Resources - Cash and Family Medical

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Revised April 29, 2013

WAC 182-509-0225	Excluded resources for family medical programs
WAC 388-470-0045	How do my resources count toward the resource limits for cash assistance and family medical programs ?
WAC 388-470-0055	How do my resources count toward the resource limit for basic food?

WAC 388-470-0045

Effective March 1, 2011

WAC 388-470-0045 How do my resources count toward the resource limits for cash assistance and family medical programs ?

1. We count the following resources toward your assistance unit's resource limits for cash assistance and family medical programs to decide if you are eligible for benefits under WAC 388-470-0005:

a. Liquid resources not specifically excluded in subsection (2) below. These are resources that are easily changed into cash. Some examples of liquid resources are:

i. Cash on hand;

ii. Money in checking or savings accounts;

iii. Money market accounts or certificates of deposit (CDs) less any withdrawal penalty;

iv. Available retirement funds or pension benefits, less any withdrawal penalty;

v. Stocks, bonds, annuities, or mutual funds less any early withdrawal penalty;

vi. Available trusts or trust accounts; or

vii. Lump sum payments as described in chapter 388-455 WAC.

viii. Any funds retained beyond the month of receipt from conversion of federally protected rights or extraction of exempt resources by members of a federally-recognized tribe that are in the form of countable resources.

b. The cash surrender value (CSV) of whole life insurance policies.

c. The CSV over fifteen hundred dollars of revocable burial insurance policies or funeral agreements.

d. The amount of a child's irrevocable educational trust fund that is over four thousand dollars per child.

e. Funds withdrawn from an individual development account (IDA) if they were removed for a purpose other than those specified in RCW 74.08A.220.

f. Any real property like a home, land or buildings not specifically excluded in subsection (3) below.

g. The equity value of vehicles as described in WAC 388-470-0070.

h. Personal property that is not:

i. A household good;

ii. Needed for self-employment; or

iii. Of "great sentimental value," due to personal attachment or hobby interest.

i. Resources of a sponsor as described in WAC 388-470-0060.

j. For cash assistance only, sales contracts.

2. The following types of liquid resources do not count when we determine your eligibility:

a. Bona fide loans, including student loans;

b. Basic food benefits;

c. Income tax refunds for twelve months from the date of receipt;

d. Earned income tax credit (EITC) in the month received and for up to twelve months;

e. Advance earned income tax credit payments;

f. Federal economic stimulus payments that are excluded for federal and federally-assisted state programs;

g. Individual development accounts (IDAs) established under RCW 74.08A.220;

h. Retroactive cash benefits or TANF/SFA benefits resulting from a court order modifying a decision of the department;

i. Underpayments received under chapter 388-410 WAC;

j. Educational benefits that are excluded as income under WAC 388-450-0035;

k. The income and resources of an SSI recipient;

l. A bank account jointly owned with an SSI recipient if SSA already counted the money for SSI purposes;

m. Foster care payments provided under Title IV-E and/or state foster care maintenance payments;

n. Adoption support payments;

o. Self-employment accounts receivable that the client has billed to the customer but has been unable to collect; and

p. Resources specifically excluded by federal law.

q. For medical benefits only:

i. Receipts from exercising federally protected rights or extracted exempt resources (fishing, shell-fishing, timber sales, etc.) during the month of receipt for a member of a federally-recognized tribe.

ii. The income and resources of an SSI recipient.

3. The following types of real property do not count when we determine your eligibility:

a. Your home and the surrounding property that you, your spouse, or your dependents live in;

b. A house you do not live in, if you plan on returning to the home and you are out of the home because of:

i. Employment;

ii. Training for future employment;

iii. Illness; or

iv. Natural disaster or casualty.

c. Property that:

i. You are making a good faith effort to sell;

ii. You intend to build a home on, if you do not already own a home;

iii. Produces income consistent with its fair market value, even if used only on a seasonal basis; or

iv. A household member needs for employment or self-employment. Property excluded under this section and used by a self-employed farmer or fisher retains its exclusion for one year after the household member stops farming or fishing.

d. Indian lands held jointly with the Tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs.

4. If you deposit excluded liquid resources into a bank account with countable liquid resources, we do not count the excluded liquid resources for six months from the date of deposit.

5. If you sell your home, you have ninety days to reinvest the proceeds from the sale of a home into an exempt resource.

a. If you do not reinvest within ninety days, we will determine whether there is good cause to allow more time. Some examples of good cause are:

i. Closing on your new home is taking longer than anticipated;

ii. You are unable to find a new home that you can afford;

iii. Someone in your household is receiving emergent medical care; or

iv. Your children are in school and moving would require them to change schools.

b. If you have good cause, we will give you more time based on your circumstances.

c. If you do not have good cause, we count the money you got from the sale as a resource.

This is a reprint of the official rule as published by the Office of the Code Reviser. If there are previous versions of this rule, they can be found using the Legislative Search page.

CLARIFYING INFORMATION

Some examples of resources that are excluded for cash assistance and family medical programs are:
1. Personal effects;
2. Benefits from the Basic Food Program;
3. LIHEAP payments;
4. One burial plot for each AU member; and
5. The income and resources of an SSI recipient.
Some examples of lump sums for cash assistance are:
1. Cash prizes;
2. Awards;
3. Lottery winnings;
4. Refunds of cleaning, damage, security, or utility deposits; and
5. Insurance or damage settlements, some or all of which may be excluded. See LUMP SUM PAYMENTS for more information.
Sentimental Value Exemption

The exemption of a resource due to “great sentimental value” is limited to personal property. Vehicles are counted or exempted as defined in WAC 388-470-0070.
A trust fund is considered unavailable for cash assistance and family medical programs when:
1. A household member cannot revoke the trust or change the beneficiary;
2. The trustee administering the funds is not under the direction of a household member or is appointed by the court with court-imposed limitations on the use of the funds;
3. The funds are used solely to make investments on behalf of the trust or pay for medical or educational expenses for a specific household member; and
4. The 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.
5. The client must petition the court to release part or all of a resource, including funds in blocked accounts or trusts. Review the status at each recertification/eligibility review.
For medical programs, see TRUSTS, ANNUITIES and LIFE ESTATES and WAC 388-561-0100.
Real Property
1. Public rights of way, such as roads that run through the surrounding property and separate it from the home, will not affect the exemption of the property.
2. Definition of a “good faith effort to sell” real property:
  1. Listing the property with a real estate company;
  2. Actively showing the property;
  3. Placing signs on the property and ads in the newspaper; and
  4. Asking a price that is at or under fair market value (FMV).

Real and Personal Property Used for Self-Employment

For cash assistance, real and personal property used for self-employment are excluded if:
1. The property is necessary to restore the client's independence or will aid in rehabilitating the client or the client's dependents; and
2. The client has an approved self-employment plan; and
3. For WorkFirst participants, the self-employment enterprise is a component of the participant's approved Individual Responsibility Plan (IRP).
Examples of real or personal property used in a self-employment business include:
1. Farm Land;
2. Farm Machinery;
3. Livestock;
4. Business Equipment; and
5. Business Inventory.
See the WorkFirst Implementation Handbook for developing the IRP for a self-employed WorkFirst participant.
For non-WorkFirst participants, an approved self-employment plan must include the following:
1. A time frame that the client's business will produce enough income to reduce the assistance unit's need for cash assistance;
2. A requirement for the client to give the department adequate verification to verify the business' assets and expenses on a monthly basis. See: Income - C. - Special Income Types
3. A statement of understanding between the client and the department that the real and personal property of the business will be excluded as long as there is an agreed plan.
4. If the client does not sign an agreed plan, the value of all real and personal property of the business will count toward the assistance unit's resource limit.

WORKER RESPONSIBILITIES

When the value of a child’s irrevocable educational trust fund is over $4000, determine the reason it is over the limit:
1. Disregard the amount over the limit that is due to interest, as long as it remains in the trust.
2. If the trust exceeds the limit for reasons other than interest, establish a period of ineligibility. See: TRANSFER OF PROPERTY - to Qualify for Cash Assistance.

EXAMPLE

A child deposits the following amounts into an irrevocable educational trust:

June $800
July $1,600
August $1,600

As of 8/31/02, there is $4,000 in the irrevocable educational trust. The trust earns $16 in interest in the month of September, bringing the balance of the trust to $4,016. The funds in this trust are treated as follows:

Original $4,000: Unavailable resource.
$16 interest earned from the original $4,000: Unavailable as long as it remains held in trust.

EXAMPLE

The child in the example above deposits an additional $1,600 of her earnings into her irrevocable educational trust, bringing the balance to $5,616. The funds in the account are treated as follows:

Original $4,000: Unavailable resource.
$16 interest earned from the original $4,000: Unavailable as long as it remains held in trust.
Additional $1,600 deposit: Unavailable resource, unallowable transfer of property. Impose a period of ineligibility based on this dollar amount.

If the client or child receives disbursements from the trust:
1. Exclude any disbursements that are spent for educational expenses such as tuition, books, school supplies, and clothes for school.
2. If the disbursements are not used for educational expenses:
  1. Treat the disbursements as a resource if the child or the child’s guardian owned or controlled the money before it was placed in the trust. If the amount of these disbursements causes the client’s resource to exceed the allowable limit, establish a period of ineligibility. See: TRANSFER OF PROPERTY - to Qualify for Cash Assistance.
  2. Treat the disbursements as unearned income if the child or the child’s guardian did not own or control the money before it was placed in the trust.

EXAMPLE

The trustee of a child’s irrevocable educational trust disburses $200 from the trust to the child to pay tuition for summer school. The money in the trust is from the child’s earnings. The $200 disbursement is excluded as both income and a resource.

EXAMPLE

The trustee of a child’s irrevocable educational trust disburses $200 from the trust to the child to buy a dog. The money in the trust was received as part of an insurance settlement and was deposited directly into the account from the insurance company, pursuant to a court order. The $200 is considered unearned income.

WAC 388-470-0055

Effective November 1, 2011

WAC 388-470-0055 How do my resources count toward the resource limit for basic food?

For Basic Food, if your assistance unit (AU) is not categorically eligible (CE) under WAC 388-414-0001, we count the following resources toward your AU's resource limit to decide if you are eligible for benefits under WAC 388-470-0005:
1. Liquid resources. These are resources that are easily changed into cash. Some examples of liquid resources are:
  1. Cash on hand;
  2. Money in checking or savings accounts;
  3. Money market accounts or certificates of deposit (CDs) less any withdrawal penalty;
  4. Stocks, bonds, annuities, or mutual funds less any early withdrawal penalty;
  5. Available trusts or trust accounts; or
  6. Lump sum payments. A lump sum payment is money owed to you from a past period of time that you get but do not expect to get on a continuing basis.
2. Nonliquid resources, personal property, and real property not specifically excluded in subsection (2) below.
3. Vehicles as described in WAC 388-470-0075.
4. The resources of a sponsor as described in WAC 388-470-0060.
The following resources do not count toward your resource limit:
1. Your home and the surrounding property that you, your spouse, or your dependents live in;
2. A house you do not live in, if you plan on returning to the home and you are out of the home because of:
  1. Employment;
  2. Training for future employment;
  3. Illness; or
  4. Natural disaster or casualty.
3. Property that:
  1. You are making a good faith effort to sell;
  2. You intend to build a home on, if you do not already own a home;
  3. Produces income consistent with its fair market value, even if used only on a seasonal basis;
  4. Is essential to the employment or self-employment of a household member. Property excluded under this section and used by a self-employed farmer or fisher retains its exclusion for one year after the household member stops farming or fishing; or
  5. Is essential for the maintenance or use of an income-producing vehicle; or
  6. Has an equity value equal to or less than half of the resource limit as described in WAC 388-470-0005.
4. Household goods
5. Personal effects;
6. Life insurance policies, including policies with cash surrender value (CSV);
7. One burial plot per household member;
8. One funeral agreement per household member, up to fifteen hundred dollars;
9. Pension plans or retirement funds not specifically counted in subsection (1) above;
10. Sales contracts, if the contract is producing income consistent with its fair market value;
11. Government payments issued for the restoration of a home damaged in a disaster;
12. Indian lands held jointly with the Tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs;
13. Nonliquid resources that have a lien placed against them;
14. Earned Income Tax Credits (EITC):
  1. For twelve months, if you were a basic food recipient when you got the EITC and you remain on basic food for all twelve months; or
  2. The month you get it and the month after, if you were not getting basic food when you got the EITC.
15. Energy assistance payments or allowances;
16. The resources of a household member who gets SSI, TANF/SFA, ABD assistance or PWA benefits;
17. Retirement funds or accounts that are tax exempt under the Internal Revenue Code;
18. Education funds or accounts in a tuition program under section 529 or 530 of the Internal Revenue Code;
19. Resources specifically excluded by federal law [Ed. Note: See Appendix] ; and
20. Federal income tax refunds for twelve months whether or not you were receiving Basic Food assistance at the time you got the refund.
If you deposit excluded liquid resources into a bank account with countable liquid resources, we do not count the excluded liquid resources for six months from the date of deposit. Exception: Federal tax refunds are not counted for twelve months even when mixed with countable resources.
If you sell your home, you have ninety days to reinvest the proceeds from the sale of a home into an exempt resource.
1. If you do not reinvest within ninety days, we will determine whether there is good cause to allow more time. Some examples of good cause are:
  1. Closing on your new home is taking longer than anticipated;
  2. You are unable to find a new home that you can afford;
  3. Someone in your household is receiving emergent medical care; or
  4. Your children are in school and moving would require them to change schools.
2. If you have good cause, we will give you more time based on your circumstances.
3. If you do not have good cause, we count the money you got from the sale as a resource.

This is a reprint of the official rule as published by the Office of the Code Reviser. If there are previous versions of this rule, they can be found using the Legislative Search page.

CLARIFYING INFORMATION

1. Trusts and trust accounts: A trust fund is considered unavailable for Basic Food when:

a. A household member cannot revoke the trust or change the beneficiary;

b. The trustee administering the funds is not under the direction of a household member or is appointed by the court with court-imposed limitations on the use of the funds;

c. The funds are used solely to make investments on behalf of the trust or pay for medical or educational expenses for a specific household member; and

d. The 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.

e. The client must petition the court to release part or all of a resource, including funds in blocked accounts or trusts. Review the status at each recertification/eligibility review.

2. Real Property

a. Public rights of way, such as roads that run through the surrounding property and separate it from the home, will not affect the exemption of the property.

b. Definition of a “good faith effort to sell” real property:

i. Listing the property with a real estate company;

ii. Actively showing the property;

iii. Placing signs on the property and ads in the newspaper; and

iv. Asking a price that is at or under fair market value (FMV).

3. We do not count livestock as a resource if they are essential for self-employment. We also exclude them if they are raised as pets or used for food.

4. Retirement Accounts / Pension Plans:

Retirement funds, pension plans, and retirement accounts are excluded as a resource for Basic Food. These retain their exclusion regardless of the client’s employment status. Below are some examples of retirement funds or pension plans that we exclude for Basic Food:

a. Individual Retirement Accounts including SEP IRAs;

b. Keogh plans;

c. Federal Employee Thrift Savings plans;

d. 401(a) and 401 (k) plans (generally a cash-or-deferred arrangement that is limited to profit-making firms);

e. 403(a) and 403(b) plans (tax-sheltered annuities provided for employees of tax-exempt organizations and State and local educational organizations);

f. 408 and 408(a) plans (Roth IRAs);

g. 457 plans (plans for State and local governments and other tax-exempt organizations); and

h. Section 501(c)(18) plans (retirement plans for union members consisting of employee contributions to certain trust that must have been established before June 1959).

5. Education Accounts:

Funds in an education account or plan under section 529 and 530 of the Internal Revenue Code are exempt for Basic Food. 529 plans are often referred to as prepaid tuition or college savings plans. A 530 plan is known as a Coverdell Education Savings Account and used to be called an Education IRA.

6. Some examples of lump sums for Basic Food are:

a. Insurance settlements;

b. Income tax refunds or rebates;

c. Refunds of cleaning, damage, security, or utility deposits;

d. VA Disability Pension annual adjustment payment; and

e. Business and personal loans. We count the "payoff amount" that the bank or other financial institution wants to satisfy the loan.

7. For Basic Food, all loans, except educational loans, are considered countable resources. This also includes:

a. Cash withdrawn from a credit card account; and

b. The available portion of secured credit cards. To determine the available portion:

i. Determine that the client can actually access the funds by canceling the credit card; and

ii. Subtract any amount owed to the credit card company for purchases.

WAC 182-509-0225

Effective July 1, 2012

WAC 182-509-0225 Excluded resources for family medical programs

"Continuously eligible" means, for the purposes of this chapter, there has not been a break of a calendar month or more in a client's eligibility since the date the client received resources in an amount that would cause the client to exceed the resource limit of a family medical program.

The department does not count any increase in a client’s resources received while a client:
1. Is eligible for and receiving coverage under a family medical program; and
2. Remains continuously eligible for a family medical program.
The department does not count the resource increase for a client:
1. Who meets the requirement of subsection (1)(a) of this section;
2. Whose family medical program is terminated; and
3. Who is later found eligible for all months since the termination, which may include a retroactive period of up to three months.
The department counts the resources increase when the client is ineligible for a family medical program for a full calendar month or more except as described in subsection (2) of this section.
When determining the eligibility of a Holocaust survivor for a family medical program, the department does not count the recoveries of:
1. Insurance proceeds; and
2. Other assets.
For the purposes of this section, a family medical program includes the medical extension benefits as described in WAC 388-523-0100.

This is a reprint of the official rule as published by the Office of the Code Reviser. If there are previous versions of this rule, they can be found using the Legislative Search page.

CLARIFYING INFORMATION

Family medical programs include the following medical coverage groups:

F01	For families who also receive TANF or SFA cash
F02	Medical extensions for families whose earned income has increased above the CNIL
F03	Medical extensions for families whose child or spousal support has increased above the CNIL
F04	For families who receive medical without cash
F09	Far an alien determined eligible under the Alien Emergency Medical program

When a family is receiving medical benefits under any of the medical coverage groups listed above, any increase in countable resources while the family continues to receive medical benefits does not count.
There is no limit on the number of certification periods a family can receive the resource exclusion.
The family remains eligible for the resource exclusion even if the client has a break between certification periods when:
1. The family was eligible for and receiving a family medical program when the resources increased; and
2. Is determined eligible for all the months since the end of the last certification period.

EXAMPLE

A family applies for TANF cash and medical (F01) and is determined eligible. The family reports an increase in resources. The family is ineligible for Cash TANF due to excess resources. The medical trickles to F04 through the end of the 12-month certification period (based on the last application, completed eligibility review or Basic Food review). At the end of the medical certification period, the family completes the eligibility review. While the family’s resources continue to exceed the limit, the family meets all other eligibility criteria. Do not count the excess resources because the family has maintained continuous eligibility for a family medical program.

EXAMPLE

A family reports a planned move out of state and the medical is terminated effective the end of the month. On the 10th of the following month, the family reapplies because they changed their mind about moving. Do not count the family’s excess resources because the family is continuously eligible.

EXAMPLE

A family that previously reported an increase in resources does not complete an eligibility review at the end of the 12-month certification period and benefits end effective June 30, 2002. The family reapplies in August 2002 and requests retro coverage. Retro medical is approved for July. The family continues to have excess resources but meets all other eligibility criteria. The family remains eligible for the resource exclusion because, due to the approval of the retro medical, the family has not had a break in assistance and meets the requirement of continuous eligibility.

EXAMPLE

A family’s earned income increases and the family is not eligible for Cash TANF. They are eligible for a medical extension under F02. At the end of the certification period, the family completes an eligibility review. The family income has decreased under the F04 standard but the family resources now exceed the standard. The family continues to receive the resource exclusion because they have been continuously eligible for a family medical extension under F02.

EXAMPLE

An undocumented family applies for medical benefits. The family meets the eligibility requirements for F04 medical, except citizenship requirements. Only the father has an emergent medical condition. His certification period under the Alien Emergency Medical Program (F09) is for three months. During that period, he receives a cash insurance settlement from his accident. At the end of the 3-month period, he may be certified for another 3-month period because he continues to have an emergent medical condition and meets all other eligibility criteria. Do not count his excess resources because he has been continuously eligible for a family medical program.

Examples of Families NOT Eligible for the Resource Exclusion

EXAMPLE

A family does not complete an eligibility review at the end of the certification period. The family’s medical benefits stop effective August 31, 2002. The family reapplies in January 2003 and requests retro medical for the three months before the month of application (October, November, December). The family now has excess resources. The family is ineligible for F04 because of excess resources. The department counts the resources because the family had a break in eligibility for a full calendar month. The family does not meet the requirement of continuous eligibility necessary to receive the resource exclusion. Retro medical and ongoing medical are denied.

NOTE:

Should the family apply again and have resources under the standard, the family could be F04 eligible. If the family’s resources again increase over the standard, allow the family the resource exclusion as long as the family is continuously eligible for a family medical program.

EXAMPLE

A mother and child are receiving F04 medical. The mother’s resources increase while she is receiving family medical. She loses custody of her child in 5/01. The department continues the mother’s medical coverage in 6/01 during the redetermination process. Mom is determined ineligible for any medical program effective 6/10/01. Mom regains custody of her child and reapplies for medical in 7/01, because she did not have custody of her child. Count the resources because the family is ineligible for a full calendar month or more. The family no longer meets the requirement of continuous eligibility necessary to receive the resource exclusion.

REPEALED

WAC 388-470-0040