Dollar Maximum: Recipient - $1,000 equity; eligible couple - $1,000 equity each; nonrecipient spouse
- $2,000 equity. Equity is defined as the gross value of the property minus the total
of all indebtedness or encumbrances, such as delinquent taxes, judgments, chattel
mortgages, liens, etc. The gross value of all property which is or can be assessed
by the County assessor is the assessed value (not the market value derived from the
assessed value). The gross value of nonassessable property is its market value — the
amount which an individual would receive if he sold the property.
Home: Excluded. The definition of a home includes all land contiguous to the home, as
well as rental or business use of the property as long as the primary purpose of the
property is for a home. If the recipient is temporarily absent from the home, visiting
on a trip, the exclusion applies for no longer than 12 months. If the recipient is
forced to leave for other than health reasons (for example, because of fire or flood),
the exclusion applies for up to 12 months with an extension of up to 12 additional
months, if necessary (24 months maximum). Aged - if the recipient involuntarily absent
for health care, exclusion applies as long as care is required.
Blind or Disabled - if the recipient is involuntarily absent for health care, exclusion applies for no
longer that 12 months unless spouse continues to live in the home, then the exclusion
continues as long as the spouse remains in the home.
Other Real Property: Equity included in dollar maximum.
Household Goods: Excluded.
Personal Effects: Excluded.
Automobile: Equity included in dollar maximum. Equity value is a percentage of FOB cost (price
at a specified shipping point) minus encumbrances. Percentage of FOB is 70 percent
for the first model year, 50 percent for the second, 40 percent for the third, 30
percent for the fourth, 15 percent for fifth, 7.5 percent for the sixth, 3.75 percent
for seventh or $50, if larger, and $50 for all older models. (The FOB cost may be
secured from the ownership card in the recipient's possession or from the Branham
Automobile Reference Book, issued annually. Current copies of this reference may be
found in the county clerk's office.)
Life Insurance: Cash surrender value included in dollar maximum.
Property Necessary for Self-Support: Only the following are excluded — Tools for a trade or business up to $200; library
and/or implements for a profession up to $300; working animals to the value of $200;
one cow, one calf, ten sheep, and feed for six months; one wagon, plow, harrow, and
other implements up to $50.
Transfers of Property: Transfers of property made "without fair consideration" within the five years prior
to filing (or within five years of the current date) are includable resources to the
extent that the equity value of the property exceeds the amount received as proceeds
of the sale. Transfers of property by an ineligible spouse without fair consideration
do not effect the recipient's eligibility.
Burial Contracts and Burial Lots: Prepaid irrevocable burial contracts of $500 or less are excluded for aged recipients
only. In all other cases, the paid-up value of the a prepaid burial contract is an
includable resource. Burial space owned by a recipient for his burial is excluded.