SI DEN01220.300 State-By-State Tables Of Resource Limits And Exclusions

See SI 01220.300

A. Special Resource Provision

The special resource provision for former recipients of assistance under a State Plan is described in SI 01220.001. When specific conditions are met, the resource limits and exclusions under the State plan in effect in October 1972 must be used to determine eligibility for SSI benefits (SI 01220.300). If the State Plan is used, all of the resource provisions in the Plan apply. Do not use a combination of State and Federal resource provisions.

B. State-by-State Tables

The following tables should be used to apply the resource provisions of the October 1972 State Plans in Region VIII. Refer questions regarding the application of the State Plan provisions to the SSI regional office.

1. COLORADO

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.

2. MONTANA

Dollar Maximum: Personal property of $500 is excluded. Personal property is defined as cash, stocks, bonds, postal savings, bank savings, checking accounts, U.S. Savings Bonds or stamps and other negotiable instrument and livestock.

Home: $5000 assessed value, or clear equity of $15,000, includes trailer camper, etc. used as a place of regular lodging; if not used as place of regular lodging it is an available resource.

Other Real Property: Person not eligible if assessed value of $1,000 or has clear equity of $1,000.

Household Goods: Excluded.

Personal Effects: $500 for each applicant or recipient. See "Dollar Maximum."

Automobile: $1,500 limit Blue Book wholesale value. If value exceeds $1,500 determination must be made to see if it can be sold. If over $1,500 and fully paid for, may be eligible if used for employment, or if person lives a considerable distance from town or a business center.

Life Insurance: Each individual - $5,000 face value life insurance and burial policies. May have $1,000 set aside in a burial fund or burial insurance without becoming a resource — interest can accumulate and no count.

Property Necessary for Self-Support: Not excluded.

3. NORTH DAKOTA

Dollar Maximum: $1,350 for one recipient, $1,700 for two recipients made up of a cash reserve of $350 for each recipient and a total of $1,000 noncash other personal property. NOTE: $1,000 maximum is net equity. When computing net equity, the value of the resource must be reduced by any encumbrances including whatever claims the State may have as a result of a transfer in trust (lien) prior to January 1, 1974.

Home: Exclusion applies to "Homestead," which is defined as that portion of the real property of the head of the family, occupied or selected by him/her as a home. Within a town plat it shall not exceed two acres of land and not exceed $40,000 in value over and above liens and encumbrances; outside town plat it shall not exceed 160 acres together with the dwelling house situated thereon with all appurtenances and all other improvements on the land regardless of the value. Home exclusion continues to apply for an absent beneficiary so long as he/she expresses an intent to eventually return home.

Other Real Property: Other real property may be excluded if it has been transferred in trust as security for State assistance received. (Such transfer resulted from the State's lien law.)

Household Goods: Excluded.

Personal Effects: Excluded.

Automobile: The equity value (current market value less liens and encumbrances) of an automobile is included as "personal property," subject to the $1,000 noncash limit (see Dollar Maximum above).

Life Insurance: There is no specified limitation on the amount of life insurance. However, any life insurance policy having a cash surrender value of $300 or more must have been assigned to the State prior to January 1, 1974.

Property Necessary for Self-Support: Real property other than a homestead may be owned by an applicant or his spouse if the property represents a significant source of income and the value does not exceed $8,000 in equity. If the value exceeds $8,000 in equity, it must be excluded if it has been transferred in trust to the State prior to January 1, 1974.

4. SOUTH DAKOTA

Dollar Maximum: $1,000 equity for individual and $2,000 equity for a married couple living together. Equity is the fair market value of the property less the amount of encumbrances, such as liens or chattel mortgages. (Spouses shall be considered living together even though one may be residing in a nursing home or institution for reasons of health.)

Home: The home in which an applicant, recipient or spouse is living is excluded for eligibility purposes. The home is considered as "other saleable real property" whenever the recipient has been absent continuously for a period of one year, regardless of whether or not it has been legally abandoned. Exception: Homestead property that produces rental income is excluded if the income is received with reasonable regularity and bears a reasonable relationship to the value of the property as compared with similar rental property in the community.

Other Real Property: Precludes eligibility. Exception: Real Property held in trust is excluded; that is, real property to which the Federal government has the legal title which is being held for the benefit of certain citizens (e.g., Indian lands).

Household Goods: Excluded.

Personal Effects: Excluded.

Automobile: Excluded if at least three years old. Otherwise, precludes eligibility.

Life Insurance: Policy owned by the applicant or spouse is considered if in effect at least five years and has a face value of at least $5,000. Up to $1,000 of cash surrender value is excluded.

Property Necessary for Self-Support: Excluded if it produces regular and reasonable amount of income (see "Home").

5. UTAH

Dollar Maximum: Individual - $600 equity. Couple (or family) - $1,200 equity. Equity means current market value, minus encumbrances, minus liens (if any). If a real property lien was required, the property was excluded. (See "Home" and "Other Real Property.")

Home: There was no dollar limit on the value of a house and lot owned and occupied by the recipient. OAA recipients had a lien placed on their home in order to be eligible. AB and AD recipients had no lien placed on a home owned and occupied that stands on a lot which is the "average size" for lots in the community. The amount of property which exceeded the average size was excess real property and subject to a lien. The excess real property value was determined by using the fair market value minus any encumbrances (i.e., the equity value). The State stills maintains liens applied to converted individuals. Whenever real property with a lien is sold, the State will recoup al funds paid under their prior welfare programs. If an aged individual left a home which was under a lien but remained in Utah, he could have remained eligible under the former plan. The value of the home was then considered excess real property by using the following formula: fair market value minus encumbrances, minus the lien. Contact the local Department of Social Services for a case-by-case determination. The home was excluded during periods of temporary absences from the home. Temporary absence was defined as circumstances in which a person maintained his home in Utah, but was away form the State and made subsequent returns, or intended to return when the purpose of the absence were accomplished. Examples: visits to relatives or friends, travel, forced removal, imprisonment, military service, temporary child care, or missionary service.

Other Real Property: For AB and AD recipients, the equity value of all real property other then the home was included in the dollar maximums. For OAA recipients, a lien was required on all real property; such property was then excluded.

Personal Property: The net value of all personal property is included in the dollar maximums of $600 for an individual and $1,200 for a couple or family, excluding one automobile, and household furniture and fixtures.

Household Goods: Clothing, furniture, and household equipment are excluded in determining the value of personal property.

Personal Effects: Excluded.

Automobile: One excluded.

Life Insurance: Policies not exceeding $1,500 face value excluded. If face value exceeds $1,500, total cash value shall not exceed $500 for an individual; $1,000 for a couple or family. If over 65 years - burial trust fund limited to $750 for an individual and $1,500 for a couple (or family).

Property Necessary for Self-Support: None.

Other: Waters right attached to a lot and house occupied by a blind or disabled recipient excluded.

6. WYOMING

Dollar Maximum: For each recipient the fair market value on all nonexempt resources shall not exceed $500. $500 is also exempt for ineligible spouse.

Home: House and lot or connecting lots excluded if assessed valuation does not exceed $3,500. The property was considered occupied as a home by the client during periods when the individual was away for short visits or lived elsewhere temporarily for health reasons. Additionally, where an individual was in a sheltered care facility (nursing home or hospital), even if he had little expectation of returning to his home, the vacant home was not considered against the State Plan resource limits to the extent the assessed eva