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Chapter: 1600 Assets Program: CIC 4 1650.0400 GENERAL DETERMINATION OF ASSET VALUE (CIC) The value of an individual's assets is based on the total value of the assets at the time they become available. In order to be eligible, an individual's assets must be within the program limits at the time of application disposition. 1650.0401 Time When Asset Value Affects Eligibility (CIC) The point in time when an asset determination is made may depend on the program and whether the eligibility specialist is processing an application or conducting an eligibility review. Passages 1650.0402 and 1650.0404 describe program specific policy in this area. 1650.0402 Asset Eligibility (CIC) Assets must be equal to or below program limits as of the application disposition date to be eligible for ongoing assistance. Assets must be equal to or below program limits as of the date of the interview. 1650.0404 When Asset Value Affects Eligibility (CIC) Assets must be equal to or below program limits for:

1. the month of application, as of the date of application; 2. the month of disposition, as of the date of disposition; and 3. any other month, as of the first day of that month.

This policy applies to the Title IV-E Foster Care Program. 1650.0406 Determining Asset Value (CIC) The amount of the asset included is the actual value of the asset minus indebtedness. Indebtedness is the amount needed to satisfy contract terms that must be met to establish ownership of the asset. Do not count income as an asset in the month received. This does not apply to SSI lump sums (see 2640.0421). Any income which is not spent in the month received becomes an asset the month following the month of receipt. Therefore, when determining asset value in a particular month, it may be necessary to deduct income added to the asset the same month.

Cash value and indebtedness determinations will be discussed for each type of asset. 1650.0407 Definition of Actual Value (CIC) For assets that are in cash, or payable in cash on demand, the actual value is the cash value. For other forms of assets, the actual value is the fair market value (the amount of cash that could be received by selling or converting the asset). 1650.0409 Conversion of Assets (CIC) Proceeds, including cash, from the sale of an asset or conversion of an asset from one form to another are considered assets rather than income. The proceeds of the item to which the asset is converted must be evaluated to determine if they affect eligibility, and if so, the value of the new asset.

Verification concerning the new asset must be obtained regardless of whether a liquid or nonliquid asset is involved. For example, an individual may have an automobile (nonliquid asset) which he sells for cash (liquid asset), or he may have cash that he uses to purchase an automobile. In either case, the conversion or sale does not result in income to the individual. The newly acquired item is an asset subject to all asset valuation policy.