Checking/Savings Accounts

Checking/Savings Accounts A. Funds maintained in checking and savings accounts are usually payable on demand. B. When an individual has unrestricted access to an account, all of the funds in the account are considered as a resource to the owner of the account, regardless of who deposited the funds. C. A fiduciary or trustee is authorized to act on behalf of or for the benefit of another person. A fiduciary’s right to withdraw funds is the same as the account owner’s right to withdraw them. D. Bank accounts must be verified either from the client’s own records (statements, print-outs, etc.) or agency verification to establish activity on the account and account balances. 1. DOM uses an asset verification system to request electronic verification of liquid assets held in financial institutions for purposes of determining Medicaid eligibility for applicants and recipients in programs with an asset test. 2. The applicant or recipient, their spouse, and any other person whose resources are required by law to be disclosed to determine eligibility, shall authorize the use of the asset verification system. 3. The responses from the asset verification system are compared to the client’s attestation and the resource limit to determine if they are reasonably compatible. If they are not, the client must provide verification. 4. The person designated as the owner in the account title is assumed to own all the funds in the account. 5. Absent evidence to the contrary, the person shown as the owner in the account title is assumed to have the legal right to withdraw funds and use them for support and maintenance. a) Example: An account is titled “In trust for John Jones and Mary Smith, subject to sole order of John Jones, balance at death of either to belong to survivor”. Since John alone has unrestricted access, none of the funds in the account could be considered Mary’s resources unless John is her fiduciary or his resources are deemed available to her. b) Example: An account is titled” George Dahey, restricted Individual Indian Money Account”. Mr. Dahy cannot withdraw funds from the account without the authorization of the Bureau of Indian Affairs. Therefore, the account is not his resource.