of continuous institutionalization expected to last at least thirty (30) days or more; 2. Community spouse shall mean the husband or wife of an institutionalized spouse who does not reside in a medical hospital or a Medicaid-certified bed in a nursing facility (NF) and, if the institutionalized spouse is one who meets the definition in subparagraph (14)(A)3.C., the community spouse may not be one who meets those criteria; 3. Institutionalized spouse shall mean a claimant who resides in— A. A medical hospital; B. A Medicaid-certified bed in an NF, with an expected stay of at least thirty (30) days; or C. His/her own home and is assessed by the Division of Disability and Senior Services as needing both an NF level-of-care as defined in 19 CSR 30-81.030 and home- and community-based waiver services and is assessed to need these services for at least thirty (30) days, and is married to a person who meets the definition of a community spouse in paragraph (14)(A)2.; and 4. Period of continuous institutionalization shall mean a stay in a medical hospital or Medicaid-certified bed in an NF or when the Division of Disability and Senior Services determines a need for home- and communitybased waiver services which is expected to last thirty (30) days or more; and (B) The following shall apply with regard to resource eligibility for institutionalized spouses who begin a period of continuous institutionalization on or after September 30, 1989: 1. When an individual meets the criteria in subparagraph (14)(A)3.C., his/her gross monthly income shall be compared to one thousand twelve dollars ($1,012). If his/her gross monthly income is equal to or less than one thousand twelve dollars ($1,012), the FSD shall complete an assessment of assets as defined in paragraph (14)(B)2. When his/her gross monthly income is greater than one thousand twelve dollars ($1,012), s/he is not eligible for an assessment of assets as defined in paragraph (14)(B)2. The one thousand twelve dollar ($1,012) income limit shall be increased each year effective January 1 in accordance with the Social Security costof-living adjustment (COLA), beginning in   'DWHV(IIHFWLYH 2QH SHUVRQ +RXVHKROG 7ZR SHUVRQ +RXVHKROG -XO\±-XQH   -XO\±-XQH   -XO\±-XQH   -XO\±-XQH   2006; 2. At the beginning of the first period of continuous institutionalization, the institutionalized spouse, the community spouse, or a representative acting on behalf of either may request an assessment by the FSD of total equity in available resources owned by either or both in the month in which the period of institutionalization began or, in the case of an institutionalized spouse who meets the definition in subparagraph (14)(A)3.C. and who met that definition prior to January 1, 1993, January 1993 shall be substituted for the month in which the period of institutionalization began; 3. From this total, the FSD shall compute the spousal share, which shall be the greater of—1) twelve thousand dollars ($12,000) or 2) one-half (1/2) of the total, not to exceed sixty thousand dollars ($60,000). The twelve thousand dollar ($12,000) minimum and the sixty thousand dollar ($60,000) maximum shall be increased each January in accordance with the increase in the Consumer Price Index, beginning in 1990; 4. In determining initial Medicaid eligibility for the institutionalized spouse in this continuous period of institutionalization, the FSD again shall determine the total equity in available resources owned by the institutionalized spouse, the community spouse, or both, at the time of Medicaid request. From this total, the FSD shall deduct the amount of the spousal share as computed in paragraphs (14)(B)2. and 3. If the remainder is equal to or less than the appropriate resource maximum for a single person, the institutionalized individual, to the extent the individual expresses intent to transfer any excess resources to the community spouse, shall be initially eligible for Medicaid on the factor of available resources. Eligibility for Medicaid for individuals described in subparagraph (14)(A)3.C. who become resource eligible using the assessment described in paragraph (14)(B)2. cannot begin prior to the date the individual actually receives home- and community-based waiver services; 5. Any such individual who is determined initially eligible for Medicaid must transfer any resources above the appropriate resource maximum which are held in the individual’s name to the community spouse within ninety (90) days of notification of initial eligibility, unless good cause exists; 6. If good cause does not exist, the FSD shall consider any resources held in the name of the institutionalized spouse, including any jointly-owned resources, in determining continued Medicaid eligibility, effective ninety (90) days after notification of initial eligibility; 7. After the determination of initial eligibility for the institutionalized spouse, no resources of the community spouse not jointly owned with the institutionalized spouse shall be considered available to the institutionalized spouse in Medicaid determinations in that continuous period of institutionalization; 8. If either spouse establishes in a fair hearing that the spousal share (in relation to the amount of income generated by that amount) is inadequate to raise the community spouse’s own income to the amount determined in 13 CSR 40-2.200(5)(A), the spousal share may be adjusted to an amount adequate to provide the additional income. At the fair hearing the maximum amount of the institutionalized spouse’s income that may be made available to the community spouse under 42 U.S.C.1396r-5(d), shall be considered the community spouse’s own income; and 9. If a court has entered an order against an institutionalized spouse for the support of the community spouse, the amount of the order shall be substituted for the spousal share. AUTHORITY: sections 207.022 and 660.017, RSMo 2016.* Filing dates for original rules are shown in the text of the rule. This version filed March 24, 1976. Amended: Filed Feb. 10, 1978, effective May 11, 1978. Emergency amendment filed Feb. 20, 1979, effective March 2, 1979, expired June 10, 1979. Amended: Filed March 9, 1979, effective June 11, 1979. Emergency amendment filed May 12, 1982, effective May 22, 1982, expired Aug. 11, 1982. Amended: Filed May 12, 1982, effective Aug. 12, 1982. Amended: Filed March 14, 1983, effective June 11, 1983. Emergency amendment filed Dec. 21, 1983, effective Dec. 30, 1983, expired April 11, 1984. Emergency amendment filed Jan. 13, 1984, effective Jan. 23, 1984, expired April 11, 1984. Amended: Filed Jan. 13, 1984, effective April 12, 1984. Emergency amendment filed Oct. 3, 1984, effective Oct. 13, 1984, expired Jan. 11, 1985. Amended: Filed Oct. 15, 1984, effective Jan. 12, 1985. Emergency amendment filed Sept. 24, 1985, effective Oct. 4, 1985, expired Jan. 23, 1986. Amended: Filed Sept. 24, 1985, effective Dec. 26, 1985. Amended: Filed Sept. 6, 1988, effective Dec. 11, 1988. Emergency amendment filed Sept. 19, 1989, effective Sept. 30, 1989, expired Jan. 27, 1990. Amended: Filed Nov. 2, 1989, effective Jan. 26, 1990. Emergency amendment filed Dec. 18, 1992, effective Jan. 1, 1993, expired April 30, 1993. Emergency amendment filed Feb. 26, 1993, effective May 1, 1993, expired Aug. 28, 1993. Amended: Filed Dec. 18, 1992, effective June 7, 1993. Emergency amendment filed Dec. 13, 1993, effective Jan. 1, 1994, expired April 30, 1994. Amended: Filed Dec. 13, 1993, effective July 10, 1994. Emergency amendment filed Dec. 29, 1994, effective Jan. 8, 1995, expired May 7, 1995. Amended: Filed Jan. 12, 1995, effective July 30, 1995. Amended: Filed Sept. 6, 2005, effective April 30, 2006. Emergency amendment filed June 20, 2017, effective July 1, 2017, expired Feb. 22, 2018. Amended: Filed June 20, 2017, effective Jan. 30, 2018. *Original authority: 207.022, RSMo 2014 and 660.017, RSMo 1993, amended 1995. Estate of Pearl v. State Division of Welfare, 538 SW2d 922 (Mo. App. 1976). Old Age Assistance benefits were denied plaintiff based on finding of division that assets of recipient in the way of property not furnishing shelter to her were in excess of $2000 limit set by rule of the division. The court held the comparable sales used to determine the value of the property did not provide competent and substantial evidence upon the whole record to support the denial of benefits.