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West Virginia Income Maintenance Manual Chapter 5

West Virginia Income Maintenance Manual Page 17 Chapter 5 Assets

5.3.5.B Exceptions for Sale of an Excluded Asset For SSI Medicaid Groups: The proceeds from the sale of an excluded home are excluded if they are used or obligated to purchase and occupy another home by the last day of the third full month following the month of receipt. Example: If the proceeds from the sale are received January 13, they must be used or obligated by April 30. The proceeds from the sale of a home are the net payments received by the seller, after satisfaction of all encumbrances and sale expenses. • Encumbrances include, but are not limited to, mortgages, liens, and any other enforceable claims against the home or seller that must be, and are satisfied to, finalize the sale. • Sale expenses are all expenses that must be paid by the seller in connection with the sale. They include, but are not limited to: o Broker fees; o Broker commissions; o Legal fees; o Mortgage-related fees, such as "points" paid by the seller; o Inspection and settlement fees; or o Transfer taxes and other accrued taxes paid by the seller. Treatment of the proceeds depends on whether or not the client intends to purchase another home.

Client Intends to Purchase Another Home When the client sells his excluded home and states that he intends to purchase another home, the exclusion applies. The Worker must record that the client has stated this intent and set an alert for the third month following the month in which the client received the proceeds from the sale to verify that the proceeds are obligated or used to purchase another home. The client’s statement of intent is sufficient to qualify for the exclusion, unless questionable. NOTE: Interest earned on the proceeds from the sale is not excluded.