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received by members for retroactive Social Security payments (see SECTION 16.7.11.1, RETROACTIVE SS PAYMENTS). Example 7 Michelle is a former SSI recipient and now receives Social Security Disability Income and a surviving child benefit. She is considered a Disabled Adult Child (DAC) by the Social Security Administration. She applies for Medicaid but does not know when she stopped receiving SSI. Instead of being determined eligible for Medicaid as a DAC with no premium or cost share, she is determined eligible for Waiver Medicaid as a Group B with a cost share, which she pays each month. When her previous receipt of SSI is discovered, Michelle is owed the money that she paid towards her cost share and must be reimbursed that amount. Michelle has nine months after the month of receipt in which the reimbursed amount will not be considered an asset. If she receives the reimbursement in January, any remaining amount from the reimbursement will be counted as an asset in November. 16.7.11.4 Retroactive VA Aid and Attendance Retroactive Aid and Attendance payments from the VA are an exempt asset through the month after the month of receipt. Example 8 Gloria receives $5000 in retroactive VA aid and attendance as a lump sum payment in May. The amount of that payment is disregarded through June 30. Any remaining funds as of July 1 are a countable asset. 16.7.12 Land Contract When a land contract is executed, the purchaser builds equity in the property through the payments he or she makes. The seller keeps legal title to the property until it is paid for. The seller's interest in the land contract is personal property, not real property. The seller's legal title to the property can be sold and converted to cash for support and maintenance. To determine the value of the seller's legal interest in the land contract: 1. Find the original sale price or the fair market value (as determined by a qualified real estate appraiser). Of these two amounts, choose the one which more accurately reflects the contract's true value on the date it was originated. 2. From this amount subtract: a. Payments which the purchaser has already made on the principal. Example 9 The fair market value of the land contract is $50,000. The purchaser has already paid $10,000 on the principal. $50,000 Fair Market Value -10,000 Already Paid _____________________ $40,000 Outstanding Balance b. Encumbrances on the contract (for example, a personal loan). c. The amount lost to a discount. Example 10 Company ABD purchases land contracts. They have offered to buy Mr. Graham’s land contract at a 10 percent discount. $40,000 Outstanding Balance - 4,000 10% _____________________ $36,000 Value of Mr. Graham’s Interest in the Land Contract