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To determine equity value, subtract all legal encumbrances from the FMV. Only debts (amounts owed) that are secured by liens or other legal encumbrances against the resource can be subtracted from the FMV when determining equity. COMMINGLING EXCLUDED AND COUNTABLE RESOURCES: If excluded and countable resources are commingled (mixed) in the same account, the specific fund sources must be identified to determine if the excluded funds remain excluded once commingled. There must be clear records (financial institution or owner) identifying and tracing each source for the excluded funds to remain excluded. Withdrawals from a commingled account are considered to be from non-excluded funds first, and then from excluded funds after all non-excluded funds are exhausted. FUNDS PRORATED AS INCOME: Funds that are prorated as income remain excluded from resources for the period they are prorated as income (even if funds are commingled). Effective Date: 9/1/2025