Page 404

Listed below are some of the types of assets commonly held by applicants or recipients. Calculate the net equity value by subtracting the legal debt, such as promissory notes, conditional sales contracts, deeds of trust, vendors liens or other similar legal papers from the fair market value. If a relative assumes payment on an asset and states that he has a claim against it, the relative must take a vendor s lien on the asset. If a debt is not secured by a legal document, the requirement to repay is subject to question and should be explored. To deduct the legal debt from the value there must be a requirement to repay. Automobiles and Other Vehicles Only certain vehicles, whether licensed or unlicensed, can be included in a household s resource determination. Countable vehicles are limited to recreational vehicles (unless used as the home), allterrain vehicles (ATVs) and other off-road vehicles. Industrial vehicles, i.e., heavy haulers, pulpwood trucks, etc., are countable resources unless used for income-producing purposes over 50 percent of the time, excluding temporary periods of unemployment, or the vehicle annually produces income consistent with its fair market value, even if used only on a seasonal basis. The equity value of these vehicles shall be applied toward the household s resources. Cash on Hand Cash on hand is an asset immediately available and must be considered as income or a resource. See below for making this distinction. Some examples include: cash resulting from the sale or disposal of an asset, down payments from the sale of personal property or real property other than the home, or the sale of oil rights, timber, equipment, or other assets. When the applicant or recipient says he has cash on his person, at home, or in another place not specified below, obtain his statement and signature to this effect for the case record. Cash on hand or available to the individual must be distinguished from annual, quarterly, monthly, or lump sum income. Resources are permitted to be retained within the maximum limit, while income must be considered in the budget. When cash is determined to be income, such as farm income which is received at one time during the year, the amount, when placed in the bank, may exceed the allowable resource limit. The money will be considered income for a period of one year from the date of receipt of the income. After the end of the year, any amount remaining becomes a resource.

Volume III | Chapter 5

Cash in Bank or Other Savings Institutions When the applicant or recipient says he has, or has had within the past year, or there are other clues that he has cash on hand or in a bank or other savings institution, request verification of the amount. He may use his bank statements for the year, if available, or any other document which will establish the amount currently on hand and in his possession during the year. If other documents are not available, the worker will use the MDHS-EA-912, Request for Information - Bank, Saving and Loan, Other Financial Institution, to verify cash in a bank or 5100 MISSISSIPPI [ RESOURCES: RESOURCES TO BE INCLUDED ]

Revised 04 - 01 - 10