https://secure.in.gov/fssa/files/Medicaid_PM_2600.pdf

1 Indiana Health Coverage Program Policy Manual Chapter: 2600 Resources Section Table of Contents RESOURCES PRINCIPLES OF RESOURCES Definition of Resources Ownership of Resources Joint Ownership of Resources Joint Ownership of Vehicles Availability of Resources Resource Eligibility Date Determining Resource Value Vehicle Valuations Real Property Value Life Estate/Remainder Value Life Estate/Remainder Tables Mineral Rights Value Conversion of Resources Verification of Resources Monitoring of Resources Theft of Funds

2 RESOURCE LIMITS TYPES AND VALUE OF PERSONAL PROPERTY RESOURCES Cash Pre-Paid Debit Cards Bank and Other Accounts Savings And Checking Accounts Business Accounts (MED 1, 4) Dedicated Accounts for Individuals Under 18 (MED 1, 4) Time Deposits Safety Deposit Box College Savings Accounts ABLE ACCOUNTS Retirement Accounts Burial Related Resources Burial Accounts (MED 1, 4) Funeral Planning Programs (MED 1, 4) Prepaid Funeral Agreements (MED 2) Funeral Trusts Death Benefits (MED 1, 4) Burial Plots (MED 2) Burial Plots or Spaces (MED 1, 4) Insurance Life Insurance Life Insurance Value Life Insurance Exemption (MED 1) Life Insurance Exemption (MED 4) Indemnity Health Insurance, VA Aid and Attendance Payments, and Casualty Insurance Long Term Care Program-Resource Disregard (MED 1, 4) Household Goods and Personal Effects Income-Producing Personal Property Income-Producing Personal Property (MED 2) Income-Producing Personal Property (MED 1, 4)

3 Personal Property Used to Produce Food Stocks, Bonds, and Mutual Fund Shares Mortgages, Loans, and Promissory Notes Land Sales Contract Land Sales Contract (MED 2) Land Sales Contract (MED 1, 4) Vehicles Definition Of Vehicle Treatment of Vehicles (MED 2) Treatment of Vehicles Prior to June 1, 2014 (MED 1, 4) Treatment of Vehicles On and After June 1, 2014 (MED 1, 4) Recreational Vehicles And Equipment Non-Recurring Lump Sump Payments Life Care Contract (MED 1, 4) Trust Funds Trust Funds Established Prior to August 11, 1993 Trust Funds Established On and After August 11, 1993 Certain Trusts Receiving Special Consideration Other Trusts Not Governed by OBRA-93 Legal guardianship/Representative Payee (MED) Prorated Income Presumption of Liquidity (MED 1) TYPES AND VALUE OF REAL PROPERTY RESOURCES Real Property Ownership Verification of Real Property Ownership Exempt Real Property Resources The Home (MED 1, 4) Home Replacement (MED 1, 4)

4 Income-Producing Real Property (MED 1, 4) Food-Producing Real Property (MED 1, 4) Real Property Owned By A Community Spouse (MED 1) Treatment of Non-Exempt Real Property Offering Real Property For Sale Or Rent (MED 1) Offering Real Property For Sale Or Rent (MED 4) PLAN FOR ACHIEVING SELF-SUPPORT Plan For Achieving Self-Suport (MED 1, 4) INDEPENDENCE AND SELF-SUFFICIENCY ACCOUNTS (MED 1) HEALTH SAVINGS ACCOUNTS RESOURCES EXEMPTED UNDER FEDERAL LAW Benefits Under Federal Nutrition Program WIC Benefits Older Americans Act Child Nutrition Act National School Lunch Act Food Stamps/Commodities Hud Assistance Relocation Assistance Act Payments Home Energy Assistance Payments Assistance For Certain Indian Tribes/Alaskan Natives Compensation To Japanese/Aleuts (MED 1, 4) German Reparation Payments (MED 1, 4) Crime Victim Payments (MED 1, 4)

5 Domestic Volunteer Service Act Compensation Payments to Students Disaster Assistance Payments Radiation Exposure Act Benefits Agent Orange Settlement Act Payments Federal Tax Refund Payments I ndividual Development Account RESOURCE ELIGIBILITY DETERMINATION Resource Eligibility Determination (MED 1) QMB, QDW, SLMB, and QI Resource Determinations (MED 4) Resources/Institutionalized/Community Spouse (MED 1) Resource Assessment And Spousal Share (MED 1) Resource Eligibility/Institutionalized Spouse (MED 1) Post Eligibility Protected Period (MED 1) Reserved Reserved Reserved Reserved Reserved TRANSFERS OF PROPERTY Transfer of Property Law General Applicability of Transfer of Property Law Determining The Transfer Review Period Allowable Transfers of Property Transfers Of Homes And Income-Producing Real Property (MED)

6 Home Equity Restriction De Minimis Transfer of Property Allowance Transfers Of Personal Effects And Household Goods Determining Adequacy Of Consideration Compensation In Cash Compensation In Real or Personal Property Compensation By Support/Maintenance Compensation By Services Determining Uncompensated Value Transfers Involving Life Estates Transfers Involving Annuities Establishing Joint Ownership (MED) Transfers Of Income Loans, Promissory Notes As Transfers of Assets Treatment of Continuing Care Retirement Community Entrance Fees Transfers Involving Burial Plots or Spaces for Immediate Family Members Presumption of Intent In Transferring Property Determining the Transfer Penalty Period Begin Date Calculation of the Penalty Period Multiple Transfers of Property Transferred Property is Returned to the Original Owner Budgeting Procedures During A Transfer Penalty Period Transfer Penalty Hardship Exception Footnotes for Chapter 2600 RESOURCES This chapter presents requirements for determining eligibility based on resources.

7 The chapter contains the following main sections: Principles of Resources (Section 2605) Resource Limits (Section 2610) Types and Value of Personal Property Resources (Section 2615) Types and Value of Real Property Resources (Section 2620) Plan For Achieving Self-Support (Section 2625) Resources Exempted Under Federal Law (Section 2630) Resource Eligibility Determination (Section 2635), and Transfer of Property (Section 2640) PRINCIPLES OF RESOURCES This entire chapter is inapplicable to MED 3 and TMA (MA F). The resources owned by specific individuals must be identified and evaluated according to the requirements of each program. A distinction between resources and income must always be made so that proper consideration is given to each. Section 2605 outlines principles which apply to the consideration of resources in the determination of eligibility for assistance.

8 All property not specifically exempted in the following sections is countable as a resource. When there is an agreement to offer to dispose of real property, the agreement should be considered to be effective for the purposes of the application (see ). DEFINITION OF RESOURCES Resources are real or personal property that is owned solely or jointly by an individual. Real property is land, including buildings or immovable objects attached permanently to the land. Real property also includes life estates, remainder interests, and mineral (Refer to Sections and 2620) Personal property includes all property that is not real property. The eligibility resource screens identify the following types of personal property as liquid resources: Indiana Health Coverage Program Policy Manual Chapter: 2600 Resources Section Table of Contents - Cash on hand - Checking accounts - Savings accounts, including Christmas Club - Savings certificates - Trust funds - Individual retirement accounts - Keogh plans - Credit union accounts - Burial accounts - Prepaid funeral agreements - Stocks - Bonds - Nursing home accounts OWNERSHIP OF RESOURCES The owner of a resource is any individual who has the ability to liquidate or dispose of the resource.

9 A resource can be solely or jointly owned. JOINT OWNERSHIP OF RESOURCES Joint ownership of resources, consisting of real or personal property, exists when the right to liquidate or dispose of the property is shared by more than one individual. Joint ownership is indicated by entering "Y" on the resource data collection screens. The full amount is entered for each individual in the case who owns part of the resource. Then the joint ownership screen comes up for each joint owner. If the resource is jointly owned by a married couple, one-half of the resource is to be entered for each spouse on the jointly owned resources screen. Otherwise, the entry on the screen depends on the type of resource, as explained below. When any type of account held in a financial institution is jointly owned, the worker is to presume that all of the funds belong to each owner.

10 The individuals are to be advised of this presumption and given the opportunity to rebut it. If an applicant/recipient rebuts, they are responsible for providing proof of ownership of the funds, which includes a record of deposits and withdrawals from the account. Following a successful rebuttal, the funds must be separated and placed in separate accounts. Only the funds actually belonging to the applicant/recipient will then be counted as a resource to them and entered on the Liquid Resources This procedure applies whether or not the joint owners are all applying for or receiving assistance. If the funds are not separated, the balance is counted in its entirety by each joint owner. In addition to bank accounts, other real and personal property may be jointly owned.