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Chapter: 1600 Assets Program: TCA 27 1620.0550 Indian Land (TCA) Land that is held by an enrolled member of an Indian tribe is excluded from assets if it cannot be sold or transferred without the permission of other individuals, the tribe, or a federal agency. 1620.0551 Life Estate Interest (TCA) Any life estate interest held by an individual, the individual’s spouse, a child or specified relative is excluded as an asset to the individual. Also, transfers of life estates need not be examined for potential penalties.

Although individuals owning life estates have the right to obtain profits from the estate property they do not have exclusive rights to the benefits of the property. Therefore, only that portion of the income made available to the individual will be counted as income to the individual. 1620.0553 Life Insurance (TCA) The cash value of a life insurance or annuity policy is included as an asset. The cash value must be verified if the face value of the policy is $5,000 or more or the policy is five years old or more.

In order to be defined as available, the policy must be owned by the individual and the person insured must either be the individual or a member of the assistance group. Policies carried on the individual or a TCA child by relatives or others whose needs or assets are excluded are not considered available. 1620.0555 Verification of Life Insurance (TCA) The individual must provide the following information on life insurance policies:

1. the owner of the policy; 2. the individual insured by the policy; 3. the amount of the policy's cash surrender value, if any; and 4. the amount of any dividends or interest earned on this policy.

The life insurance policy may provide all the necessary information. If not, the information may be obtained from the insurance company or a local agent. However, it is not necessary to see the policy(s) or contact the company unless the cash value must be verified.

For TCA, the cash value must be verified if the face value of the policy is $5,000 or more or the policy is five years old or more. Otherwise, the applicant/recipient's statement can be accepted. 1620.0558 Loans (TCA) Money loaned to another person is considered an asset when the individual(s), parent, or relative has a legal document verifying the loan. The balance owed the applicant/recipient on the loan is considered its asset value.

A loan is a transaction when one party (lender) advances money to another party (borrower) who promises to repay the debt in full within the borrower's lifetime. Repayment of loans may or may not include interest. A loan may take the form of a formal written document or an informal verbal agreement. A formal written loan agreement is a form of a promissory note.

A promissory note is a written, unconditional agreement signed by a person who promises to pay a specific sum of money at a specified time, or on demand, to the person, company, corporation, or institution named on the note. A promissory note may or may not involve the loan of money or goods (e.g., a promissory note may be given in return for goods or service rendered). A loan is a transaction when one party (lender) advances money to another party (borrower) who promises to repay the debt in full within the borrower's lifetime. Repayment of loans may or may not