SI SF01220.300 Arizona Grandfathered Resource Provisions
See SI 01220.300
A. Dollar maximum
A single recipient may have equity in other property and/or liquid assets up to $800. A recipient and spouse (who may be ineligible) may have equity in other property and/or liquid assets up to $1200.
For Aid to the Totally Disabled (ATD) ONLY: Not more than $400 for a single recipient or $600 for a recipient and spouse (who may be ineligible) of this exclusion may be in cash, bonds, savings or negotiable securities.
Equity in non-excludable property plus the value of stock, bonds, savings and other negotiable securities or instruments may not exceed $800.
Equity in non-excludable property plus the value of stock, bonds, savings and other negotiable securities or instruments may not exceed $1200.
Equity in non-excludable property plus the value of stock, bonds, savings and other negotiable securities or instruments may not exceed $800, but the value of the stocks, bonds, savings or other negotiable instruments may not exceed $400.
Equity in non-excludable property plus the value of stock, bonds, savings and other negotiable securities or instruments may not exceed $1200, but the value of the stocks, bonds, savings or other negotiable instruments may not exceed $600.
If one spouse is aged or blind and the other spouse is disabled, the $1200 limitation applies, but the spouse who is disabled cannot have more than $400 in negotiable instruments or cash.
The Arizona State Plan allows $8000 equity (not market value) in the home and property contiguous to the home. The home resource provision includes the value of the equity in a trailer used as a home. There may be buildings other than the home on the land contiguous to the home and any such buildings are counted as part of the value of the home.
C. Household goods
Household furnishings used by the recipient and his or her family in their usual place of residence are excluded.
D. Personal effects
The value of the equity of an automobile owned by the recipient is a countable resource and is applied toward the recipient’s dollar maximum. There is no provision in the State Plan for excluding an automobile for medical, self-help, business or specially equipped reasons. A motor vehicle not currently licensed or totally inoperable is considered valueless under the State Plan.
F. Life insurance
The cash surrender value of a policy is countable only to the extent to which it is available to the recipient. If there is a current loan outstanding against the cash surrender value, only the net cash surrender value available to the recipient is countable under the dollar maximum.
To consider the cash surrender value countable under the dollar maximum, the policy must be in the possession of the recipient. If the recipient, as the insured individual, has paid or is paying premiums on an insurance policy that is in his or her possession, the cash surrender value is countable.
The cash surrender value of policies in which the recipient is named as the insured will not be considered a resource to him or her if the policies are in the possession of the beneficiary of the policy or person other than a spouse, and the premium is being paid by the beneficiary of the policy or other person other than the spouse.
G. Property necessary for self-support
Tools that have been or are being used the recipient in pursuit of his or her trade may not exceed $250 in value. When the value of such tools exceeds the $250 limitation, the excess may not be included in the recipient’s dollar maximum and the recipient will be ineligible under the Arizona State Plan. The value of other tools not used in the pursuit of trade or business may be included in the dollar maximum.
Livestock and poultry owned by the recipient must be considered in determining whether the dollar maximum is exceeded, whether or not the livestock and poultry are used for home produce. The value for the livestock and poultry is the equity, which is established by subtracting the indebtedness from the current market value. Once the equity is established, subtract $100 for each household member in an aged or blind recipient’s household. Any balance remaining must be included in the dollar maximum.
NOTE: The exclusion of $100 of the equity for each household member does not apply to the disabled, whose total equity in livestock and poultry is includable under the dollar maximum.
H. Real property other than the home
There are no applicable exclusions of this resource in the Arizona State Plan. The value of the equity in the property must be applied to the applicable dollar maximum.
I. Prepaid burials and/or burial plots
Prepaid burials and burial plots must be considered in determining the value of the recipient’s resources. The value of the prepaid burial is the amount that the recipient can receive in a refund. If the contract is irrevocable and no refund is possible, the prepaid burial is considered to have no value.