1. Expanding Foundations
Resources

2. Goal and Objectives
Course Goal: Participants will accurately evaluate resources for Adult Financial customers
Objectives:
Determine which resources are countable and which are exempt
Determine the countable value of resources for an applicant/customer
Calculate penalty periods for Transfers Without Fair Consideration
Demonstrate ability to data enter resources into CBMS accurately including disposition

3. RESOURCE RACE!

4. Resources are real and personal property
The Basics
Definition:
Resources are real and personal property
Non-Liquid Resources
Difficult to convert into cash
Examples: homes, vehicles, land, valuable collections, etc.
Liquid Resources
Easy to convert into cash
Examples: checking and savings accounts, IRA accounts, etc.

5. The Basics
Most resources are countable. Resources owned by the customer, customer’s spouse, and customer’s sponsor(s) are all counted
All countable resources must be less than the resource limit(s) for the customer to be eligible

6. Resource Limits $2,000 for: $3,000 for: A married customer
An unmarried customer
A married customer
$2,000 for:
$3,000 for:

7. Availability of Resources
If a customer is actively attempting to sell, liquidate, or legally acquire a resource, the county department shall not delay action on an application
As with income, customers must attempt to access all resources available to them

8. Availability of Resources
Benefits should not be adjusted until the resources become available to the customer
Verify that the customer is attempting to access the resource
If the customer refuses or fails to make reasonable effort to secure the resource, it should be considered countable

9. Exempt Resources One vehicle per household
Household goods and personal effects
Primary residence customer resides in or lived in prior to becoming institutionalized
Retroactive SSI or SSA retirement or SSA disability lump sums

10. Exempt Resources Monies from a bona fide loan Income tax refunds
Proceeds from sale of primary home if funds are intended to purchase or build a replacement home
Proceeds from fire or casualty insurance

11. More Exempt Resources Irrevocable pre-paid burial funds
Revocable burial funds
Burial spaces required to meet the needs of immediate family
Life insurance with face value of $1,500 or less (all policies combined)
Exempt up to $1,500 each for customer and the customer’s spouse
OAP allows for higher face values
Property essential to customer’s self support
Non-business property producing goods necessary for daily activities
Non-business income producing property

12. Oil and Mineral Rights
EXEMPT if located on the land of the primary residence
The value of this resource can be obtained by
Using the Actual Value listed on the property assessment by the County Assessor
Written statement or collateral contact with companies who are in the business of selling, leasing, or buying oil/mineral rights

13. Income Producing Property
The income producing property rule:
Up to $6,000 of the equity value is exempt as a resource as long as the net annual income is at least 6% of the excluded equity value

14. Income Producing Property Example
Mr. Smith has mineral rights in North Dakota
The actual value obtained from the county assessor is $6,500
Mr. Smith provided a 1099 from last year listing income from royalties at $500

15. Income Producing Property Example
$6,000 Excludable value of resource
.06 Percentage of return
$360 - the amount of income a $6,000 resource must produce to be excluded
Since the rate of return is more than the 6%, $6,000 of the equity value of the resource can be excluded. So, the countable value of Mr. Smith’s mineral rights is $500

16. Countable Resources
Countable resources include but are not limited to:
Bank Accounts
Investment Accounts
Certificates of Deposit
Stocks and Bonds
Mutual Funds
IRAs and other Retirement Accounts
Secondary vehicles
Some life insurance and burial plans
Mortgages or promissory notes that can be converted to cash
Cash
Secondary property which does not meet an income producing exemption
Real property out of state

17. Shared Bank Accounts
The balance in a joint account shall be considered available to the customer in proportion to the number of persons on the account unless:
The co-owner of the account is the customer’s legal fiduciary (guardian, conservator, power of attorney, etc.) OR
The co-owner is on the account to assist the customer with paying bills, purchasing groceries, etc.

18. Life Insurance
Exemption applies individually to the customer and spouse as applicable
Term life policies should be checked to determine if cash value exists
If the total face value of all life insurance policies owned an individual is $1,500 or less, the cash value of the life policies is exempt

19. Life Insurance
This exemption only applies to policies which were purchased more than 48 months prior to the eligibility determination date with no additional contributions made in the past 48 months
For OAP only: If the customer’s total face value of all life insurance is more than $1,500 and the cash value of all the life policies is under $100,000, the cash value of those policies can also be exempted

20. Burial Plans
Revocable burial accounts and burial contracts are exempt up to $1,500 in value each for the customer and their spouse
Revocable burial funds over the $1,500 limit are countable as a resource
Irrevocable burial funds are not countable

21. Types of Burial Funds
Burial contracts are pre-paid final arrangements established at a funeral home, cemetery, crematory, or mortuary
The paid-up amount of the contract, not the face value, is counted toward the $1,500 exemption

22. Types of Burial Funds
Burial accounts or trusts are made with a bank, savings and loan association, or with a trust company
These funds are specifically set aside for burial and must state as such on the account. They cannot be combined with other types of funds
Are revocable during the lifetime of the customer and will be paid by the trustee only upon death of the customer for the purpose of covering burial expenses

23. Trusts Funded with Resources
Examples:
Pooled Trusts
Third Party Trusts
Disability Trusts
Family Trusts
There are several types of trusts that are funded with resources
The total balance of a trust account is considered as available unearned income to customer
Irrevocable burial trusts are exempt as a resource and not counted as income

24. Resource Summary Data Entry
Enter into CBMS
A bank account into CBMS
A burial asset
View Wrap Up

25. How Much Treasure? A Resource Counting Game…….
Is your customer eligible?
Exempt
$2,000
Countable
$3,000

26. A Transfer Without Fair Consideration (TWFC) is…
A Transfer of a resource to another person at a price that is below fair market value and was
Voluntary,
Made during the 36 months prior to application, and
For the purpose of becoming eligible for assistance; or
Made while receiving Adult Financial program benefits

27. What is the Penalty for a TWFC?
The value of the resource minus any encumbrances (a claim, like a mortgage or loan) is used to calculate a penalty period based on how many months of benefits the resource is valued
1 month of benefits:
AND-SO $217
AND-CS $750
OAP $788

28. TWFC Penalty Calculation
Add to the program’s grant standard any monthly medical costs, including health insurance premiums, for which the customer is responsible to pay
This is the TWFC monthly penalty value
AF Grant Standard
Monthly Medical Costs
TWFC Monthly Penalty Value

29. Calculating the Penalty Period
TWFC Monthly Penalty Value
Value of Resource
# Months of Ineligibility

30. Formula for TWFC $ Value of Resource — Encumbrances
Value Received for Resource =
TWFC Amount ÷
Adult Financial Grant Standard + Monthly Medical Costs
Penalty Period Rounded Down to Nearest Whole Number

31. When Does the Penalty Period Begin?
The Penalty Period begins on the first day of the month that the transfer occurred
Example:
An Old Age Pension applicant gave $5,000 to his son on January 10, He has a monthly medical expense of $134 which is his Medicare Premium
$788 + $134 = $922
$5,000 ÷ $922 = 5.42 months
The customer is ineligible for Old Age Pension for 5 months beginning January 1, 2018.

32. Deciding When To Impose a Penalty Period
The county department shall make a rebuttable presumption that the transaction was made for the purpose of becoming or remaining eligible for Adult Financial program benefits
The customer shall be given the opportunity to disprove the presumption. The presumption shall be nullified if the customer can demonstrate to the county department that the transfer was for another purpose

33. Hardship
There may be circumstances related to the transfer of resources that indicate that the customer was experiencing hardship just prior to the transfer
Examples:
Unemployment resulting in inability to pay for food, shelter and bills
Accident or severe illness requiring money to pay for medical care/services
Other hardship deemed reasonable by the county department using PPP

34. Data Entry for Transfer Without Fair Consideration
Dispose of a resource for a Transfer Without Fair Consideration
View Wrap Up for the Period of Ineligibility

35. Data Entry of Old Age Pension
Data enter a case into CBMS for a couple.
Wife is applying for Old Age Pension
Husband is applying for Medical Assistance only
View income deeming in Wrap Up
Understand how to run the case to prevent income deeming