Clarifying Information - WAC 388-470-0045

Applicants and recipients of cash assistance can have up to $12,000 in liquid resources.

Some examples of liquid resources for cash assistance programs are:

1. Cash on hand;
2. Money in checking and savings accounts;
3. Money market accounts or certificates of deposit (CD or COD) less any withdrawal penalty;
4. Stocks, bonds, annuities, or mutual funds less any early withdrawal penalty;
5. Available trusts or trust accounts;
6. Lump sum payments.

Some examples of excluded resources for cash assistance programs are:

1. Personal property of great sentimental value;
2. Bona fide loans, including student loans;
3. Benefits from the Basic Food Program;
4. Income tax returns or Earned Income Tax Credit (EITC), for up to twelve months;
5. Washington state Working Families Tax Credit (WFTC);
6. Available retirement funds or pension benefits;
7. One burial plot for each AU member;
8. The income and resources of an SSI recipient;
9. A trust fund when:
   
   • A household member can’t revoke the trust or change the beneficiary;
   • The trustee administering the funds isn’t under the direction of a household member or is appointed by a court with court-imposed limitations on how the funds are used;
   • The applicant/recipient 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
   • 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
   • The investments made on behalf of the trust don’t directly involve or assist any business or corporation under the control, direction, or influence of a household member.
10. Real property that is:
    
    1. Your home and surrounding property;
    2. Indian lands held jointly with a tribe; and
    3. Property that you’re trying in good faith to sell, intend to build a home on, or that produces income consistent with its fair market value.
11. Real Property
    
    • Public rights of way, such as roads that run through the surrounding property and separate it from the home, don’t affect the exemption of the property.
    • 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

1. For cash assistance, real and personal property used for self-employment are excluded if:
   
   1. The property is necessary to restore the independence or aids in rehabilitating the applicant/recipient or their dependents;
   2. The applicant/recipient 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).
2. Examples of real or personal property used in a self-employment business include:
   
   • Farm Land;
   • Farm Machinery;
   • Livestock;
   • Business Equipment;
   • Business Inventory.
3. For non-WorkFirst participants, an approved self-employment plan must include:
   
   • A time frame that the applicant/recipient’s business will produce enough income to reduce the assistance unit's need for cash assistance;
   • A requirement for the applicant/recipient to give the department adequate verification to verify the business' assets and expenses on a monthly basis. See: Income - C. - Special Income Types; and
   • A statement of understanding between the applicant/recipient and the department that the real and personal property of the business will be excluded as long as there is an agreed plan.

Note: If the applicant/recipient doesn’t sign an agreed plan, the value of all real and personal property of the business counts toward the assistance unit's resource limit.

 Clarifying Information - WAC 388-470-0055 

1. Trusts and trust accounts:

   A trust fund is considered unavailable for Basic Food 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.

    

2. Real Property
3. 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.
4. 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).

• 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.
• 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:

  1. Individual Retirement Accounts including SEP IRAs;
  2. Keogh plans;
  3. Federal Employee Thrift Savings plans;
  4. 401(a) and 401 (k) plans (generally a cash-or-deferred arrangement that is limited to profit-making firms);
  5. 403(a) and 403(b) plans (tax-sheltered annuities provided for employees of tax-exempt organizations and State and local educational organizations);
  6. 408 and 408(a) plans (Roth IRAs);
  7. 457 plans (plans for State and local governments and other tax-exempt organizations); and
  8. 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).

• 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.

• Some examples of lump sums for Basic Food are:
  1. Insurance settlements;
  2. Income tax refunds or rebates;
  3. Refunds of cleaning, damage, security, or utility deposits;
  4. VA Disability Pension annual adjustment payment; and
  5. Business and personal loans. We count the "payoff amount" that the bank or other financial institution wants to satisfy the loan.
• For Basic Food, all loans, except educational loans, are considered countable resources. This also includes:
  1. Cash withdrawn from a credit card account; and
  2. The available portion of secured credit cards. To determine the available portion:
     1. Determine that the client can actually access the funds by canceling the credit card; and
     2. Subtract any amount owed to the credit card company for purchases.

Clarifying Information - WAC 388-470-0005

1. Legal Barriers: A resource is unavailable if there is a legal barrier to its sale. Examples of legal barriers include:
   1. Property that is tied up in a divorce proceeding.
   2. Jointly owned property that the client cannot sell because the other owners do not agree to sell it.
   3. Property for which the client cannot get a clear title.
   4. The client does not have the necessary funds to retain an attorney.
2. For Cash:  If the legal barrier can be overcome, require the cash assistance client to take reasonable steps to do so unless the cost of legal action would be more than the client would gain or the legal action is not likely to succeed.
   1. Exempt the property permanently if the client cannot overcome the barrier.
   2. Treat the property as unavailable and exclude it for the period of time the client attempts to make a resource available. Review the status at each recertification/eligibility review.
   3. If the client overcomes the barrier, count the property to determine the client's eligibility unless the client makes a bona fide effort to dispose of the property as described in 7. below.
3. If a client must petition the court to release part or all of a resource, including funds in blocked accounts or trusts, it is unavailable. Review the status at each recertification/eligibility review.
4. Community property is all property held in the name of either the husband or wife or both. We consider community property as a resource potentially available to the assistance unit.
5. We consider property to be separate property when:
   1. The property was acquired by either spouse before marriage;
   2. The property was acquired as a gift or inheritance by either spouse; or
   3. The property was acquired and paid for entirely out of income from separate property.
6. Commingling of income from separate property and community income in the purchase, maintenance, or improvement of property may destroy the status of separate property. If you are unable to determine what income paid for what, then the separate property designation is destroyed.
7. For all programs, if the client has available nonexempt real property, exclude the property while the client makes a good faith effort to sell it. The client must accept any reasonable offer on the property for this exemption. Good faith efforts include:
   1. Listing the property with a real estate company;
   2. Actively showing the property; and
   3. Placing signs on the property and ads in the newspaper.
   4. Asking a price that is at or under fair market value (FMV).
8. Exclude any non-liquid assets if a creditor placed a lien on the property to secure a business loan and does not allow the AU to sell the property. Examples of non-liquid assets include land, crops, buildings, farm equipment and machinery.
9. If a resource is currently unavailable, but you are reasonably certain that it will become available, create an alert to review its status.
10. When a client owns a resource with someone outside of the AU, such as a joint bank account:
    1. For cash assistance, we count an equal portion of the resource that belongs to each person who owns it.
    2. Basic Food, we count the entire amount unless the client can prove that the entire amount is not available to them. To determine the amount that is unavailable, we use:
       1. The client's statement about ownership of the funds, the reason the account was established, who made deposits, withdrawals, etc., and how the withdrawals were spent.
       2. A corroborating statement from other account holder(s).

Worker Responsibilities - WAC 388-470-0005 

1. Follow these steps for assistance units (AU) with resources:
   1. Determine whether the AU owns resources, and whether they are available.
   2. Separate the excluded from the countable resources. See Countable Resources.
   3. Add the values of all countable resources.
   4. Compare the total countable resources to the appropriate limit.
   5. Set alerts to review unavailable resources that might become available.
   6. For Basic Food only, if the AU is categorically eligible, do not count any resources.
2. Accept the client’s statement as verification unless it is questionable. This means we use:
   • What the client enters on the application / eligibility review form.
   • What the client tells you during the interview.
3. When an AU reports receipt of a resource that exceeds the applicable resource limit (by itself or in addition to other countable resources):
   1. Allow the AU 10 days to update the CSO information about the resources it owns and their current value.
   2. Stop benefits when the AU fails to update its declared resources or its resources exceed the applicable resource limit. See: Letters A. - Related WAC - WAC 388-458-0030.
4. When a recipient converts a resource to a new type:
   1. Allow the AU 10 days to update the CSO information about the resources it owns and their current value.
   2. Determine whether the new resource is excluded or countable.
   3. If the total of all countable resources is over the limit, stop the benefits and provide the AU with advance and adequate notice. See: Letters A. - Related WACWAC 388-458-0030.

Clarifying Information - WAC 388-470-0070 

1. To be considered a vehicle, the transportation device must have a motor. If it doesn’t have a motor, it’s considered personal property.
2. To determine the fair market value of a vehicle, check the current value as listed in the Kelley Blue Book at https://www.kbb.com/or JD Power at https://www.jdpower.com/cars. The amount owed on the vehicle is subtracted from the value to determine the amount of equity the person has in the vehicle. The equity value of the vehicle is the countable resource amount.
3. The entire value of one vehicle, used by the assistance unit as a means of transportation, is excluded.
4. If a client in the assistance unit has a physical disability, an additional vehicle they use for transportation can be excluded
5. Even though motor homes are generally considered vehicles, we don’t treat them like vehicles for cash assistance. We treat motor homes the same way we treat real property. See WAC 388-470-0045 for how to treat real property.
6. To determine if a vehicle should be considered a motor home, use this definition:

A motor home is a vehicle that’s designed to provide temporary living accommodations for recreational, camping, or travel use. It’s built on or permanently attached to a self-propelled motor vehicle chassis, or on a chassis cab or van, that’s an integral part of the completed vehicle.

 Clarifying Information - WAC 388-470-0075

1. Categorical Eligibility:

   We don't count a client's vehicles as a resource if their AU is categorically eligible (CE) for Basic Food under WAC 388-414-0001.

2. Resources of ineligible AU members:

   Resource rules apply to all AU members. This includes someone who is an ineligible member of the AU under WAC 388-408-0035.

3. What counts as a vehicle for Basic Food:

   The following items are not considered vehicles for Basic Food:

   These items are considered personal property.

   • Motorized children’s cars/trucks;
   • Utility trailers such as horse trailer; or
   • Campers.
4. Leased Vehicles:

   We do not count leased vehicles toward the assistance unit's resource limit.

5. Vehicle used to transport a physically disabled AU member:
   1. We can exempt one vehicle for each physically disabled AU member. The disability does not have to be permanent to qualify for the exclusion.
   2. Use prudent person to determine if the person is physically disabled.
   3. If the person does not appear to be physically disabled but they claim that they are, ask them to provide verification from a physician. In circumstances that appear questionable, please contact CSD Headquarters, Office of Programs and Policy, Program Manager assigned to the program for assistance to determine if the exemption is appropriate.
   4. If a temporary disability ends, the vehicle exclusion for transporting a disabled member also ends.

 Worker Responsibilities - WAC 388-470-0075

1. Use the following chart to help you decide how to treat a vehicle:

   For the following types of vehicles:	Fair Market Value - FMV Test	Equity Test
   Producing Income	Exempt	Exempt
   Used as a home	Exempt	Exempt
   Transporting a disabled household member	Exempt	Exempt
   Carrying fuel for heat or water for home use	Exempt	Exempt
   Value is inaccessible (sale would produce $1500 or less)	Exempt	Exempt
   One licensed vehicle per adult household member	FMV - $4,650 = Excess Value	Do Not Apply Equity Test
   Any other licensed vehicle a household member under age 18 drives to work, school, training, or to look for work	FMV - $4,650 = Excess Value	Do Not Apply Equity Test
   Additional Licensed Vehicles	Use the greater of:
   FMV - $4,650 = Excess Value	FMV - $ Amount Owed = Equity Value
   Unlicensed Vehicles	Do Not Apply Fair Market Value Test	FMV - $ Amount Owed = Equity Value

2. Determining the value of a vehicle:

   1. Use the trade in value from Kelley Blue Book online to determine the value of the vehicle. You will need to enter the mileage and the condition. Use the greater amount of the client's actual mileage or 12,000 miles x age of the car in years.
   2. If the vehicle is not listed in Kelley’s, you may use the NADA hard cover to determine value. The on-line NADA free website should not be used by State agencies for vehicle valuation.

      Food & Nutrition Services Administrative Notice 99-37:”To determine if the low retail value on the NADA free website is equivalent to a vehicle's wholesale value we compared the NADA low retail value with the wholesale or trade-in values listed on other websites for several different vehicles. In every case the NADA low retail was well above the wholesale value on the other websites (as well as the wholesale value in the NADA paper blue book). The differences between the NADA low retail values obtained thorough its free website and the wholesale values from other sources were so significant (in some cases the difference was well over $1,000) that we have determined that the NADA free website may not be used by State agencies for vehicle valuation.”

   3. If the client disagrees with the information from Kelley Blue Book or NADA hard cover, ask the client to verify the true value of the vehicle from a reliable source.

3. Amount Owed:

   Accept the client’s statement of the amount the client owes on a vehicle unless you have a reason to question what they state. If the statement is questionable, ask the client to verify the amount they owe.

4. Vehicles with $1,500 or less equity:

   Exclude a client's vehicle for Basic Food when they would not get more than $1,500 out of the vehicle if they were to sell it.

   1. Use the current fair market value of the vehicle would be whatever price the AU could sell it for at present and in its present condition. Do not use the purchase price the client bought the car for unless the client could actually sell it for this amount.
   2. If you determine a value for the client's vehicle and the client disagrees with the value, give them the opportunity to verify the true value from a reliable source. This includes sources as mechanics, used car dealers, junk dealers etc.
   3. Subtract any amount the client legally owes on the vehicle if they were to pay the loan off today. Do not use the contract amount that includes interest over the period of the loan.
   NOTE:

   The equity someone has in a vehicle changes with the payments the client makes as well as the changing resale value of the vehicle. A vehicle you exclude for having equity of $1,500 or less at one point may count as a resource at some point in the future. Review the equity value at each recertification.

   EXAMPLE:

   A three-person Basic Food unit AU contains a ten-year-old child who has a physical disability. The AU has four vehicles in their names:

   • 1988 Ford Taurus with a FMV of $1,240. Nothing owed;
   • 1988 Hyundai Excel with a FMV of $125. Nothing owed;
   • 1999 Ford Mustang with a FMV of $7,955 - $6,455 owed; and
   • 2001 Mitsubishi Galant with a FMV of $8,550 - $2,400 owed.

   In this example, exclude the Mitsubishi Galant because it is needed to transport the disabled child. Exclude all the other vehicles because the AU has equity of $1,500 or less in each car.

   EXAMPLE:

   A two-person Basic Food unit AU has one vehicle in their name:

   • 1993 Mazda RX7 Coupe with a FMV of $9,625. - $4,200 owed;

   In this example, we can't exclude the vehicle based on use or the client's equity in the car. Subtract $4, 650 from the FMV of $9,625 and count $4,975 toward the client's resource limit for Basic Food . The AU is not eligible for Basic Food.

   EXAMPLE:

   A one-person Basic Food unit AU has two vehicles. The client uses one vehicle for their taxi business (the Ford) and the other vehicle for their personal use:

   • 2001 Ford Crown Victoria with a FMV of $9,725 - $1,900 owed;
   • 1987 Porsche 944 Coupe with a FMV of $2,125. Nothing owed.

   In this example, exclude the Ford because the client uses it to produce income. Exclude the Porsche because the FMV is less than $4,650.

Clarifying Information - WAC 388-470-0060 

1. Income of an alien's sponsor:

   If a client was sponsored under the INS affidavit I-864 or 864A, we must also deem the income of the sponsor under WAC 388-450-0155.

2. Old Affidavits of support:

   INS previously used an I-134 affidavit of support for people who sponsored a family member. We only deem a sponsor's resources to an alien if the sponsor completed the I-864 or I 864-A.

3. Deeming resources is time limited for state funded benefits:

   Under WAC 388-450-0156, we only deem the sponsor's resources to the client for five years if the client receives state-funded benefits.

Worker Responsibilities - WAC 388-470-0060 

Take the following steps to determine the amount of resources to deem to the sponsored alien:

1. If an alien's sponsor has resources, determine the amount of countable resources the sponsor has under Chapter 388-470-WAC.  (See How Resources Count)
2. Add the countable resources of the sponsor's spouse only if the spouse signed the affidavit of support.
3. Subtract $1500.00 from the amount in step 2 above. The result is the amount to deem to the sponsored alien.
4. If the alien's sponsor has sponsored more than one alien, divide the result above by the number of aliens they sponsored.