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COMAR 10.09.24.01-.16 1681 State of Maryland Medical Assistance Manual Revised July 2012

(c) Household goods and personal effects include, but are not limited to, items of personal clothing, toilet articles, prosthetic devices, an engagement ring, and a wedding ring. (3) Life Insurance with a Maximum Face Value of $1,500 for Each Person. (a) Life insurance policies such as term or burial insurance which do not have a cash surrender value may not be used in determining the total face value of all policies. (b) Whenever the total face value of all policies exceeds the allowable maximum face value, the entire cash surrender value of these policies shall be counted as a resource. Cash surrender value includes all available accrued dividends and interest. (4) Burial spaces for a person and the person's immediate family. (5) Income-Producing Property. (a) Income-producing property associated with the home includes farm machinery, business equipment, vehicles, special tools, farm animals, and livestock related to self-support activities. This property shall be excluded if the total equity value of these resources does not exceed the limit set forth in §H(5)(c) of this regulation and the resource produces a net annual return of at least 6 percent of the equity. (b) Income-producing property not associated with the home includes land, buildings, farm machinery, business equipment, vehicles, special tools, farm animals, and livestock related to self-support activities. This property shall be excluded if the total equity value of these resources does not exceed the limit set forth in §H(5)(c) of this regulation and the resource produces a net annual return of at least 6 percent of the equity. (c) $6,000 Equity Value Exclusion. A $6,000 equity value exclusion applies to the combined equity value of resources in §H(5)(a) and (b) of this regulation. The exclusion does not apply to each individual property. (d) Limitations on Equity Value Exclusion. (i) The full equity value of each property not producing a net annual return of 6 percent will be a countable resource. (ii) The combined equity value in excess of $6,000 of all properties producing an individual net annual return of 6 percent will be a countable resource. (6) Burial Funds. (a) In determining the resources of a person and the person's spouse, if any, there shall be excluded an amount up to $1,500 per person of funds specifically set aside for burial arrangements of the person or the person's spouse. (b) Interest earned on excluded burial funds and appreciation on the value of excluded burial arrangements shall be excluded from resources if left to accumulate and become a part of the burial fund.