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Aged, Blind and Disabled Manual Policy Manual Number: 110.045 Section: Financial Eligibility Requirements Chapter: ABD Treatment of Resources: Ownership, Equity Value & Accessibility April 15, 2015 Division of TennCare 2 4. Fair Market Value (FMV) The FMV of a resource is determined based on the type of resource. For example, bank accounts are based on the amount of money in the account. Certificates of deposit and other time deposits are based on the amount of money that can be withdrawn after penalties for early withdrawal. Car values are based on National Automobile Dealers Association (NADA) values or statements from knowledgeable sources, such as area car dealers. Real estate is based on Total Market Appraisal, which can be found at the Tenneessee Property Assessment Data listing. Nine counties do not provide property information through the Comptroller’s listing. However, links to the property information for those nine counties can be found on the Comptroller’s web-site. Other types of resources are valued based on statements from knowledgeable sources or other means that are reasonable and appropriate to the type of resource being valued. Fair market value is an estimate of the value of an asset, if sold at the prevailing price at the time it was actually transferred. Value is based on criteria you use in appraising the value of assets for the purpose of determining Medicaid eligibility. 5. Equity Value The equity value of a resource is the FMV minus the debt or amount owed on the resource. (Equity = FMV – amount owed). Only the equity value of an accessible resource is counted toward the resource limit, other than for vehicles. 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. 6. Resource Accessibility & Availability Resources are considered available either when actually available to the individual or when the individual has a legal or equitable interest in the property or asset, and has the legal or equitable ability to access funds or convert non-cash property into cash. If the individual has the legal or equitable ability to access his or her funds, the resource is considered available regardless of whether the individual has the practical ability to access the resource or convert non-cash property into cash. The individual’s incompetence, whether presumed or actual, does not bar the person’s legal authority to withdraw his or her liquid resources in the situation where a conservator, guardian or someone acting on the person’s behalf has not been legally appointed. The resources belonging to an individual whose conservator, guardian, or legally appointed representative does not cooperate with TennCare during the facilitation of accessing resources, shall be considered inaccessible, assuming the methods to access the resources have been fully exhausted.