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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 39 • Payments must be made in equal amounts during the term of the loan with no deferral payment and no balloon payments; and

• The promissory note, loan or mortgage must prohibit the cancellation of the balance upon the death of the lender.

The actuarial standards used are those determined by the SSA. See the “SSA Period Life Expectancy Table” See SSA Period Life Expectancy Table .

If the above criteria are not met, the purchase of the promissory note or loan must be treated as a transfer of assets. The amount used to calculate a penalty will be the outstanding balance of the loan due as the date of application for TennCare Medicaid. Promissory Notes: Other Uses

Promissory notes that are made for purposes other than personal use are treated according to their use. Promissory notes may be made for the following purposes:

• Burial; • Business or Self-Employment; and • Proceeds from the Sale of a Home.

Prorated as Income Resource Characteristic A resource that has been prorated as income is an excluded resource.

Example: Farmer Jones sells his crop in September for $12,000. The money from the sale is intended to support his family for a year. The $12,000 is prorated as income, $1,000 a month. The $12,000 is excluded as a resource.

Real Property Resource Type Real property is any building and/or land, improved or unimproved, including recreational, residential and/or commercial property.