Section 230

MAABD MAABD MAABD MAABD MAABD MAABD MAABD MAABD

E-400

RESOURCES

OVERVIEW

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

RESOURCES

E-400 OVERVIEW

Resources are excluded in the Medical assistance eligibility determination for MAGI

based eligibility groups.

Resources must be evaluated and verified for MAABD medical assistance

determinations.

Resources are defined as those assets, both real and personal, which an individual owns

and can apply, either directly or by sale, to meet basic needs of food, clothing, shelter,

and medical costs.

Real property is land, including buildings or immovable objects attached permanently to

the land.

Personal property is any property that is not real property. The term encompasses such

things as cash, tools, life insurance policies, mobile homes, automobiles, etc.

Any income which is retained the month following the month of receipt and later, is subject

to resource evaluation.

Resources are evaluated at market value less encumbrances. When the combined value

of all countable resources does not exceed the resource limit, verification of

encumbrances is not necessary.

When the value of countable resources is under the resource limit on any day of the

month, the customer is eligible for that month.

The Asset verification System (AVS) is used to verify resources and is considered verified

upon receipt, unless questionable. If questionable, or if the AVS fails to return

information*, follow regular procedures to obtain verification. AVS is not used for MAABD

programs in which resources are not countable (e.g., individuals who are receiving SSI).

*Not all financial institutions participate in the AVS. If a customer reports a financial

account and it does not return through AVS, follow regular procedures to obtain

verification.

E-405 RESOURCE LIMITS

• Resource limits for home-based waivers and institutional groups are $2,000 for

individuals and $3,000 for couples.

• Resource limits for QMB, SLMB and QI are $9,090 for an individual OR $13,630

for a couple when one OR both spouses are applying. When countable resources

exceed the limit, the customer is ineligible.

• Resource limits for QDWI are $4,000 for an individual or $6,000 for a couple when

one OR both spouses are applying.

• See MAABD Income chart for the spousal impoverishment maximum resource

share that can be transferred to the community spouse of an institutionalized

individual or home and community-based waiver recipient.

MAABD MAABD MAABD MAABD MAABD MAABD MAABD MAABD

E-410

RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

18 Oct 01 MTL 05/18 TYPES OF RESOURCES (not all inclusive)

ABLE ACCOUNTS-ANNUITIES

E-410 TYPES OF RESOURCES (not all inclusive)

RESOURCE TYPE

DESCRIPTION

ABLE ACCOUNTS

(Achieving a Better Life Experience)

1. Personal Property

2. Conditional Exclusion

ABLE Accounts are savings programs which

allow individuals with disabilities that began prior

to age 26 an opportunity to save and invest

money without losing eligibility for certain

benefits programs, such as Medicaid, SSI and

RSDI. Money in ABLE accounts may be spent

for education, housing, transportation,

employment, health care, personal support

services, legal fees, funeral and burial

expenses, and other approved expenses.

Currently, the maximum amount an individual

can deposit into an ABLE account annually is

$15,000.00. Contributions to an individual’s

ABLE account may be made by anybody. The

first $100,000.00 does not count against the

asset limit for Medicaid. Anything over

$100,000.00 is countable.

ANNUITIES

1. Personal Property

2. Conditional Exclusion

Annuities are usually purchased to provide a

source of income for retirement. A lump sum of

money is paid to a bank or insurance company

and in return, the individual is promised regular

payments of income. These payments continue

for a fixed period or for as long as the individual

lives, thus creating an ongoing income stream.

The value of an annuity is the amount of money

an individual can currently withdraw from the

fund after the penalty deduction. This amount,

if any, is a countable resource.

Verification: (not all inclusive)

- Documents from the source of payment

- Copy of the annuity agreement

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RESOURCES

TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

BANK ACCOUNTS

Checking, Savings, Time

Certificates, Money Markets,

Certificates of Deposit (CD)

1. Personal Property

2. Counted

Refer to Individual Development

Account (IDA) section for

consideration of funds deposited

and interest earned on funds in an

IDA savings account.

To determine the countable resource amount,

consider the low balance of the account on any

given day of the calendar month.

Any income/interest deposits in a calendar

month are not a resource until the month

following the month it is posted to the account.

Rebutting ownership does not apply for spousal

resource determinations.

A. Ownership

The person designated as owner of the

account owns all the funds in the account.

Exception: If the owner is acting as an

agent for another individual, monies

deposited and disbursed on behalf of that

individual are not countable.

B. Shared Ownership (joint account)

Account holders are:

- married couples

- parent and minor child

When deeming applies in determining

eligibility for the coverage group (e.g., Public

Laws, institutionalized less than 30 days, etc.),

rebutting ownership is NOT REQUIRED

because deeming resources takes precedence.

When deeming does not apply (e.g., home

based waivers, institutionalized at least 30 days,

etc.), the account resource balance will be

presumed available to the customer unless the

customer can successfully prove all or part of

the funds are not his/hers. Exception: cases

where spousal impoverishment applies,

equal division of resources applies or when

the customer is acting as an agent for the

other account holder(s); rebutting

ownership is NOT REQUIRED.

Account holders ARE NOT:

- married couples

- parent and minor child

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E-410

RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

BANK ACCOUNTS (Cont’d.)

RESOURCE TYPE

DESCRIPTION

BANK ACCOUNTS

(Cont'd)

The customer has successfully disproved

ownership for all months of requested coverage

when proof from the financial institution shows: 1)

the customer’s name has been removed from the

joint account; OR 2) access to the account has

been restricted and the funds are not available to

the customer; OR 3) the account has been changed

so only the customer’s money is in the account.

If the customer can show they are in the process of

removing their name from the account, but the

action cannot be completed for a time due to a

specified reason, the customer has successfully

disproved ownership. The case manager should

set a future action alert to verify the account was

closed/name removed.

EXAMPLE: Customer and daughter are joint

account owners. The customer’s SSA is directly

deposited into the account. Customer disproves

ownership of the account and provides a statement

from Social Security she has requested her check

go directly to another account in her name and a

statement from the bank requesting the removal of

her name from the account. The statement from

the bank indicates they will not remove her name

until Social Security gets the direct deposit

transferred to the other account, which will take

approximately two months. If all other criteria are

met, the account is successfully disproved. The

case would be processed, and the case manager

should set a future action alert to verify the removal

of her name from the account.

In cases where the customer did not successfully

disprove ownership, notify the customer in writing

that ownership was not disproved and explain how

income and resources are being evaluated.

F. Customer Does Not Disprove Ownership

The account will be considered the customer’s

resource.

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E-410

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

BANK ACCOUNTS (Cont’d.) – BURIAL FUNDS

RESOURCE TYPE

DESCRIPTION

BANK ACCOUNTS

(Cont'd)

Verification: (not all inclusive)

- For public guardianship cases only, the ledger

card (aka PA Transaction Journal, PA Journal

Report or PA Transaction Report) is the

primary source for verifying liquid resources.

- Copy of bank statement

- Copy of deposits and withdrawals

- Copy of canceled checks

BURIAL FUNDS

1. Personal Property

2. Conditional Exclusion

Funds set aside for burial include burial insurance,

revocable burial contracts, burial trusts, and any

separately identifiable assets which are clearly

designated for expenses connected with burial,

cremation, or other funeral arrangement.

("Separately identifiable" means the funds must be

kept separate from the individual's other assets.)

Only financial instruments can be claimed by the

customer/representative to be funds set aside for

burial and must be clearly designated as such.

Financial instruments include cash, burial

contracts, financial institution accounts, stocks,

bonds, life insurance policies, etc.

Burial funds cannot be co-mingled with any non-

burial related assets. Note: If money is withdrawn

from funds designated as set aside for burial, these

funds are no longer considered "designated" and

cannot meet the burial exclusion.

Designation is either by legend on an account or by

declaration. Declaration is a signed statement

under penalty stating the purpose for which the

funds were set aside and the date on which the

funds were set aside. Within the statement is the

value and the owner of the assets, for whose burial,

the form in which the funds are held and the date

on which the person first considered the funds set

aside for burial. The funds can be excluded

effective with the latest of:

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E-410

RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

BURIAL FUNDS (Cont’d.)

RESOURCE TYPE

DESCRIPTION

BURIAL FUNDS

(Cont'd)

a. The date of application (if the funds were

considered set aside before the month of

application); OR

b. The month following the month in which the

funds were considered set aside, unless

there is evidence the funds were used and

replaced after that date.

Dedicated-cumulative burial fund accounts permit

monies from different individuals to be placed into

one account as long as all the money in the

account is for a dedicated purpose. The money

deposited into this account must consist of burial

funds only. These accounts, their use,

establishment and protocol must be approved by

the Chief of Eligibility & Payments. The dedicated-

cumulative burial fund utilized by the Clark County

and the Washoe County Public Guardian’s office

has been approved for use.

THE FOLLOWING EXCLUSIONS APPLY TO

BURIAL FUNDS:

a. Any interest accrued in burial accounts which

is not paid but left to accumulate as part of the

funds;

b. Up to the maximum of $1,500 each for the

customer and/or customer’s spouse.

Only the cash surrender value (CSV), less interest,

of the policy, contract or insurance OWNED by the

customer/ customer’s spouse is applied towards

the $1,500 exclusion. Obtain verification from the

mortuary/insurance company of the CSV. Burial

funds in excess of $1,500 will be a countable

resource.

THE $1,500 MAXIMUM MUST BE REDUCED BY:

a. The amount of funds held in an irrevocable

burial trust, irrevocable burial contract or other

irrevocable arrangement available to meet

burial expenses.

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RESOURCES

TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

BURIAL FUNDS (Cont’d.)

RESOURCE TYPE

DESCRIPTION

BURIAL FUNDS

(Cont'd)

NOTE: Any burial trusts, contracts or other

arrangements issued in Nevada are not

considered irrevocable by state law. These

are available resources.

Other burial arrangements issued outside of

Nevada may be considered irrevocable. Verify with

the state where they were issued to determine

availability.

b. The FACE value of any life insurance policy

owned by the customer/ customer’s spouse if

the CSV was excluded in determining

countable resources. NOTE: Life insurance

with no provision for a CSV will not affect the

burial exclusion.

EXAMPLE: Customer has a life insurance policy

with a FACE value of $1,200 and a CSV of $500.

Because the FACE value was less than $1,500, the

$500 was excluded as a resource.

The customer also has funds set aside for burial in

the amount of $2,000 (i.e., CSV of a burial policy).

To determine the amount of burial which can be

excluded:

a) Subtract the $1,200 FACE value of the

excluded life insurance policy from the

$1500 leaving $300 left of the exclusion.

b) Subtract the remaining $300 exclusion

from the $2,000 burial funds, leaving a

balance of $1,700. The $1,700 is counted

toward the resource limit.

Verification: (not all inclusive)

– Copy of policy, contract, trust, financial

instrument, etc.

– Form 2006 designating burial funds

– Form 2605 Insurance Policy Information

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

BURIAL SPACES AND RELATED ITEMS – CASH ON HAND

RESOURCE TYPE

DESCRIPTION

BURIAL SPACES AND RELATED

ITEMS

1. Personal Property

2. Excluded

A burial space or item held for the burial of the

customer, customer’s spouse, or any other

member of the customer’s immediate family is

an excluded resource, regardless of value.

The burial space exclusion is in addition to and

has no effect on the burial funds exclusion.

a. Burial spaces are defined as burial plots,

gravesites, crypts, mausoleums, caskets,

urns, niche or other repositories

customarily used for the remains of

deceased persons.

Burial items may include, but are not limited to

vaults, headstones, markers, or plaques, burial

containers (e.g., for caskets) and arrangements

for the opening and closing of the gravesite and

endowment care.

b. Immediate family includes a customer’s

minor and adult children, stepchildren, and

adopted children; brothers, sisters,

parents, adoptive parents and spouses of

those persons.

Verification: (not all inclusive)

– Copy of policy, contract or other document

itemizing items

CASH ON HAND

1. Personal Property

2. Counted

Currency held by customer at home, on their

person, etc.

Verification: (not all inclusive)

– Customer’s statement

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E-410

Division of Welfare and Supportive Services

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

24 Jan 22 MTL 01/24

DEATH BENEFITS – DIRECT EXPRESS PRE-PAID MASTERCARD DEBIT ACCOUNTS

RESOURCE TYPE

DESCRIPTION

DEATH BENEFITS

1. Personal Property

2. Conditional Exclusion

Death benefits, including gifts and inheritances, to

the extent they are not income because they are to

be spent on costs resulting from the last illness and

burial expenses of the deceased, are not

resources for the calendar month following the

month of receipt. If retained until the second

calendar month following receipt, they become a

resource.

Verification: (not all inclusive)

– Documents from source of payment

DIRECT EXPRESS PRE-PAID

MASTERCARD DEBIT

ACCOUNTS

1. Personal Property

2. Counted

The Direct Express MasterCard is issued to

recipients of Social Security benefits when they do

not have a regular bank account, or they choose to

use this type of account. Note: Customers are

charged a fee to receive a monthly statement.

If a customer receives Social Security benefits and

claims to not have a bank account, they will have

a Direct Express pre-paid MasterCard debit

account.

Verification: (not all inclusive)

– Copy of statement

– ATM transaction receipts

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

DEATH BENEFITS – ENTRANCE FEES

RESOURCE TYPE

DESCRIPTION

ENTRANCE FEES

1. Personal Property

2. Conditional

Fees paid to continuing care retirement

communities (CCRCs), or life care communities

(LCCs) where a range of living arrangements from

independent living through skilled nursing facility

care is provided.

These facilities require potential residents provide

information about their finances, resources and

income, before being accepted for admission.

The value is determined taking into account

spousal impoverishment rules, where appropriate.

Effective February 8, 2006, considered an

available resource if all three conditions are met:

– Individual can use them to pay for care when

other income and assets are insufficient; and

– Refundable upon death of the resident or

termination of residency in the facility; and

– Fees do not confer (give) any ownership

interest in the CCRC or LCC

Verification: (not all inclusive)

– Customer’s statement

– Copy of signed contract

– Receipt of funds paid

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RESOURCES

TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

22 Apr 01 MTL 02/22

FEDERAL TAX REFUNDS – HOME EQUITY

RESOURCE TYPE

DESCRIPTION

FEDERAL TAX REFUNDS

1. Personal Property

2. Conditional Exclusion

An unspent federal tax refund or payment is

excluded from resources for a period of 12 months

following the month of receipt of the payment.

Verification: (not all inclusive)

– Copy of check

– Copy of IRS filing form

HOME EQUITY

1. Personal Property

2. Conditional Exclusion

Individuals whose equity interest in their home

exceeds $636,000 are ineligible for long-term care

and HCBW services, unless:

– The individual’s spouse, dependent child

under age 21, or blind/disabled child resides

in the home; or

– Equity is reduced below $636,000 due to a

home equity loan or reverse mortgage.

Effective with applications filed on or after

January 1, 2006.

The value is the current market price of the home,

or the amount for which it can reasonably be

expected to sell on the open market.

An encumbrance is a legally binding debt against

the resource, like a mortgage, reverse mortgage,

home equity loan, or other debt secured by the

home. Refer to 240, G for potential transfer of

assets.

Verification: (not all inclusive)

– Written statement from county assessor’s

office

– Tax lists

– Copy of mortgage papers/escrow documents

– Copy of deed

– Real estate appraisal

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

HOUSEHOLD GOODS AND PERSONAL EFFECTS – INCOME PLACED IN

AN ACCOUNT IDENTIFIED AS EXCLUDED INCOME-INDIAN LAND

RESOURCE TYPE

DESCRIPTION

HOUSEHOLD GOODS AND

PERSONAL EFFECTS

1. Personal Property

2. Excluded

Household goods are items of personal property

customarily found in the home and used in

connection with the maintenance, use, and

occupancy of the premises as a home. They

include, but are not to: furniture, appliances,

televisions, carpets, cooking and eating utensils,

dishes, etc.

Personal effects are items of personal property that

are worn or carried by an individual or that have an

intimate relation to him or her. They include, but

are not limited to: clothing, jewelry, personal care

items, prosthetic devices, and educational or

recreational items such as books, musical

instruments, or hobby materials.

Prosthetic devices, wheelchairs, hospital beds,

dialysis machines and other items required by a

person's physical condition are excluded.

Verification: (not all inclusive)

– Customer’s statement

INCOME PLACED IN AN

ACCOUNT IDENTIFIED

AS EXCLUDED INCOME

1. Personal Property

2. Conditional Exclusion

Any excluded income placed in a financial institu-

tion when clearly identified as excluded income.

Verification: (not all inclusive)

– Source of income

– Copy of account statement

– Source of deposits

INDIAN LAND

1. Real Property

2. Conditional Exclusion

ALL INDIAN PROPERTY under authority of the

Bureau of Indian Affairs has a restricted title.

A. ASSIGNED LAND – An assignment allows

the use of tribal land by a member of the tribe.

Assigned land will not be considered a

resource.

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RESOURCES

TYPES OF RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

INDIAN LAND (Cont’d.)-INDIAN MONEY-

INDIVIDUAL DEVELOPMENT ACCCOUNT (IDA)

RESOURCE TYPE

DESCRIPTION

INDIAN LAND

(Cont'd)

B. ALLOTTED LAND – This type of land can be

sold by the individual upon approval by the

Bureau of Indian Affairs. Allotted land is not

a resource until the property is sold or

transferred.

C. UNRESTRICTED LAND – Land owned by

the individual and not controlled by the

Bureau of Indian Affairs. This land is an

available resource.

Verification: (not all inclusive)

– Tax rolls

– Copy of deed

– Bureau of Indian Affairs

– Customer’s statement

INDIAN MONEY

1. Personal Property

2. Conditional Exclusion

Per capita share payments granted to Western

Shoshone Indians pursuant to Public Law 108-

270 are an exempt resource.

INDIVIDUAL DEVELOPMENT

ACCOUNT (IDA)

1. Earned/Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

Intended to improve the economic independence

and stability of individuals and families and to

promote and support the transition to economic

self-sufficiency. An IDA participant can only

deposit earned income into an IDA. Federal funds

match the amount of earnings low-income working

individuals and families deposit into an IDA. IDA

savings are to be used for a first home purchase,

post-secondary educational expenses, or

business capitalization.

The Social Security Act provides for state family

assistance grant funds (i.e., TANF, WtW) to be

used to establish IDAs. The Assets for

Independence Act (AFIA) provides for IDAs to be

established under Head Start, Low Income Home

Energy Assistance (LIHEA), and Community

Services.

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

INDIVIDUAL DEVELOPMENT ACCOUNT (IDA) (Cont’d.)–LIFE ESTATES

RESOURCE TYPE

DESCRIPTION

INDIVIDUAL DEVELOPMENT

ACCOUNT (IDA)

(Cont'd)

Income in an IDA includes:

- Participant contribution (earned income);

- Interest earned on participant earned income

contributions;

- Matching funds; and

- Interest accrued on matching funds.

An individual whose participation in the IDA program has terminated, voluntarily or

otherwise, is no longer covered by the resource exclusion.

LIFE ESTATES

1. Personal Property

2. Conditional Exclusion

A life estate gives an individual for his/her lifetime

certain rights in property. These rights are the right

of possession, the right to use the property, the

right to obtain profits from the property (i.e.,

collection of rents) and the right to sell his or her

life estate interest. A contract establishing a life

estate may restrain one or more of these rights.

The owner(s) of a life estate do not have title to the

property and do not have the right to sell the

property.

The value of a customer’s life estate is determined

by:

1) the age of the customer,

2) the number of owners, and

3) the fair market value of the property.

The above information must be verified and then

sent to the Chief of E&P requesting a

determination of the life estate value.

Exception: A life estate in the principal place of

residence is an excluded resource and determining

its value is not necessary.

Evaluate for potential transfer of assets.

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RESOURCES

TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

14 May 01 MTL 14/02

LIFE ESTATES (Con't.d)-LIFE INSURANCE POLICIES

RESOURCE TYPE

DESCRIPTION

LIFE ESTATES

(Cont'd)

Verification: (not all inclusive)

– Signed and dated statement from a licensed

real estate broker

– Written statement from county assessor's office

– Tax lists

– Copy of mortgage papers

– Copy of deed

– Copy of life estate contract

LIFE INSURANCE

POLICIES

1. Personal Property

2. Conditional Exclusion

A life insurance policy is a contract. Its purchaser

(the owner) pays premiums to the company that

provides the insurance (the insurer). In return, the

insurer agrees to pay a specified sum to a

designated beneficiary upon the death of the

insured (the person on whom, or on whose life, the

policy exists).

Face Value (FV) is the amount of basic death

benefit contracted for at the time the policy is

purchased.

A policy's cash surrender value (CSV) is a form of

equity value that it acquires over time. The owner

of a policy can obtain its CSV only by turning the

policy in for cancellation before it matures or the

insured dies. A loan against a policy reduces its

CSV.

A life insurance policy is a resource if it has a CSV.

Its value as a resource is the amount of the CSV.

Life insurance which does not have a cash

surrender value (e.g., term life insurance) is

excluded from all computations.

Any life insurance policy with a CSV must be

evaluated for the FV. If the total FV of the policy or

combined FV of multiple policies the individual

owns total $1,500 or less, exclude them as a

resource. If the total FV of the policy or policies

exceeds $1,500, the total CSV for each policy is

counted.

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

14 May 01 MTL 14/02 TYPES OF RESOURCES (not all inclusive)

LIFE INSURANCE POLICIES (Cont’d.)

RESOURCE TYPE

DESCRIPTION

LIFE INSURANCE

POLICIES (Cont’d)

Accelerated life insurance payments are proceeds

paid to a policyholder PRIOR to death. Because

an individual receives proceeds from the policy

(not the policy's resource value, which is its cash

surrender value), the receipt of an accelerated

payment is not treated as a conversion of a

resource. Since accelerated payments can be

used to meet the individual's needs, the payments

are income in the month received and a resource if

retained into the following month.

Most accelerated payment plans fall into three

basic types, depending on the circumstances

which cause or "trigger" the payments to be

accelerated. These are the:

● Long–term care model, which allows policy-

holders to access their death benefits should

they require extended confinement in a care

facility or, in some instances, health care

services at home;

● Dread disease or catastrophic illness model,

which allows policy holders to access their

death benefits if they contract or acquire one

of a number of specified covered conditions;

and

● Terminal illness model, which allows policy

holders to access their death benefits

following a diagnosis of terminal illness where

death is likely to occur within a specified

number of months.

Some companies refer to these types of payments

as "living needs" or "accelerated death" payments.

Depending on the type of accelerated payment

plan, receipt of accelerated payments may reduce

the policy's FV by the amount of the payments and

may reduce CSV in a manner proportionate to the

reduction in FV. In some cases, a lien may be

attached to the policy in the amount of the

accelerated payments and a proportionate

reduction in CSV results.

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Division of Welfare and Supportive Services

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

24 Jan 22 MTL 01/24

LIFE INSURANCE POLICIES (Cont’d.)-LIQUIDATED RESOURCE-

MACHINERY AND EQUIPMENT

RESOURCE TYPE

DESCRIPTION

LIFE INSURANCE

POLICIES (Cont’d)

Verification: (not all inclusive)

– Insurance policy/rider

– Form 2015 from insurance company

– Written statement from insurance company

Note: If the CSV is excluded in determining

countable resources the FACE value of the life

insurance policy may reduce an applicant’s burial

exclusion. See Burial Funds.

LIQUIDATED RESOURCE

1. Real/Personal Property

2. Counted/Excluded

If a resource is liquidated, the money received is

not budgeted as income; it is still considered a

resource. Apply the countable/exclusion rules

governing the new form the liquidated resource has

taken, i.e., cash on hand, bank account, vehicle,

stocks, etc.

Verification: (not all inclusive)

– Sales receipt

– Proof of purchase documents

– Financial statements

MACHINERY AND

EQUIPMENT

1. Personal Property

2. Counted

Machinery and equipment not established as

property essential for self–employment/self–

support is counted at market value less

encumbrances.

Verification: (not all inclusive)

– Customer’s statement is accepted unless the

case manager has reason to question the

client's statement. Verification is required

ONLY when the case manager has reason to

question the client's statement.

– Written statement from county assessor's

office

– Written dealer's estimate

– Written estimate from agricultural agent

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

14 May 01 MTL 14/02 TYPES OF RESOURCES (not all inclusive)

MEDICAL SAVINGS ACCOUNTS (employee)–MINERAL RIGHTS

RESOURCE TYPE

DESCRIPTION

MEDICAL SAVINGS

ACCOUNTS

(employee)

1. Personal Property

2. Conditional Exclusion

An employer may elect to provide health care

benefits for an employee through a medical savings

account program.

The account is available and therefore countable to

the employee after the last business day of the year

in an amount equal to the amount contributed during

that year.

The account is also available and therefore

countable when the individual is no longer

employed by the employer.

Disbursements may be made during a given year by

the administrator of the account to pay medical

expenses of the employee or his/her dependent, or

to reimburse the employee for paid medical

expenses.

Verification: (not all inclusive)

- Written statement from the employer

MINERAL RIGHTS

1. Real/Personal Property

2. Counted

Mineral rights represent ownership interest in

natural resources such as coal, oil, or natural gas,

which are normally extracted from the ground.

If the individual owns the land to which the mineral

rights pertain, the market value of the land should

include the value of any mineral rights too. If the

individual does not own the land to which the

mineral rights pertain, obtain the market value from

a knowledgeable source.

Verification: (not all inclusive)

– The Bureau of Land Management

– U.S. Geological Survey

– Mining companies holding leases

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Division of Welfare and Supportive Services

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

14 May 01 MTL 14/02

MONEY FROM SALE OF EXCLUDED HOME-PATIENT TRUST ACCOUNTS

RESOURCE TYPE

DESCRIPTION

MONEY FROM SALE OF

EXCLUDED HOME

Money received from the sale of an excluded home

is disregarded if used to purchase another

excludable home within 3 months after the money

is received.

When the money is received in increments over a

period of time, amounts applied to principal are

considered a resource and amounts applied to

interest are unearned income.

Verification: (not all inclusive)

– Escrow documents

– Copy of check

– Bill of sale

PATIENT TRUST ACCOUNTS

To determine the countable resource amount,

consider the low balance of the account on any

given day of the calendar month.

Any income deposits in a calendar month are not a

resource.

If the facility rebuts the trust account balance due

to a delay in posting patient liability or other

expenses, they must provide a statement which

includes the following:

a. The total balance of the patient trust account;

and

b. What portion of the balance is not available

and why. The unavailable portion must be ite-

mized showing the amounts which are

encumbered and the source of the

encumbrance; and

c. It must be clear the encumbered portion would

not be released to the client if a request were

made by the client.

If a statement is provided with all of the above, the

portion the facility states is unavailable will not be

counted as a resource in determining eligibility.

RESOURCE TYPE

DESCRIPTION

PATIENT TRUST ACCOUNTS

(Cont'd)

Verification: (not all inclusive)

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

PATIENT TRUST ACCOUNTS-PENSION FUNDS

- Patient Trust Account Ledgers

- Medical Facility Information Form 2547-EE

PENSION FUNDS

1. Personal Property

2. Conditional Exclusion

Pension funds are funds held in individual

retirement accounts (IRA) (as described by the

IRS), or in work–related pension plans (including

Keogh plans). A vested retirement account is an

account to which an employee makes

contributions for a specified period of time, as

defined by the employer. The money contributed

by the employee is not matched by the employer

until the defined period of time ends.

Count money in an IRA or Keogh as a resource,

even if there is a penalty for early withdrawal.

Deduct the early withdrawal penalty and count the

remainder as a resource.

Do not count Keogh plans as a resource if there is

a contractual withdrawal agreement with other

people who are not household members, but

share the same fund. Consider this resource

inaccessible.

Count money in a vested retirement account as a

resource, unless early withdrawal is prohibited.

If a vested retirement account is attached and

distribution or availability of funds is blocked by a

court order due to divorce or child support,

consider this resource inaccessible.

Count money in a 401K plan as a resource.

Any retirement fund is not a resource if an

individual must terminate employment to obtain

any payment.

PENSION FUNDS

(Cont'd)

Pension funds of the customer’s ineligible

spouse are excluded, unless spousal

impoverishment rules apply.

Verification: (not all inclusive)

– Financial statements

– Tax return documents

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Division of Welfare and Supportive Services

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

24 Jan 22 MTL 01/24

PERSONAL CARE(Cont’d.)-PROMISSORY NOTES, FORMAL WRITTEN

LOAN AGREEMENTS AND PROPERTY AGREEMENTS

RESOURCE TYPE

DESCRIPTION

PERSONAL CARE AND HOME

CARE CONTRACT AGREEMENTS

1. Personal Property

2. Conditional Exclusion

When assistance and/or services are provided

to the applicant/recipient, regardless of whether

it is by a relative or non-relative, compensation

for past assistance and/or services will be

considered a transfer for less than fair market

value. If the transfer of assets is rebutted, the

fair market value of the assistance and/or

services may be determined by consulting with

area businesses that provide such services.

A contract that provides advance payment for

expenses, including but not limited to, repairs,

maintenance, property taxes, homeowner’s

insurance, heat and utilities for real

property/homestead, or for services like health

care monitoring, hospitalization, medical

treatment, visitation, entertainment, travel

and/or transportation, financial management or

shopping, etc., will be considered a transfer of

assets. All payments for care and services

which were made during the look-back period

are considered transfer of assets.

Contracts/agreements that involve the

provision of companionship are prohibited.

All contracts/agreements and payments related

to Personal Care and Home Care, whether

between an applicant/recipient and a relative or

a non-relative, must be evaluated for transfer of

assets.

Personal Care and Home Care

contracts/agreements are considered transfers

for less than fair market value unless the

agreement meets all of the following criteria:

• The services must be performed after a

written legal contract/agreement has

been executed between the

applicant/recipient and the provider. The

contract/agreement must be dated, and

the signatures must be notarized.

Payment for the services must not be

made until the services have been

provided (there can be no advance

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

PERSONAL CARE(Cont’d.)

payment for future expenses or

services); and

• At the time the services are received, the

applicant/recipient cannot be residing in

a nursing facility, adult foster care home

(licensed or unlicensed), institution for

mental diseases, inpatient hospital,

intermediate care facility for individuals

with intellectual disabilities or be eligible

for home and community-based waiver,

home health or home help; and

• At the time the services are received, the

services must have been recommended

in writing and signed by the

applicant/recipient’s physician as

necessary to prevent the transfer of the

applicant/recipient to a residential care

or nursing facility. Such services cannot

include the provision of companionship;

and

• The contract/agreement must be signed

by the applicant/recipient or legally

authorized representative, such as an

agent under a power of attorney,

guardian, or conservator. If the

agreement is signed by a

representative, that representative

cannot be the provider or beneficiary of

the contract/agreement.

Assets transferred to another person in

exchange for a contract/agreement related to

personal services/assistance and/or payment

for real property/homestead expenses after the

date of application are considered available and

countable assets until they are actually

disposed of.

Verification (not all inclusive).

- Financial Statements

- Bank Statements

- Copy of signed contract

- Itemized statements or bills

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Division of Welfare and Supportive Services

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

24 Jan 22 MTL 01/24

PERSONAL CARE(Cont’d.)-PROMISSORY NOTES, FORMAL WRITTEN

LOAN AGREEMENTS AND PROPERTY AGREEMENTS

Verification of fair market value of services

rendered.

PROMISSORY NOTES,

FORMAL WRITTEN LOAN

AGREEMENTS AND

PROPERTY AGREEMENTS

1. Personal Property

2. Conditional Exclusion

Generally, promissory notes, property

agreements and loan agreements may be sold

or discounted. If the customer’s statement of

value, either alone or combined with other

resources, exceeds the resource limit, there is

no need to verify current market value.

Presume the value is its outstanding principal

balance unless reliable evidence shows current

market value (CMV) is less.

Evaluate for potential transfer of assets.

If the individual alleges the item is for sale,

promissory notes, formal written loan

agreements and property agreements are

excluded when the customer verifies the item is

for sale at market value and no offers to

purchase have been received. The item must

remain for sale while the customer receives

assistance.

"Good Faith" efforts must be made by or on

behalf of the customer to qualify under this

exclusion. These efforts must continue for the

exclusion to remain in effect.

Federal regulations state "good faith efforts" to

sell resources consist of taking all necessary

and reasonable steps to sell it in the geographic

area covered by media (radio, television, and

newspaper, etc.) serving the area where the

property is located.

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Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

PROMISSORY NOTES, FORMAL WRITTEN LOAN AGREEMENTS AND

PROPERTY AGREEMENTS (Cont’d.)-RADIATION EXPOSURE PAYMENTS

RESOURCE TYPE

DESCRIPTION

PROMISSORY NOTES,

FORMAL WRITTEN LOAN

AGREEMENTS AND

PROPERTY AGREEMENTS

(Cont'd)

"Necessary and reasonable" steps to sell this

resource will be to utilize a licensed realtor to list

the resource for sale OR advertise the resource is

for sale through at least one media source covering

the area where the resource is located and posting

a 'for sale' sign on the property if applicable. The

frequency in advertising property for sale will be at

least twice a month.

Example: Newspaper advertisements should

appear twice in a month with each length of time

the decision of the customer/ representative.

A bona fide negotiable agreement is a resource.

The portion of any payment received representing

payment on the principal is also a resource. The

portion of any payment which represents interest

on the principal is unearned income.

An agreement which is not bona fide or negotiable

is not a resource. The total payments received,

whether principal and/or interest, are unearned

income.

Verification: (not all inclusive)

– Bank or other financial institution

– Title company

– Private investor

– Real estate broker

RADIATION EXPOSURE

PAYMENTS

1. Personal Property

2. Excluded

Payments made under the Radiation Exposure

Compensation Act.

Verification: (not all inclusive)

– Documents from source of payment

– Verify how the resources are held

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RESOURCES Medical Assistance Manual

TYPES OF RESOURCES (not all inclusive) 24 Jan 22 MTL 01/24

REAL PROPERTY

RESOURCE TYPE

DESCRIPTION

REAL PROPERTY

1. Real Property

2. Conditional Exclusion

Real property is land, including buildings or

immovable objects attached permanently to the

land.

OWNERSHIP/AVAILABILITY

a. Sole Ownership

Sole ownership of real or personal property mean

only one person may sell, transfer or otherwise

dispose of the property. All of the resource

evaluated at market value, less encumbrances, is

available to the customer.

b. Shared Ownership

Shared ownership of real or personal property

means two or more people own it simultaneously.

The following are common types of shared

ownership:

1) Tenancy-In-Common

Two or more persons each have an undivided

fractional interest in the whole property for the

duration of the tenancy. These interests are not

necessarily equal. One owner may sell, transfer or

otherwise dispose of his/her share of the property

Without permission of the other owner(s); but

cannot take these actions with the entire property.

If a tenant-in-common dies, the deceased’s interest

passes to his/her estate of heirs. Count the fair

market value, less encumbrances, of the

customer’s property share.

2) Joint Tenancy

Each of two or more persons have one and the

same undivided ownership interest and possession

of the whole property for the duration of the

tenancy. This means each owner owns ALL the

property. If a joint tenant dies, the survivor

becomes the sole owner. If more than one joint

tenant survives, the survivors become joint tenants

of the entire property interest. Count the total fair

market value, less encumbrances, of the entire

property.

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

REAL PROPERTY (Cont’d.)

RESOURCE TYPE

DESCRIPTION

REAL PROPERTY

(Cont'd)

3) Tenancy By The Entirety (Married Couples only)

This type of ownership can only exist between

married couples. The spouses as a unit own the

entire property and can be sold only with the

consent of both parties. However, if a legal divorce

occurs, the former spouses become tenants-in-

common and one can sell his/her share without the

consent of the other. If one spouse dies, the

survivor becomes the sole owner. Verify whether

the customer’s spouse will give permission to sell

the property. If permission cannot be obtained, DO

NOT count the customer’s one-half share of the

property.

Real property is land, including buildings or

immovable objects attached permanently to the

land.

Real property is excluded:

a. When the property is the customer’s principal

place of residence. A principal place of

residence is defined as a home (including a

mobile home or contiguous land) in which a

customer is residing or has resided in the

past. Land is contiguous to the home when

not separated by property owned by another

person. The home exclusion applies to all

buildings on the land.

A principal place of residence is/was a permanent

living arrangement of at least one full calendar

month prior to his/her absence.

When a customer has ownership interest in more

than one residence, determine which is primary by

obtaining evidence such as, but not limited to:

1. How much time is spent at each

residence;

2. Where he/she is registered to vote;

3. Which address he/she uses as a mailing

address or for tax purposes.

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RESOURCES

TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

REAL PROPERTY (Cont’d.)

RESOURCE TYPE

DESCRIPTION

REAL PROPERTY

(Cont'd)

Determine the primary residence accordingly and

document in the permanent section of the case file.

The exemption continues to apply when the

customer is absent from the home but:

1) Intends to return. If the customer or his

authorized representative states in writing the

customer intends to return to the home,

regardless of whether there is medical

evidence showing this is a probability, the

home will be exempt; OR representative

states in writing the customer intends to return

to the home, regardless of whether there is

medical evidence showing this is a probability,

the home will be exempt; OR

2) The home is occupied by a spouse or

dependent (e.g., financially, medically

dependent) relative; OR

3) The home ownership is transferred to a

revocable trust.

The transfer of a primary residence by an

institutionalized individual, including SSI recipients,

must be evaluated for potential transfer of resource

penalty.

b. For all non-business property up to $6,000 of

the customer’s equity if the property is

producing a net annual income of at least 6

percent of the excluded equity. The amount of

equity exceeding $6,000 is counted as a

resource. Income from this property is

counted; OR

c. When the customer verifies the property is for

sale at market value AND no offers to purchase

have been received (the property must remain

for sale while the customer receives

assistance), or the property has been sold and

escrow has not been completed.

"Good Faith" efforts must be made by or on

behalf of the client in order for property to

qualify under this exclusion. These efforts

must continue for the exclusion to remain in

effect.

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Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

REAL PROPERTY (Cont’d.)

RESOURCE TYPE

DESCRIPTION

REAL PROPERTY

(Cont'd)

Federal regulations state "good faith efforts" to

sell property consist of taking all necessary

and reasonable steps to sell it in the

geographic area covered by media (radio,

television, and newspaper, etc.) serving the

area where the property is located.

"Necessary and reasonable" steps to sell this

resource will be to utilize a licensed realtor to

list the property for sale OR advertise the

property is for sale through at least one media

source covering the area where the property is

located and posting a 'for sale' sign on the

property. The frequency in advertising

property for sale will be at least twice a month.

Example: Newspaper advertisements should

appear twice in a month with each length of

time the decision of the

customer/representative.

Verification: (not all inclusive)

– Signed and dated statement from a licensed

real estate broker

– Written statement from county assessor's

office

– Tax lists

– Copy of mortgage papers

– Copy of deed

– Letter from mobile home dealer

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Division of Welfare and Supportive Services

RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

15 Nov 01 MTL 03/15

REIMBURSABLE MEDICAL EXPENSES- REPLACEMENT/REPAIR

FUNDS

RESOURCE TYPE

DESCRIPTION

REIMBURSABLE MEDICAL

EXPENSES

1. Personal Property

2. Conditional Exclusion

Reimbursement for expenses already paid

for by the individual (pre-paid institutional

care) is not countable as income, but IS

countable as a resource following the month

of receipt. Other types of cash received for

medical expenses (reimbursed prescription

expenses) are not countable as income, and

are not countable as resources until the

second month following receipt.

Verification: (not all inclusive)

- Documents from the source of payment

RELOCATION ASSISTANCE

PAYMENTS

1. Personal Property

2. Conditional Exclusion

Unspent relocation assistance payments

from a state or local government are

excluded from resources for 9 months

beginning the month after the month in which

they received these funds.

For example, if an individual receives

relocation assistance in January, the

assistance can be excluded beginning

February through October.

Verification: (not all inclusive)

– Documents from Source of Payment

REPLACEMENT/REPAIR

FUNDS

1. Personal Property

2. Conditional Exclusion

When monies are received for replacement

or repair of destroyed, damaged, or stolen

excluded resources, the amount of money

received is disregarded from resources for 9

months.

REPLACEMENT/REPAIR

FUNDS

(Cont'd)

When monies are received for replacement

or repair of destroyed, damaged or stolen

resources, the amount of money received is

considered a change in type of resource and

remains a resource, not income.

Verification: (not all inclusive)

– Documents from source of payment

– Receipts and canceled check copies

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RESOURCES

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Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

REVERSE MORTGAGE- SELF-SUPPORT RESOURCES

RESOURCE TYPE

DESCRIPTION

REVERSE MORTGAGE

1. Personal Property

2. Counted

Payments received from a reverse mortgage are

exempt income in the month received. Any portion

of the payments retained the month following the

month of receipt is considered a countable

resource.

Evaluate for potential transfer of assets.

SAFE DEPOSIT BOXES

Safe deposit boxes may contain copies of deeds,

insurance policies, money and other countable

resources. The customer’s statement on the

application as to the contents may be taken unless

questionable. If the contents are questionable,

they must be verified.

Exception: If the contents are questionable or

unknown, and there is no way to verify the contents

because the customer is incapable of opening the

box and there is no other way to verify the contents,

the contents will be considered inaccessible.

Verification: (not all inclusive)

– The case manager viewing the contents

– A written statement verifying the contents

SELF-SUPPORT RESOURCES

1. Real/Personal Property

2. Conditional Exclusion

Resources necessary to fulfill a Plan for Achieving

Self–Support (PASS) for the blind and disabled as

long as the plan remains in effect. The plan must

be an individual plan, in writing, approved by the

Social Security Administration.

Verification: (not all inclusive)

– Written documents from the Social Security

Administration

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RESOURCES

TYPES OF RESOURCES (not all inclusive)

Medical Assistance Manual

24 Jan 22 MTL 01/24

SELF-EMPLOYMENT RESOURCES-STOCKS AND BONDS

RESOURCE TYPE

DESCRIPTION

SELF-EMPLOYMENT

RESOURCES

1. Real/Personal Property

2. Conditional Exclusion

Property essential for self–employment/self-

support. All property used in a trade or

business and all property used by an

employee in connection with employment,

regardless of the amount of equity an

individual has in the property or whether the

property is producing a reasonable rate of

return (e.g., real property, buildings,

inventory, equipment, tools, machinery,

vehicles, etc.). The property must be in

current use or returned to use (or in the case

of a deceased person, was expected to have

been returned to use) within one year.

Verification: (not all inclusive)

– Income Tax Records

– Business Records

– Customer’s statement

SSI/RSDI RETRO PAYMENTS

1. Personal Property

2. Conditional Exclusion

The unspent portion of SSI and RSDI

Retroactive payments received on or after

03/02/2004 are excluded from resources for

9 months following the month of receipt. The

unspent portion of SSI and RSDI Retroactive

payments received before 03/02/2004 are

excluded from resources for 6 calendar

months following the month of receipt. For

example, a retroactive RSDI payment

received in January 2018 is unearned

income for January when determining

financial eligibility and patient liability. The

RSDI retroactive payment is excluded from

resources effective February through

October.

These payments are no longer excluded

when converted to another resource such as

stocks, bonds, etc.

Verification: (not all inclusive)

– SSA Award Letter

– Verify how the resources are held

STOCKS AND BONDS

1. Personal Property

2. Conditional Exclusion

(Stocks Only)

Shares of stock represent ownership in a

business corporation. Their value shifts with

demand and may fluctuate widely. Exclude

shares of stock which cannot be sold.

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21 Apr 01 MTL 02/21 TYPES OF RESOURCES (not all inclusive)

STOCKS AND BONDS (Cont’d.)

RESOURCE TYPE

DESCRIPTION

STOCKS AND BONDS

(Cont'd)

U.S. Savings Bonds are obligations of the federal

government. Unlike other government bonds, they

are not transferable; they can only be sold back to

the federal government.

U.S. Saving Bonds cannot be redeemed for six

months after the issue date specified on the face of

the bond.

A municipal bond is the obligation of a state or a

locality (county, city, town, village or special

purpose authority such as a school district).

A corporate bond is the obligation of a private

corporation.

Verification: (not all inclusive)

– Newspaper reporting stock closing prices

– Local securities firm

– Written statement from firm's accountants

– Table of redemption values for U.S. Savings

Bonds

– Telephone call to local bank

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TYPES OF RESOURCES (not all inclusive)

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

TRUST FUNDS

RESOURCE TYPE

DESCRIPTION

TRUST FUNDS

1. Personal Property

2. E & P Chief Evaluation

Required

Most trusts are referred to the Chief of Eligibility

and Payments for an evaluation and decision on

availability. Obtain the complete trust document

with all attachments to send with the request. Use

form 6009 and ensure it is signed by both the case

worker and supervisor. Send via inter-office mail.

EXCEPTION: MAGI Medicaid groups do not

require a resource evaluation. If a customer is

applying for or receiving Medicaid in a MAGI

category and the customer has a trust, do not refer

the trust to the Chief of E&P for legal evaluation.

Refer to MAM E-300 (Trust Funds) for instructions

on counting trust income. Trusts should always be

referred to E&P when a MAGI Medicaid case is to

be converted to a MAABD program.

Trusts established prior to August 11, 1993 by an

individual or the individual's spouse, under which

the individual is the recipient of all or part of any

payments from the trust are called Medicaid

Qualifying Trusts (MQTs). MQT assets

(income/resources) are "deemed" available to the

customer.

When the evaluation determines that the principal

of the trust is not available to meet the needs of

the customer, it is an excludable resource.

Verification: (not all inclusive)

– Trust documents/agreements

– Memorandum from Chief of E&P

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14 May 01 MTL 14/02 TYPES OF RESOURCES (not all inclusive)

VEHICLES

RESOURCE TYPE

DESCRIPTION

UNIFORM GIFTS TO MINORS

1. Real/Personal Property

2. Conditional Exclusion

Uniform Gifts to Minors Act permits gifts to

minors which are free of tax burdens.

An individual (donor) makes an irrevocable gift of

money or other property to a minor (the donee).

The gift, plus any earnings it generates, is under

the control of a custodian until the donee

reaches the age of majority by state law (18

years for Nevada). The custodian has discretion

to provide to the minor or spend for the minor's

support, maintenance, benefit or education, as

much of the assets as he/she deems equitable.

The donee automatically receives control of the

assets upon reaching the age of majority.

The gift, including any additions or earnings, is

not income to the donee. The custodian's

disbursements to the donee are income to the

minor.

All property becomes available to the donee and

subject to income rules in the month the donee

reaches the age of majority. The month

following the month of majority, the property is

subject to resource evaluation.

Verification: (not all inclusive)

– Copy of the document of ownership, e.g.,

deed, CD, savings passbook, etc.

VEHICLES

1. Personal Property

2. Conditional Exclusion

Vehicles include passenger cars, trucks, boats,

snowmobiles, trailers, recreational vehicles, etc.

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RESOURCES

VEHICLES (Cont’d.)

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24

RESOURCE TYPE

DESCRIPTION

VEHICLES

(Cont'd)

The fair market value (FMV) less encumbrances of

all types of vehicles for which the total or partial

value has not been excluded. The FMV is

determined by the "average trade–in" value or the

current "wholesale blue book" value of the vehicle

excluding optional equipment and mileage.

If the vehicle is no longer listed in the blue book or

the vehicle is inoperable or extensively damaged,

the customer’s statement of value is acceptable.

ALWAYS obtain FMV of vehicles which are

collectible or antique.

For vehicles used to provide transportation such as

passenger cars, trucks, boats, snowmobiles,

animal drawn vehicles, etc., apply the following

exclusions in the following order.

This does not include recreational vehicles or

vehicles not used for transportation.

a. Exclude the TOTAL value of ONE vehicle for

the customer or member of the client's

household if:

1) It is necessary for employment;

2) It is necessary for transportation to or from

medical treatment of a specific or regular

medical problem;

3) The vehicle has been modified for

operation by or transportation of the

handicapped customer/household

member;

4) It is necessary because of climate, terrain,

or distance to provide transportation to

perform essential daily activities (such as

going to the grocery store, going to the

post office, etc.).

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RESOURCES

Division of Welfare and Supportive Services

Medical Assistance Manual

24 Jan 22 MTL 01/24 TYPES OF RESOURCES (not all inclusive)

VEHICLES (Cont’d.)-VICTIMS OF CRIME

RESOURCE TYPE

DESCRIPTION

VEHICLES (Cont’d)

b. When NO vehicle has been excluded under 1,

2, 3 or 4 above, the current market value

(CMV), NOT allowing any encumbrances, of

ONE vehicle up to $4,500 will be excluded.

When the market value exceeds $4,500, the

excess amount is divided equally among all

owners and the customer’s share is applied

toward the resource limit.

c. The market value of any OTHER vehicles less

encumbrances is divided equally among all

owners and the customer’s share is applied

toward the resource limit.

d. Exclude the TOTAL value of the customer’s

vehicle(s) essential for producing income

including vehicles used in a trade or business.

Verification: (not all inclusive)

– Customer’s statement regarding the number of

vehicles owned, ownership status and

availability is acceptable unless the case

manager has reason to question the

statement. Possible sources of verification

are:

– Kelley Blue Book

– Copy of bill of sale

– Copy of vehicle registration

– Written statement from county tax assessor

– Estimate from auto dealer

VICTIMS OF CRIME

1. Personal Property

2. Conditional Exclusion

Payments received from a fund established by a

state to aid victims of crime are excluded for a 9–

month period beginning the month after the

payments are received.

Verification: (not all inclusive)

– Documents from source of payment

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RESOURCES

HIWA-RESOURCE EXCLUSIONS

Division of Welfare and Supportive Services

Medical Assistance Manual

14 May 01 MTL 14/02

HIWA RESOURCE EXCLUSIONS:

Under the HIWA program the following resources are excluded:

● One vehicle

● Approved accounts of $15,000 or less

● Special needs trusts

● IRS recognized retirement accounts

● SSA death benefit payment

● Medical savings account

● Tax refunds

● Life insurance policies with cash surrender values of less than $50,000.

● Funeral/burial policies