*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***
Effective: September 1, 2011 |
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19.25.60 - Household Goods and Personal Effects |
Archived: June 1, 2016 |
Household goods and personal effects are types of personal property. This section discusses the evaluation of these types of assets.
Items Acquired or Held Because of Their Monetary Value or as Investments.
Household goods are items of personal property found in or near a home that a person uses on a regular basis. They include items needed by the household for maintenance, use and occupancy of the premises as a home. Examples include pets, furniture, clothing, jewelry, appliances, children’s toys, tools and other equipment used in the home.
The exclusion for household goods does not include personal property that a person acquires or holds because of its monetary value or as an investment.
Exclude household goods from an individual’s asset test for all Minnesota Health Care Programs.
Example:
Carl lists electronic equipment as an asset on his application. His worker contacts Carl and learns the electronic equipment is a television and a personal computer that he uses in his apartment.
Action:
Exclude the electronic equipment from Carl’s asset test. They are household goods since they are personal property found in or near his home that Carl uses on a regular basis.
Example:
Mona lists a snow blower as an asset on her application. Her worker contacts Mona and learns the snow blower is in a shed on her property and she uses it to clear snow from her driveway in the winter.
Action:
Exclude the snow blower from Mona’s asset test. It is household goods since it is personal property found in or near her home that Mona needs to maintain her home.
Verification
Do not verify the value of household goods for any Minnesota Health Care Program.
Personal effects are items of personal property ordinarily worn or carried by the individual, and articles otherwise having an intimate relation to the individual. Personal effects include, but are not limited to, personal jewelry including wedding and engagement rings, personal care items, and educational or recreational items such as books or musical instruments.
Personal effects include:
l Items of cultural or religious significance to an individual, such as ceremonial attire.
l Items required because of an individual's physical or mental impairment, such as prosthetic devices or wheelchairs.
Personal effects do not include personal property that an individual acquires or holds because of its monetary value or as an investment.
Exclude personal effects from an individual’s asset test for all Minnesota Health Care Programs.
Example:
Elizabeth lists a photograph collection as an asset on her application. Her worker contacts Elizabeth and learns a local museum is displaying the photographs. The photographs show the early history of the town in which Elizabeth’s ancestors helped settle.
Action:
Exclude the photograph collection from Elizabeth’s asset test. They are personal effects since they are items of cultural significance to Elizabeth.
Example:
Alex lists a painting by a famous artist as an asset on his application. His worker contacts Alex and learns the painting was an inheritance from his great-grandfather. It has family significance and he plans to pass it down to his children when he dies.
Action:
Exclude the painting from Alex’s asset test. It is personal effects since the item has cultural significance to Alex.
Verification
Do not verify the value of personal effects.
Items Acquired or Held Because of Their Monetary Value or as Investments
Personal property that an individual acquires or holds because of its monetary value or as an investment is a countable asset and not considered to be household goods or personal effects. Other personal property items include, but are not limited to, gems, jewelry and collectibles acquired or held because of its monetary value or as an investment.
For all Minnesota Health Care Programs, count the equity value of any item acquired or held because of its monetary value or as an investment.
All of the health care application forms ask clients to report assets anyone in their household owns. Follow-up with the person if he or she reports, or the agency becomes aware of, an asset that appears to be an item acquired or held because of its monetary value or as an investment in order to determine if the asset can be excluded as household goods or personal effects.
Verification
Follow standard policy guidelines for the verification of assets.
Acceptable evidence to determine current market value of an item acquired or held because of its value or as an investment could include a recent sales slip, an appraisal of the item(s), or insurance coverage. If this information is not available, obtain an estimate from a knowledgeable source such as a local merchant.
Note: Insurance appraisals and amounts of insurance coverage often reflect replacement value (the amount it would cost to purchase a similar item new) rather than current market value. Do not use replacement value in lieu of current market value.
Example:
Jason lists a collection of paintings worth $20,000 as an asset on his application. His worker contacts Jason and learns he purchased the paintings several years ago for investment purposes. He keeps them in a secure facility for safekeeping. Jason had them appraised last year and provides his worker with a copy of the appraisal.
Action:
The paintings are not household goods or personal effects. Count the equity value of the paintings when applying Jason’s asset test.