Page 33

Chapter: 1600 Assets Program: MSSI, SFP 29

1640.0561.04 Home Equity Plans (MSSI, SFP) Home Equity Conversion Plans, home equity loans and home equity lines of credit allow home owners to convert the value of their homes into cash. The proceeds from these plans are usually paid out in monthly installments and are not considered an asset unless the proceeds are retained into the following month.

The amount of an individual’s equity in their home is not reduced until the proceeds from a home equity plan are received.

Home equity loans and lines of credit are a loan against the equity of the home. The proceeds of a loan are not counted to the borrower as income or as an asset in the month of receipt. Funds from a loan that are given away in the month of receipt are potential transfers and are subject to transfer penalties if fair compensation is not received.

Refer to annuity policy in 1640.0609.02 and 1640.0609.03 if an annuity is purchased with the proceeds from a home equity plan. 1640.0562 Student Grants, Loans and Scholarships (MSSI, SFP) Any grants, loans, gifts or scholarships received by an individual for educational expenses are excluded as an asset. This is true even if the loan or other money is received in a lump sum and deposited as cash in a bank. The individual must provide information on the amount and type of the grant, loan, gift or scholarship. 1640.0563 Personal Property (MSSI, SFP) Personal property includes personal effects such as clothing, jewelry, tools of a trade, and pets, in addition to household goods such as furniture and appliances. Generally, personal property is excluded as an asset. For institutional care (or HCBS) applicants with community spouses, all personal property is excluded if the applicant was admitted to the institution on or after September 30, 1989. 1640.0565.01 Personal Property (MSSI, SFP) Household Items and Personal effects Exclude household goods and personal effects from resources, regardless of their dollar value

Household goods Household goods are items of personal property, found in or near the home, the householder uses on a regular basis. The householder needs household goods for maintenance, use, and occupancy of the premises as a home.

Examples of household goods include • Furniture; • Appliances; • Electronic equipment, for instance computers and televisions; • Carpets; • Cooking and eating utensils; and, • Dishes.

Personal effects Personal effects are items of personal property ordinarily worn or carried by the individual, or items that have an intimate relation to the individual.

Examples of personal effects include Personal effects may consist of the following: • Personal jewelry, including wedding and engagement rings;