29.08 Excluded resources

This subsection specifies the resources whose value is excluded in determining MABD eligibility. Home/real property Home and contiguous land (i) Definition. Home means the property in which an individual resides and has an ownership interest and which serves as the individual’s principal place of residence. This property includes the shelter Financial Methodologies Part 5 – Page 21 (Sec.29.00, Sub.29.08) in which the individual resides, the land on which the shelter is located, related outbuildings, and surrounding property not separated from the home by intervening property owned by others. Public rights of way, such as roads that run through the surrounding property and separate it from the home, will not affect the exemption of the property. The home includes contiguous land and any other nonresidential buildings located on the contiguous land that are related to the home. (ii) Exclusion Except when determining an individual’s eligibility for Medicaid coverage of long-term care services and supports, a home is excluded as a resource, regardless of its value. For Medicaid coverage of long-term care services and supports, the home is considered a resource when the equity in the home is substantial.20 See § 29.09(d)(6) for information on exceptions to the application of the substantial home equity limit. The home may also be considered as a resource when determining whether the home has been transferred and should be subject to a penalty period (see § 25.00) The home exclusion applies even if the owner is making an effort to sell the home. The home exclusion also applies if the owner is absent from the home due to institutionalization, provided they have not placed the home in a revocable trust, and any one of the following three conditions is satisfied: (I) The owner intends to return to the home even if the likelihood of return is apparently nil. (II) The owner has a spouse or dependent relative residing in the home. Dependent relative in this context applies to: (i) Any kind of dependency (medical, financial, etc.); and (ii) A relationship to the owner that is one of the following: child, step-child, or grandchild; parent, step-parent, or grandparent; aunt, uncle, niece, or nephew; brother or sister, step-brother or step-sister, half brother or half sister; cousin; or in- law. (III) The owner has a medical condition that prevented them from residing in the home before institutionalization. Unless one of the exceptions listed in (D) applies, the home becomes a countable resource when the owner moves out of the home without the intent to return, because it is no longer their principal place of residence. Temporary absences, such as for hospitalization or convalescence with a relative, do not affect the determination of the owner’s principal place of residence. Proceeds from the sale of an excluded home (i) Proceeds from the sale of a home is excluded to the extent that the owner intends to use the proceeds and, in fact, uses or obligates them to purchase or construct another home within three 20 For the current substantial home equity limit, see Vermont’s Eligibility Standards for Healthcare Programs on the Department of Vermont Health Access website. Financial Methodologies Part 5 – Page 22 (Sec.29.00, Sub.29.08) months of the date the proceeds are received. (ii) Use of proceeds from the sale of a home to pay costs of another home will be excluded only if the other costs are paid within three months of the sale of the home. Such costs are limited to the down payment, settlement costs, loan processing fees and points, moving expenses, necessary repairs to or replacements of the new home’s structure or fixtures (e.g., roof, furnace, plumbing, built-in appliances) identified and documented prior to occupancy, and mortgage payments for the new home. (iii) The value of a promissory note or similar installment sales contract constitutes a “proceed.” Other proceeds consist of the down payment and the portion of any installment amount constituting payment against the principal. These are also excluded if used within 3 months to make payment on the replacement home. (iv) When all of the proceeds are not timely reinvested as specified above, the portion of the proceeds retained by the owner are combined with the value of the promissory note or installment sales contract and counted as a resource beginning with the month following the month the note or contract is executed. If the entire proceeds are fully reinvested in a replacement home at a later date, the value of the note or contract and reinvested proceeds are excluded beginning with the month after the month in which they are reinvested, but any proceeds not reinvested as specified above remain a countable resource until fully reinvested. Real property up-for-sale (i) Real property is excluded from being a countable resource as long as the owner verifies that they are making reasonable efforts to sell it. Reasonable efforts to sell property means taking all necessary steps to sell it for fair market value in the geographic area covered by the media serving the area in which property is located, unless the owner is prevented by circumstances beyond their control from taking these steps. (ii) The steps considered necessary to sell the property depend on the method of sale. An owner may choose to list the real property with a real estate agent or undertake to sell it themselves. (iii) If the owner chooses to list the property with a real estate agency, they must take the necessary step of listing it and cooperating with the real estate agent’s efforts to sell it. (iv) If the owner chooses to sell the property without an agent, they must take all of the following necessary steps: Advertise the property in at least one of the appropriate local media continuously; Place a “For Sale” sign on the property continuously, unless prohibited by zoning regulations; Conduct open houses or otherwise show the property to prospective buyers; and Attempt any other appropriate methods of sale. (v) If any prospective buyer makes a reasonable offer for the property, the owner must accept it or demonstrate why it was not a reasonable offer. Any offer of at least two-thirds of the most recent estimate of the property’s fair market value is considered a reasonable offer. Financial Methodologies Part 5 – Page 23 (Sec.29.00, Sub.29.08) (vi) Fair market value means: A certified appraisal; or An amount equal to the price of the property on the open market in its locality at the time of the transfer or contract for sale, if earlier. Home equity conversion plans (i) Definition. Home equity conversion plans are financial instruments used to secure loans with real property as collateral. Home equity conversion plans include reverse mortgages, reverse annuity mortgages, sale-leaseback arrangements, time-sale agreements, and deferred payment loans. (ii) Exclusion as a resource in month received. In the month of receipt, funds an owner of the real property receives from any home equity conversion arrangements on their real property are excluded as a resource. Any funds received from a home equity conversion plan that are retained after the month of receipt are counted as a resource beginning the month after receipt. For information on the treatment of the funds for purposes of income eligibility, see § 29.13(b)(30). Jointly-owned real property (i) Exclusion due to joint owner’s refusal to sell An owner’s interest in jointly-owned real property is excluded as a resource as long as: (I) At least one of the other joint owners refuses to sell the property; and (II) The joint ownership was created more than 60 months before the date of the MABD application. The addition of a new joint owner (or joint owners) to a property is considered as the creation of a new joint ownership. The new joint ownership will be evaluated as a countable resource under § 29.09(d)(3) if the addition of the new joint owner was made within 60 months of the date of the MABD application. (ii) Exclusion due to undue hardship. An owner’s interest in jointly-owned real property is excluded as a resource if the sale of the property would cause the other joint owner (or owners) undue hardship due to loss of housing. Undue hardship would result when: The property serves as the principal place of residence for one or more of the other joint owners; Sale of the property would result in loss of that residence; and No other housing would be readily available for the displaced other owner. Life estates (i) Treatment of life estate interest created on or after July 1, 2002. For a life estate ownership in real property created on or after July 1, 2002: The value of the life estate is excluded as a resource when the life estate owner does not retain the power to sell or mortgage the real property. For purposes of eligibility for Medicaid coverage Financial Methodologies Part 5 – Page 24 (Sec.29.00, Sub.29.08) of long term care services and supports, however, the life estate may be considered as a resource when determining whether it has been transferred and should be subject to a penalty period (see § 25.00). When the life estate owner retains the power to sell or mortgage the real property, including any remainder interest, the value of the life estate is excluded only if the life estate is an interest in the life estate owner’s home (§ 29.08(a)(1)). Otherwise, the value of the life estate is counted. For this purpose, the value of the life estate includes the value of the remainder interest. When an individual transfers their home and retains a life estate with the power to sell or mortgage the property, the transfer is not subject to a transfer penalty analysis under § 25.00. In this situation, no transfer has occurred because the individual’s ownership interest in the home has not been reduced or eliminated. (ii) Treatment of life estate interest created before July 1, 2002. For a life estate ownership created before July 1, 2002: When the life estate owner retains the power to sell the real property, including any remainder interest, the value of the life estate is excluded only if the life estate is excludable on another basis, such as because it is real property producing significant income. Otherwise, the value of the life estate is counted. For this purpose, the value of the life estate includes the value of the remainder interest. The life estate ownership is excluded as a resource when the life estate owner does not retain the power to sell the real property. Income-producing real property (i) Non-business real property. Non-business real property is excluded as a resource if the property produces significant income to the owner. Real property is considered to produce significant income if it generates at least 6 percent of its fair market value in net annual income after allowable expenses related to producing the income are deducted. (ii) Real property used in a trade or business. Real property is excluded as a resource if the real property is essential to the owner’s self-support and used by the owner in a trade or business. For purposes of this exclusion, the property must be in current use in the type of activity that qualifies it as essential. Goods for home consumption. Non-business real property is excluded as a resource of the owner when used by the owner to produce goods for only home consumption (e.g., a garden plot used to raise vegetables to be eaten at home or a wood lot used to provide fuel to heat the home). When real property is used to produce goods for both home consumption and income production, only the part used to produce goods for home consumption is excluded. The part of the property used for income production is evaluated for exclusion under (7) above. Insurance Exclusion of life insurance (i) Whole life insurance If the combined face values of the whole life insurance policies owned by any one member of the Financial Methodologies Part 5 – Page 25 (Sec.29.00, Sub.29.08) financial responsibility group do not exceed $1500, the cash surrender values of the policies are excluded. If the combined face values exceed $1500, the cash surrender values, excluding any amounts up to $1500, and all dividend additions are a countable resource. (ii) Term life insurance. Regardless of its face value, a term life insurance policy is not a countable resource. Long-term care insurance partnership (i) Definition: Qualified State Long-Term Care Insurance Partnership. A state plan amendment that provides for the disregard of any assets or resources in an amount equal to the insurance benefit payments that are made under a long-term care insurance policy (including a certificate issued under a group insurance contract), but only if: The policy covers an insured who, at the time coverage under the policy first becomes effective, is a resident of such State or of a State that maintains a Qualified Long-Term Care Insurance Partnership; The policy is a qualified long-term care insurance contract within the meaning of § 7702B(b) of the Code; The policy provides some level of inflation protection as set forth in regulations promulgated by the Department of Financial Regulations (DFR); The policy satisfies any requirements of State or other applicable law that apply to a long-term care insurance policy as certified by the DFR; and The issuer of the policy reports: (I) To the Secretary of HHS such information or data as the Secretary may require; and (II) To the State, the information or data reported to the Secretary of HHS (if any), the information or data required under the minimum reporting requirements developed under § 2(c)(1) of the State Long-Term Care Partnership Act of 2005, and such additional information or data as the State may require. (ii) Exclusion Subject to approval by CMS, assets or resources in an amount equal to the insurance benefit payments that are made to or on behalf of an individual who is a beneficiary under a qualified State long-term care insurance partnership policy are excluded. This section is further contingent on the passage of changes to 33 VSA § 1908a necessary to bring the Vermont statute on Long-Term Care Partnership Insurance into conformance with the requirements of § 6021 of the federal Deficit Reduction Act of 2005. Burial Funds Exclusion For any person whose income and resources are considered in determining MABD eligibility, up to $10,000 of burial funds are excluded, as long as the person shows that the funds are designated for burial expenses through the title to the funds or by a sworn statement provided. The funds must be Financial Methodologies Part 5 – Page 26 (Sec.29.00, Sub.29.08) separately identifiable and not commingled with other funds. Burial funds may be excluded as of the first day of the month in which the person whose income and resources are considered in determining MABD eligibility established it. Interest and appreciation accrued on burial funds are excluded if the funds have been left to accumulate. The value of certain burial spaces, if not fully paid, may also be excluded under the allowable limit of $10,000 for each person whose income and resources are considered in determining MABD eligibility. Such spaces must be held for the burial of a member of the individual’s immediate family. For this purpose, the immediate family includes the individual’s spouse, children, brothers, sisters, and parents. Irrevocable burial trusts established prior to July 1, 2002 and funded in excess of $10,000 are excluded up to the value of the trust as of June 30, 2002. Other income-producing resources Annuities (i) An annuity is excluded as a resource of an individual requesting MABD or of their spouse if the annuity is in its pay-out phase and meets all of the following conditions: Has no beneficiary (or payee) other than the individual requesting MABD or their spouse; Provides for payments to the beneficiary in equal intervals and equal amounts; Does not exceed the life expectancy of the beneficiary as determined by using the actuarial life table published by the Office of the Chief Actuary of the SSA (http://socialsecurity.gov/OACT/STATS/table4c6.html); Returns to the beneficiary at least the amount used to establish the annuity contract and any additional payments plus any earnings, as specified in the contract; and Except as provided in (ii) below, does not pay anyone else, as residual beneficiary, in the event the beneficiary dies before the payment period ends. (ii) An annuity will also be considered to meet the requirements of (A) through (E) of (i) above if the individual or their spouse, as the owner of the annuity, elects to designate Vermont Medicaid as the primary residual beneficiary up to the amount of Medicaid payments made on behalf of the individual (or their spouse), and names a contingent residual beneficiary other than the individual or their spouse to receive any surplus after Vermont Medicaid is paid. Promissory notes and other income-producing resources (i) A promissory note or similar resource that produces income is excluded as a resource of an individual requesting MABD eligibility or of their spouse if: It meets the requirements in paragraph (1)(i)(A) through (E) above; or The owner owned a nonnegotiable or nonassignable promissory note executed before September 1, 2005 and they can expect to receive the full fair market value of the resource within their expected lifetime, as determined by using the actuarial life table published by the Financial Methodologies Part 5 – Page 27 (Sec.29.00, Sub.29.08) Office of the Chief Actuary of the SSA (http://socialsecurity.gov/OACT/STATS/table4c6.html). (ii) All other promissory notes and similar resources that produce income are evaluated for whether they are a countable resource as specified in § 29.09(d)(5) or, for purposes of Medicaid coverage of long- term care services and supports, subject to a transfer penalty as specified in § 25.00. Excluded trusts In general (i) A trust is excluded as a resource if the member of the financial responsibility group is the grantor or grantee of the trust and cannot revoke the trust or receive trust property, whether or not the trustee exercises their full discretion. Trust property is also excluded as a resource when the grantor is a member of the financial responsibility group and establishes a trust by will (often referred to as a “testamentary trust”). (ii) The following trust property is excluded as a resource when either the grantor or the grantee is a member of the financial responsibility group: Trust property in a trust established prior to April 7, 1986, for the sole benefit of a person who is developmentally disabled residing in an ICF-DD. Trust property in a trust for which the grantee is a disabled child under the decision in Sullivan v. Zebley, 493 U. S. 521 (1990). Trust property or any portion of trust property that cannot be made available to the member of the financial responsibility group, either through full exercise of the trustee’s discretion under the terms of the trust or through revocation of the trust by a member of the financial responsibility group. Trust property in a trust established by persons other than the individual or the individual’s spouse (known as a third-party trust) unless the terms of the trust permit the individual (or their spouse) to revoke the trust or to have access to it without trustee intervention. Trust property in an irrevocable trust, including a home placed in an irrevocable trust by an institutionalized individual who intends to return to it, from which no payment under any circumstances could be made to the individual. A special needs trust that contains the assets of a disabled individual under the age of 65, and meets all of the criteria below: (I) (i) For a trust established on or after December 13, 2016, was established through the actions of the disabled individual, a parent, grandparent or legal guardian of the disabled individual, or by a court; or (ii) For a trust established before December 13, 2016, was established through the actions of a parent, grandparent, or legal guardian of the disabled individual, or by a court; (II) Was established for the sole benefit of the disabled individual which means that no person or entity except the disabled individual can benefit from the trust in any way, until Financial Methodologies Part 5 – Page 28 (Sec.29.00, Sub.29.08) after the death of the disabled individual and then not before Vermont Medicaid receives sums owed under the payback provision under (III) below; and (III) Includes a payback provision which requires that, upon the death of the disabled individual, any amounts remaining in the trust will first be paid to Vermont Medicaid in an amount equal to the total Medicaid payments made on behalf of the disabled individual. A pooled trust that contains the assets of a disabled individual, and meets all of the criteria below: (I) Was established and administered by a non-profit association; (II) Maintains a separate account for the disabled individual, but assets are pooled for investing and management purposes; (III) The separate account was established for the sole benefit of the disabled individual; (IV) The account was established through the actions of the disabled individual, their parent, grandparent or legal guardian, or by a court; and (V) The trust contains a pay-back provision which requires that to the extent any amounts in the separate account for the disabled individual upon their death are not retained by the trust, such amounts will first be paid to Vermont Medicaid in an amount equal to the total Medicaid payments made on behalf of the disabled individual. (VI) Any asset of the disabled individual that is added to the trust after the disabled individual reaches the age of 65 may be subject to transfer penalty (see § 25.00) for purposes of the disabled individual’s eligibility for Medicaid coverage of long-term care services and supports. (iii) In the case of a trust with more than one grantor, these exclusions apply only to that portion of the trust attributable to the income or resources of a member of the financial responsibility group. In the case of a trust with more than one grantee, the exclusions apply only to that portion of the trust available for the benefit of a member of the financial responsibility group. Trusts excluded due to hardship (i) Trust property that has not been distributed may be excluded if counting it as a resource would cause undue hardship to a grantor or grantee who is a member of the financial responsibility group. (ii) Undue hardship includes situations in which a member of the financial responsibility group or someone in the member’s immediate family would be forced to go without life-sustaining services because the trust property could not be made available to pay for the services. For this purpose, the immediate family includes the member’s spouse, children, brothers, sisters, and parents. (iii) The following situations also would cause undue hardship: Funds can be made available for medical care only if trust property is sold, and this property is the sole source of income for the member or someone in the member’s immediate family; and Funds can be made available for medical care only if income-producing trust property is sold and, as a result of this sale, the member or someone in the member’s immediate family would Financial Methodologies Part 5 – Page 29 (Sec.29.00, Sub.29.08) qualify for SSI, Reach Up, AABD, General Assistance, 3SquaresVT, or another public assistance program requiring a comparable showing of financial need. (iv) Undue hardship does not exist when application of the trust regulations does not cause risk of serious deprivation to the member of someone in the member’s immediate family. (v) An individual claiming undue hardship must submit a written request and any supporting documentation. Required documentation from the individual can include, but is not limited to, the following: A statement from the individual’s attorney, if one was involved; Verification of medical insurance coverage and statements from medical providers relative to usage not covered by the insurance; or A statement from the trustee of the trust. (vi) When application of trust provisions are waived because they would cause the individual undue hardship, only amounts actually distributed from the trust and held for more than a month are counted as a resource. (vii) Request for consideration of undue hardship does not limit an individual’s right to appeal denial of eligibility for any reason, including the determination of undue hardship. Early withdrawal and surrender penalties Early withdrawal penalties and surrender fees assessed by a financial institution are excluded to the extent that they reduce the value of a countable resource that has been liquidated. Examples of resources to which this exclusion applies are retirement funds, annuities, bonds, and certificates of deposit. Income tax withholding and tax penalties for early withdrawal are not excluded. Jointly-owned accounts. A jointly-owned account in a financial institution is excluded as a resource only if the owner rebuts the presumption of availability by: Submitting a statement, along with a corroborating statement (or statements) from the other joint owner (or owners) of the account, regarding who owns the funds in the joint account, why there is a joint account, who has made deposits to and withdrawals from the account, and how withdrawals have been spent; Submitting account records showing deposits, withdrawals, and interest, if any, in the months for which ownership of funds is at issue; and Taking one of the following two actions: (i) If the member of the financial responsibility group owns none of the funds in the account, correcting the account title to show that the member is no longer a co-owner of the account; or (ii) If the member owns only a portion of the funds in the account, separating the funds owned by other Financial Methodologies Part 5 – Page 30 (Sec.29.00, Sub.29.08) account owners from the member’s funds and correcting the account title on the member’s funds to show they are solely owned by the member. Fiduciary for a joint fiduciary account21 Definition: Joint fiduciary account. A deposit in a financial institution in the name of an owner naming one or more fiduciaries. The owner makes a clear statement about how the money can be used, and the fiduciary is required to follow those instructions and keep track of how the money is spent. Exclusion. When an individual owns a joint fiduciary account, it is counted as a resource. When an individual is designated a fiduciary of a joint fiduciary account, the joint fiduciary account is an excluded resource for the fiduciary. Other excluded resources Household goods, personal effects and other personal property (i) Except as provided in (ii), home furnishings, apparel, personal effects, and household goods are excluded as resources. Tools, equipment, uniforms and other nonliquid property required by the owner’s employer or essential to the owner’s self-support are also excluded as resources. (ii) Items an owner acquires or holds because of their value or as an investment are not excluded. Automobiles (i) All automobiles used to provide necessary transportation are excluded as resources. For purposes of this exclusion, automobiles include passenger cars, trucks, boats, and snowmobiles. (ii) Automobiles an owner acquires or holds because of their value, as an investment or for recreational purposes are not excluded. Independent living contracts (i) Definitions Contracts for medical care, assistive technology devices, and home modifications. Any written agreement, contract, or accord (including modifications) for reasonable and necessary medical care, assistive technology devices, or home modifications not covered by Medicare, private insurance, or Medicaid and determined by AHS to be needed to keep an individual at home and out of a skilled nursing facility. Medical care. Care not covered under AHS’s Choices for Care program, including but not limited to, general supervision when required by the cognitive impairment of the individual and/or unstable medical condition that requires monitoring of the individual. Assistive technology devices. Any item, piece of equipment or product system whether acquired commercially off the shelf, modified, or customized, to increase, maintain, or improve the 21 8 VSA § 14212 Financial Methodologies Part 5 – Page 31 (Sec.29.00, Sub.29.08) individual’s functional capabilities. Home modifications. Physical adaptations to the individual’s home that ensure the health and welfare of the individual, or that improve the individual’s ability to perform activities of daily living or instrumental activities of daily living. (ii) Exclusion. Resources set aside under a contract or contracts for medical care, assistive technology devices, or home modifications are considered to be available resources unless all of the following criteria are met: The contract is in writing and signed before any services are provided; The funds, not to exceed a total of $30,000, are held in a separate bank account from other resources in the sole name of the individual applying for MABD; Any amounts due are paid after the services are rendered; The payments for: (I) Medical care or assistive technology services do not exceed $500 per month; and (II) Home modifications do not exceed a one-time expenditure of $7,500; The payments to nonlicensed individuals or providers do not exceed the fair market value of such services being provided by similarly situated and trained nonlicensed individuals, not to exceed the amount paid under AHS’s Choices for Care program. Periodic accountings, as requested by AHS, must be provided specifying the amount of each expenditure, who was paid, the service given, and the number of hours and dates of service covered; The individual has the power to modify, revoke or terminate the contract for care; The contract ceases upon the death of the individual. It also ceases upon the individual’s admission to an institution for long term care for more than 45 days if not eligible for the home upkeep deduction under § 24.04(d), or 6 months if eligible for the deduction. In addition, revocation or termination of the contract ceases the agreement. Upon cessation of the contract as specified above, any remaining balance of funds shall be treated as: (I) An asset of the individual’s estate, if the individual is deceased; (II) An available resource that may not be converted to an excluded resource and must be applied at the Medicaid pay rate toward long term care services and supports if the individual is admitted to an institution for long-term care for more than 6 months. In cases where the individual dies before the resource is fully expended, the remainder shall become an asset of the individual’s estate; or (III) An excluded resource, if the individual revokes or terminates the contract and continues to receive services under AHS’s Choices for Care program. Cash/liquid resources Financial Methodologies Part 5 – Page 32 (Sec.29.00, Sub.29.08) (i) Income is excluded as a resource in the month of receipt, such as an automatic deposit of a social security check into a checking account. (ii) Liquid resources used in the operation of the owner’s trade or business as property essential to self- support are excluded. Exclusion of retirement funds (i) Any retirement fund owned by a member of the financial responsibility group is excluded when: The member must terminate employment in order to obtain any payment from the fund; The member is not eligible for periodic payments from the fund and does not have the option of withdrawing a lump sum from the fund; or The member is drawing on the retirement fund at a rate consistent with their life expectancy, as specified in § 25.03(b). (ii) If the member is eligible for periodic payments or a lump sum, the member must choose the periodic payments. If the member receives a denial on a claim for periodic retirement benefits, but can withdraw the funds in a lump sum, the lump sum value is counted in the resources determination for the month following that in which the member receives the denial notice. (iii) When a member of the financial responsibility group is seeking Medicaid coverage of long-term care services and supports under MABD and has a spouse, any retirement fund held by the member in an individual retirement account (IRA) or in a work-related pension plan (including Keogh plans) as defined by the Code, does not require a change in the title of ownership in order for the fund to be treated as an excluded resource for the benefit of the spouse. Tax refunds. Tax refunds on real property, income, and food are excluded as resources. Student benefits. Any portion of any grant, scholarship, or fellowship used to pay fees, tuition, or other expenses necessary to securing an education is excluded. Portions used to defray costs of food or shelter must be counted. Savings from excluded income. Savings from excluded income and resources are excluded as resources. This includes, but is not limited to, the following: (i) Liquid resources, including interest earned by the resources accumulated from earnings by a person working with disabilities (see § 8.05(d)) on or after January 1, 2000, and kept in a separate bank account from other liquid resources, unless no bank within a reasonable distance from the person’s residence or place of work permits the person working with disabilities to establish a separate account without charging fees; and (ii) Nonliquid resources purchased by a person working with disabilities on or after January 1, 2000, with savings from earnings or with a combination of savings from earnings and other excluded income or resources. Resources excluded by federal law. The following are excluded by federal law from both income and resources: Financial Methodologies Part 5 – Page 33 (Sec.29.00, Sub.29.08) (i) The value of meals and food commodities distributed under the National School Lunch Act and the Child Nutrition Act. (ii) The value of 3SquaresVT or 3SquaresVT cash-out checks. (iii) The value of food or vouchers received through the WIC Program. (iv) The value of food or meals received under the Older Americans Act. (v) Compensation or remuneration received for volunteer work in ACTION programs including foster grandparents, RSVP, SCORE, ACV, ACE, VISTA, Senior Companion Program and UYA. (vi) The value of assistance received under the U. S. Housing Act, U. S. Housing Authorization Act and the Housing and Urban Development Act. (vii) The value of relocation assistance to displaced persons under the Uniform Relocation and Real Property Acquisition Policies Act. (viii) Per capita distributions to certain Indian Tribes and receipts from lands held in trust for certain Indian Tribes. (ix) Payments received under the Alaskan Native Claims Settlement Act. (x) Grants or loans received for educational purposes under any U. S. Department of Education program. (xi) Any assistance received under the Emergency Energy Conservation or Energy Crisis Program. (xii) Any assistance received under the Low-Income Home Energy Assistance Act, either in cash or through vendor payments. (xiii) Compensation paid to Americans of Japanese or Aleut ancestry as restitution for their incarceration during World War II. (xiv) Agent Orange Settlement payments. (xv) German reparations to concentration camp survivors, slave laborers, partisans, and other victims of the Holocaust. Settlement payments to victims of Nazi persecution or their legal heirs resulting from the confiscation of assets during World War II. (xvi) War reparations paid under the Austrian government’s pension system. (xvii) Radiation Exposure Compensation Trust Fund payments. (xviii) Assistance received under the Disaster Relief and Emergency Assistance Act or other assistance provided under a Federal statute because of a catastrophe which is declared to be a major disaster by the President of the United States. Comparable assistance received from a State or local government, or from a disaster assistance organization is also excluded. Interest earned on the assistance is also excluded. (xix) Netherlands’ Act on Benefits for Victims of Persecution 1940-1945 payments. Financial Methodologies Part 5 – Page 34 (Sec.29.00, Sub.29.08) (xx) Any account, including interest or other earnings on the account, established and maintained in accordance with § 1631(a)(2)(F) of the Act. These accounts are established with retroactive SSI payments made to a child under age 18 and used in ways specified in the Act. The exclusion continues after the child has reached age 18. (xxi) Earnings deposited in a special savings account under the Tangible Assets project managed by the Central Vermont Community Action Council and authorized by PRWORA. (xxii) Payments as the result of a settlement in the case of Susan Walker v. Bayer Corporation, et al. made to hemophiliacs who contracted the HIV virus from contaminated blood products. (xxiii) Any resource of a blind or disabled individual that is necessary for them to carry out their approved Plan for Achieving Self-Support (PASS). The plan must be approved by the SSA. (xxiv) An account established under the Achieving a Better Life Experience Act (ABLE Act), as permitted by that Act.22 Exclusions for limited periods. The following resources are excluded for specific periods: (i) Retroactive Social Security and SSI/AABD. Retroactive payments of SSI, the AABD supplement to SSI, or Social Security benefits for nine months beginning with the month after the month of receipt. These payments are also excluded as resources during the month of receipt. (ii) Funds for replacing excluded resources. Cash and interest earned on that cash received from any source, including casualty insurance, for the purpose of repairing or replacing an excluded resource that is lost, stolen, or damaged, if used to replace or repair that resource. The exclusion is allowed for nine months from the month of receipt. An extension of an additional nine months can be granted for good cause. (iii) Earned income tax credit. State and federal earned income tax credit refunds and advance payments for nine months beginning with the month after the month of receipt. (iv) Medical or Social Services payments. Cash received for medical or social services for the calendar month following the month of receipt. In the second month following the month of receipt, it is counted as a resource if it has been retained. (v) Victim’s compensation payments. State-administered victims’ compensation payments for nine months after the month of receipt. (vi) Relocation payments. State and local government relocation payments for nine months after the month of receipt. (vii) Expenses from last illness and burial. Payments, gifts, and inheritances occasioned by the death of another person provided that they are spent on costs resulting from the last illness and burial of the deceased by the end of the calendar month following the month of receipt. 22 Stephen Beck, Jr., ABLE Act of 2014. Financial Methodologies Part 5 – Page 35 (Sec.29.00, Sub.29.09) Exclusion of U. S. savings bonds (i) A U. S. savings bond is excluded as a resource during its minimum retention period if the owner of the savings bond requested a hardship waiver based on financial need due to medical expenses and received a denial from the United States Department of the Treasury, Bureau of Public Debt, Accrual Services Division in Parkersburg, P. O. Box 1328, Parkersburg, West Virginia 26106-1328. (ii) Upon verification of a denial of a hardship waiver, as described above, a U. S. savings bond is considered an available resource of the owner following the expiration of the minimum retention period. Once the minimum retention period expires, the denial of a hardship waiver is not a basis for exclusion of new bond purchases or other excluded assets purchased with the proceeds. (iii) A U. S. savings bond purchased before June 15, 2004, that has its minimum retention period expire after that date, continues to be an excluded resource if it is not redeemed, exchanged, surrendered, reissued, used to purchase or fund other excluded assets, or otherwise becomes available. Home-based long-term care disregard. An additional resource disregard of $3,000 to the standard $2,000 resource disregard is allowed for an aged or disabled individual without a spouse who resides in and has an ownership interest in their principal place of residence and chooses Medicaid coverage of long-term care services and supports under MABD to be provided in their residence provided all other eligibility criteria are met. This additional resource disregard remains available until the individual begins receiving Medicaid coverage of long term care services and supports under MABD in an institution or in a residential care home that provides enhanced residential care services. Thereafter, if the individual meets the requirements for a home upkeep deduction (see § 24.04(d)), they are eligible to continue this resource disregard for up to 6 months. Burial spaces. The value of fully paid burial spaces for the individual, the individual’s spouse or any member of the individual’s immediate family is excluded as a resource. For this purpose, the immediate family means the individual’s children, brothers, sisters, parents and the spouses of those individuals. State Tax Credit. Any refundable credit against taxes made pursuant to Vermont’s child tax credit23 or pursuant to a similar tax credit enacted by the State and directed by state law to not be considered as countable resources in determining eligibility for benefit programs is excluded as a resource. Workforce Recruitment & Retention Program. Any wages that are made pursuant to Vermont’s Premium Pay for Workforce Recruitment and Retention Program enacted in Act 83 of 2021 or a similar workforce recruitment and retention program enacted in Vermont and directed by state law to not be considered as countable resources in determining eligibility for benefit programs are excluded as resources.