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West Virginia Income Maintenance Manual Chapter 5
West Virginia Income Maintenance Manual Page 39 Chapter 5 Assets
Land Sale Contract Example 1: Mr. Birch sold property with a land sale contract to Mr. Pine. Mr. Birch applies for SSI-related Medicaid and the property is not considered his asset because he has a legal contract in effect. Land Sale Contract Example 2: Same situation as above, except Mr. Pine defaulted on the contract when he failed to make three payments by the terms of the contract. The property is now considered an asset for Mr. Birch because there is no legal contract in effect. 5.5.27 LIFE INSURANCE (CASH SURRENDER VALUE) SSI Medicaid Groups: If the face value of all life insurance policies for one individual totals $1,500 or less, the cash surrender values are not counted as an asset. If the face value of all life insurance policies for an individual is in excess of $1,500, the cash surrender values are counted as an asset. The life insurance policy must be owned by the client or by a person whose assets are deemed to him to be counted. If the consent of another individual is needed to surrender a policy for its full cash surrender value, and the consent cannot be obtained, the policy is not an asset. Assignment of a life insurance policy to another individual means consent of that individual is required before it can be cashed. During any life insurance right-to-cancel period or “free look period” in which the individual policy holder may cancel or revoke the policy, the full value of the policy is considered to be an asset. At which time this period has expired, only the cash surrender value of the policy is considered to be an asset. 5.5.28 LIEAP (LOW-INCOME ENERGY ASSISTANCE PROGRAM) AND ENERGY CRISIS INTERVENTION PAYMENTS The payments are excluded by federal law. SNAP WVW, AFDC-Related SSI Groups No No No SNAP WVW, AFDC-Related SSI Groups No Yes Yes* NOTE: Endowment Life Insurance Policies are considered balloon annuities and subject to a transfer penalty for LTC Services. See Section 24.8.