10-144 C.M.R. ch. 301, § 300-FS 333-2 - Asset Exclusions

1. GENERAL RULE

The value of the following assets are not counted. (These assets are considered "excluded").

A. the home in which the household lives and the surrounding lot, if not separated by property owned by someone else,

B. the home and lot which is temporarily unoccupied because of employment, job training, illness, or disaster if the household intends to return,

C. the lot on which the household plans to build, or is building their primary residence if the household does not already own (or is buying) their home,

D. vehicles used as the household's home,

E. assets with cash value not accessible to the household, such as:

(1) property in probate, or property which is inaccessible due to legal action;

EXCEPTION: this exclusion does not apply to jointly owned vehicles if the household member has possession of, or use of, the jointly owned vehicle. (See Section 333-3.)

(2) real property which the household is making a good faith effort to sell at a reasonable price;

NOTE: A "good faith effort to sell" must be verified through documentation that: the property is offered for sale in a major newspaper, through a real estate broker, or other comparable venue; and the household has not declined a reasonable offer.

(3) installment contracts for the sale of property (including vehicles), if the agreement is producing income consistent with its fair market value. Fair market value and consistent income may be determined by contacting local realtors, assessors, etc. Treatment of income from installment contracts is found in Section 555-3.

(4) certain jointly held assets (Section 333-1(3)) that cannot be subdivided and the joint owner will not agree to sell;

(5) irrevocable trusts when:

(a) The agreement is not likely to cease;

(b) No household member has power to revoke or change it;

(c) The trustee is either a court, institution, etc. not under control of a household member or is an individual appointed by a court which has imposed limitations on the use of funds;

(d) Investments made on behalf of the trust do not involve or assist any business or corporation under the direction or influence of a household member; and

(e) The funds held in trust-

(i) were established by a non-household member, or

(ii) are used solely for trust investments or to pay the educational or medical expenses of beneficiaries.

F. non-liquid assets that cannot be sold or disposed of for a significant return.

The sale or disposition of a resource is not considered to provide a significant return if it is unlikely to yield $1,500 or more, after estimated costs of sale or disposition and taking into account the ownership interest of the household.

Exceptions:

(1) vehicles, and

(2) homes, including mobile homes, used primarily for vacation purposes.

G. household goods - such as furniture, appliances, and gift cards;

H. personal effects - such as clothing, jewelry and non-fungible assets;

I. prepaid funeral contracts, burial space, and the value of one bona fide funeral agreement per household member;

J. life insurance;

K. pension funds;

L. taxed-preferred retirement accounts, as described from the Internal Revenue Service (IRS) code, below:

(1) Section 401, Traditional Defined- Benefit Plan

(2) Section 401(a), Cash Balance Plan

(3) Section 401(a), Employee Stock Ownership Plan

(4) Section 401(a), Keogh Plan

(5) Section 401(a), Money Purchase Pension Plan

(6) Section 401(a), Profit-Sharing Plan

(7) Section 401(a), Simple 401(k)

(8) Section 401(a), 401(k)

(9) Section 403(a), 403(a)

(10) Section 403(b), 403(b)

(11) Section 408 IRS, Individual Retirement Arrangement (IRA)

(12) Section 408(p), Simple retirement account IRA

(13) Section 408(k), Simplified Employee Pension Plan (SEP)

(14) Section 408A IRS, Roth IRA

(15) Section 408A IRS, myRA

(16) Section 457(b), Eligible 457(b) Plan

(17) Section 501(c), 501(c) 18 Plan

(18) Section 8439 of Title 5 USC, Federal Thrift Savings Plan

M. vehicles which are totally exempt (Section 333-3) ;

N. income producing real property - if the property is annually producing income consistent with its fair market value, even if only used on a seasonal basis;

O. tools and equipment necessary for employment - even if the person is not currently employed, the tools and equipment need not be producing income consistent with the fair market value;

P. Property, including licensed vehicles, essential to self-employment farming for one year from the date self-employment farming was terminated.

Q. government payments - to restore a home damaged in a disaster, provided the funds are restricted to this purpose;

NOTE: Payments from private insurance settlements are counted.

R. assets which have been prorated as income, such as -

(1) student income from grants and loans;

(2) self-employment income;

(3) contract income;

S. livestock - used to produce income or intended for family consumption;

T. Indian lands - held jointly with the Tribe;

U. assets excluded by Federal statute including, but not limited to -

(1) payments excluded by Congressional action (examples - the Maine Indian Land Claims Settlement or The Agent Orange Settlement Fund),

(2) payments to Indian Tribal members regarding sub-marginal land held in trust by the U.S.,

(3) The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) benefits,

(4) reimbursement from Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970,

(5) payments received from The Job Training Partnership Act (JTPA),

(6) payments from LIHEAP (Section 999-1),

(7) Housing and Urban Development (HUD) retroactive tax and utility cost subsidy; and

(8) Achieving a Better Life Experience (ABLE) accounts, established under Sec. 529A of the Internal Revenue Code of 1986.

V. The assets of any household member who receives Supplemental Security Income (SSI) or Temporary Assistance for Needy Families (TANF) or Parents as Scholars (PaS);

W. A federal earned income tax credit received either as a lump sum or as payments under section 3507 of the Internal Revenue Code for the month of receipt and the following month for the individual and that individual's spouse;

X. Any federal, state, or local earned income tax credit received by any household member for 12 months, provided the household was participating in SNAP at the time they received the earned income tax credit and provided the household participates continuously during that 12-month period. Breaks in participation of one month or less due to administrative reasons, such as delayed recertification, shall not be considered as nonparticipation in determining the 12-month period;

Y. Matching awards of Savings Offer Success (SOS) made by Rural Opportunities, Inc. (ROI) to households that participate in their program;

NOTE: The individual's contribution are counted.

Z. Funds in the Department of Housing and Urban Developments (HUD) Family Self-Sufficiency Program (FSS) escrow accounts;

AA. Family Development Accounts or Separate Identifiable Accounts set up as authorized by state law 20-A M.R.S. § 10982 of up to the $10,000 cap and any accrued interest;

BB. Federal Thrift Savings accounts as provided in Sec. 8439, Title 5, U.S.C.; and

CC. Education savings accounts established under Sec. 529 (qualified tuition program), and Sec. 530 (Coverdell education savings) of the Internal Revenue Code of 1986.

2. TREATMENT OF EXCLUDED FUNDS

A. Excluded funds kept in a separate account are exempt for an unlimited time.

B. Excluded funds that are deposited in an account with other funds are only exempt for six months from date they are co-mingled.

EXCEPTION: Earned income tax credits excluded in Section 333-2(1)(X) continue to be excluded for 12 months even if they are co-mingled with other funds.

C. Student grants, deferred loans and self-employment funds are not counted as assets for the period of time they have been prorated as income. (See Section 444-8.)

Notes

10-144 C.M.R. ch. 301, § 300-FS 333-2