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Effective: May 1, 2007 |
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19.25ar3 - Asset Types (Archive) |
Archived: September 1, 2008 |
Whether an asset is counted, excluded, available or unavailable, depends on its type.
For all health care programs, take the following steps to determine a client’s asset total:
1. The application collects information needed to determine the value of an asset, which may include who owns the asset, what type of asset is owned, what the value of the asset is and the amount of encumbrances (money owed) against the asset.
See Verification of Assets for more information on what assets must be verified.
2. If the asset information is incomplete, attempt to contact the applicant or enrollee by telephone, and document their response.
3. If you are unable to contact the person by telephone, send a written request for the specific information needed, and a copy of the incomplete section of the application or other form.
4. Determine the equity value of each asset. To determine the equity of an asset subtract encumbrances (money owed) from the fair market value of the asset.
There are special rules for determining the value of some types of assets. See the sections detailing specific assets. Specific types of assets include:
l Cash, Accounts and Securities.
l Non-Homestead Real Property.
l Life Estates.
l Contract for Deed and Property Agreements.
l Vehicles.
l Annuities.
l Trusts.
l Continuing Care Retirement Community (CCRC) Entrance Fee.
Certain applicants and enrollees receiving MA payment of long-term care (LTC) services also have a limit on the amount of equity they have in their home. See LTC/EW Home Equity Limit for more information.