Department of Human Services

Food Stamp Online  Policy Manual

Exempt Resources

Revised: 

15.8

INACCESSIBLE RESOURCES

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1240-1-4-.05(8)

The cash values of resources which are not accessible to the household or which cannot be brought to a condition of current availability are exempt.

 

For example:

 

·        security deposits on rental property or utilities;

 

·        property in probate;

 

·        jointly owned resources determined to be inaccessible;

 

·        real property which the household is making a good faith effort to sell at a reasonable price, but which has not been sold. (Verification of the effort to sell the property may be obtained through a collateral contact or documentation, such as a public advertisement that the property is for sale. It must be determined that the household has not declined a reasonable offer.)

 

·        a resource which is unlikely to produce any significant amount of funds for the support of the AG if sold or disposed of in any other manner is considered inaccessible. A resource that the AG is unable to sell for any significant return because the AG’s interest is relatively slight or because the costs of selling the AG’s interest would be relatively great is also considered inaccessible.

 

Note:  Significant amount of funds is an amount equal to one-half or more of the applicable resource limit. Significant return is any return, after estimated costs of sale or disposition, and taking into account the ownership interest of the AG, that is estimated to be one-half or more of the AG’s resource limit.

 

Exceptions:         

           

o   Financial instruments such as stocks, bonds and negotiable financial instruments.

 

Resources that are inaccessible, such as those listed below, are excluded.

 

(a)   Irrevocable Trust Funds

 

Any funds in a trust or transferred to a trust, and the income produced by that trust to the extent it is not available to the household will be considered inaccessible if:

 

1.   the trust arrangement is not likely to cease during the certification period, and no household member has the power to revoke the trust arrangement or change the name of the beneficiary during the certification period: and

 

2.   trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction, or influence of a household member; and

 

3.   the funds held in irrevocable trusts are either:

 

(i)     established from the household’s own funds if the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational or medical expenses of any person named by the household creating the trust: or

 

(ii)       established from non-household funds by a non-household member; and

 

4.   the trustee administering funds is either:

 

(i)     a court, or an institution, corporation, or organization which is not under the direction or ownership of any household member; or

 

(ii)   an individual appointed by the court who has court imposed limitations placed on his/her use of the funds which meet the requirements of the provision above.

 

(b)   Non-Liquid Assets Used as Collateral for Business Loans

 

When the household places a lien against a non-liquid asset to obtain a business loan, consider the asset as inaccessible if the lien agreement specifically prohibits the household from selling it.

 

(c)    Money in “Cafeteria Plans”

 

Money set aside in a ‘Cafeteria Plan” is excluded as a resource. Money is set aside by the employer from the household member’s gross paycheck as authorized by the member. This set aside money is used to pay certain expenses such as medical costs or child care costs and is paid as a vendor payment by the employer. The household will lose the money at the end of the year if any is left over. The household is unable to withdraw this money that has been set aside and, therefore, the money is inaccessible.

 

Glossary of Terms

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