16. property

Medi-CalGeneral Assistance 16. Property

16. Property

16.1 General Assistance Policies

The following policies address Property Requirements:

[GA 131, 170, 171, 172, 180, 181, and 182]

16.1.1 Lien - GA Policy [131] (For GA Loans prior to 01/01/2014)

The signed Agreement to Reimburse shall be recorded and shall thereby create a lien against all current and future real property owned or purchased by the signee or cosignees of the agreement.

16.1.2 Real Property Not Used as a Home - GA Policy [170]

An applicant or recipient who owns real property, other than real property used as his or her home, shall be deemed to be receiving income therefrom, such income to be equal to the rental value of the real property.

16.1.3 Real Property Used as a Home - GA Policy [171]

An applicant or recipient may qualify for aid regardless of the value of real property which he or she owns, as long as the real property is used as his or her home.

16.1.4 Transfer of Real Property - GA Policy [172]

Any transfer of real property or an interest in real property by an applicant without adequate consideration within two years prior to the date of application for aid which was for the purpose of qualifying for aid, shall render the applicant ineligible for aid unless the real property or the interest therein is reconveyed to the recipient or is made subject to a lien held by the County.

16.1.5 Personal Property - GA Policy [180]

An applicant or recipient who owns nonexempt personal property with an equity value in excess of $500 shall not be eligible for aid. The net market value of nonexempt personal property shall be verified by the Department.

Update #11-086-1

2General Assistance 16. Property

16.1.6 Exempt Personal Property - GA Policy [181]

The following items are exempt from consideration as personal property:

• Personal possessions

• Wedding and engagement rings

• Heirlooms

• Clothing

• Household furnishings and items to equip and maintain a household for the recipient.

• Equipment and materials, including inventories necessary to implement or continue an approved plan of self-support, when the total value does not exceed $300.

• One motor vehicle which has a gross market value not exceeding $4,650 following deduction of encumbrances.

• One irrevocable burial trust per person if the total cost does not exceed $300.

• One interment plot, vault, or crypt per person, if retained for use by said person.

• Personal property which is unavailable for the support of applicant or recipient.

16.1.7 Transfer of Personal Property - GA Policy [182]

The transfer of personal property which has an equity value in excess of $300 without adequate consideration within two years prior to the date of application for aid which was for the purpose of qualifying for aid shall make the applicant ineligible for aid for the length of time the property could have provided a level of support at the maximum level of aid authorized by these policies.

16.2 Definitions

16.2.1 Personal Property

Personal property is defined as possessions or interests, exclusive of real property, which may be easily transported or stored.

Update #11-08Page 16-2


16.2.2 Real Property

Real property is defined as land and improvements on land, including condominiums and co-op apartments.

In addition, real property which is not used as a home by the applicant/recipient is presumed to be producing a net monthly income of at least 6% of the net market value. [Refer to Section16.9. “Real Property Not Used as Home,” page 16-15 for details]

Exception:Exception:

Motor homes, mobile homes, campers, trailers and boats are to be considered as real property if they are used as a home, unless they are located on land which is also owned by the applicant/recipient.

16.2.3 Ownership

The owner of property, real or personal, is the person or persons who hold legal title to the property.

Example:

Property which has been transferred by a GA applicant/recipient to another person will continue to be included in the eligibility determination, if the property was transferred for the purposes of:

• Convenience due to inheritance, or• To avoid probate, AND• No beneficial interest remains, i.e., the applicant/recipient retains no right to possess and/or

use the property, or to dispose of the property and receive the proceeds.

Example:

A GA applicant wishes to avoid probate costs and transfers some property in Florida to a son. This property is still evaluated in the eligibility determination, using “Transfer of Property” rules. [Refer to “Transfer of Property,” page 16-17].]

16.2.4 Shared Title

The EW will assume that equal rights to possession, control and use of property, real or personal, are held by all persons named on the title. However, this presumption may be refuted by evidence to the contrary. Some items to consider in the determination include, but are not limited to the:

• Source of funds invested in the property• Amount of funds invested in the property, and• Facts of an inheritance.



Note:

The above items must be verified in writing from collateral contacts, (e.g., lawyers or relatives).

16.2.5 Separate Property

Separate property is defined as any item that is considered separate property under California Property Law which assumes all property is community property unless proven otherwise. Generally, separate property is:

• Property acquired by either spouse prior to marriage.

• Property held as separate property in a separate property state.

• Property acquired by either spouse separately during the marriage as a gift or an inheritance.

• Property acquired during marriage if purchased with funds which are the separate property of the owner.

Example:

Funds received from the sale of separate property or by gift or inheritance.

16.2.6 Community Property

Community property, real or personal, is acquired by the husband and/or wife during the marriage, unless it is determined to be separate property as stated above. [Refer to “Separate Property,” page 16-4].]

Community property includes:

• Property purchased with community funds. These funds may include the earnings of the spouses while married AND living together.

• Income derived from community property.

• Funds received from the sale of community property.

• Property purchased with funds which cannot be identified as separate will be presumed to be community property, UNLESS refuted by documentation which shows the property to be separate.

• Each spouse is presumed to own one-half of any available community property. This may be refuted with written documentation.



• Retirement funds which began while married and living together.

Note:

Retirement funds which began when spouses were separated or divorced are not necessarily considered community property.

16.2.7 Encumbrances

Encumbrances will be allowed against the value of personal property, UNLESS specifically disallowed, (e.g., an automobile's GROSS value is used in the property determination.) An encumbrance (debt) must meet ALL of the following criteria:

• The title (if one exists) is being held by the legal owner as security, AND

• The debt must be verified to be:

• Specifically against an item, AND

• Expected by the lender to be repaid, or else collection or judgment action will follow nonpayment if appropriate, AND

• Expected to be repaid by the borrower.

• The debt must be supported by a contract of the lender or his agent, OR

• The debt must be supported by written statements from both the lender and the borrower.

Example:

An applicant borrows $450 against the value of his Cash Surrender Value (CSV), of his life insurance policy to pay his rent. The face value of the insurance is $10,000. The CSV is $500. The verified encumbrance is $450. The value of the policy is $50. The applicant meets the property limit.

Example:

An applicant owns a boat which is appraised at $2,000. The applicant verifies an encumbrance against this boat in the amount of $2,500. The value of the boat is $0. The applicant meets the property limit.



Note:

Credit card debts are nonspecific and may NOT be allowed as encumbrances.

16.3 Availability of Property

Property which is not available will not be considered in determining eligibility.

16.3.1 Presumption of Availability

The applicant or beneficiary is presumed to have availability to their share of property. This presumption can be overturned only by documentation presented by the applicant/recipient that availability does not exist.

Note:

The EW is responsible for making all determinations of availability.

16.3.2 Documentation Required to Substantiate Unavailability

Documentation which establishes that property is unavailable may include, but is not limited to the following.

• Legal obstacles, such as:

• A deed or will restricting sale unless all principals agree

• One or more liens

• Other persons listed as owners of the property who refuse to sell, including a spouse from whom the client is separated.

Note:

Legal obstacles MUST be reviewed at every reinvestigation.

• An oral contract supported by written statements from all principals involved if other parties refuse to provide statements. Examples of acceptable evidence are as follows:

• Statement of realtor or attorney verifying legal obstacles prevent the sale of property



• Copies of registered/certified letters sent from the beneficiary to other party requesting their cooperation in selling the property

• New statements/evidence must be submitted to substantiate the continuation of legal obstacles at every reinvestigation

• The applicant/recipient’s sworn statement on a “General Affidavit” (CSF 2).

Note:

A new sworn statement is required at EVERY reinvestigation (RRR).

16.4 Personal Property

An applicant or recipient who owns nonexempt personal property with an equity value in excess of $500.00 shall not be eligible for aid. The net market value of nonexempt personal property shall be verified by the Department.

The $500 personal property limit applies to a total of the following items. The following are examples of personal property and verifications needed to substantiate property:

16.4.1 Cash-on-Hand

Cash on hand is defined as any cash the client has in his/her possession. The client's statement is satisfactory verification.

16.4.2 Bank Accounts:

Bank accounts are defined as:

• Checking• Savings• Money Market Accounts etc.

Acceptable Verification

The following items must be dated within the prior 30 days and include the bank name, account number, and account balance:

• Current Bank Statement.• Bank Teller Statement (automatic or personal).



• Passbook balance entry, dated and initialed by bank personnel.

Unacceptable Verification

An applicant/recipient's:

• Personal passbook balance.• Unidentified note.• Automated teller statement that does not include all of the required information.• Outdated bank statement.

Note:

Income is not countable as personal property in the month of receipt.

16.4.3 Trust Funds

Trust funds are usually verified by documents in the applicant's/recipient's possession.

• Trust funds established WITHOUT a court order are assumed to be totally available to the beneficiary unless verification is obtained confirming the fund is conditionally, partially, or not available.

• A trust fund established by a court order, which defines conditions of release of the funds, is NOT available to the beneficiary until those conditions are met or a petition to void or modify those conditions is granted by the court.

• The court must be petitioned within 30 days of the date of application. Verification of the petition is required.

• No other petition is required unless a court's denial of the petition contains a specific time limit, or a condition develops under which the funds will be released, as established by the court.

• During the time the court is being petitioned, or if the court refuses to issue a final order, the fund will be exempt and aid may be granted.

• Time limits for checking on the receipt of the results of such petition will be every three months, and the case must be ticklered accordingly.

• When the court denies or grants the petition in all or in part, eligibility must be redetermined.

• If the individual in control of the fund refuses to petition the court within 30 days, and the fund, with other personal property, exceeds the property limit, the applicant/recipient for whom the funds are held in trust is ineligible for aid.



• If the fund, in combination with other personal property, exceeds the property limit, the individual in control of the fund will be expected to either reduce other assets or petition the court to determine the fund's availability and request release of the fund for the applicant's/recipient's support.

• Document all activities involved in determining the fund's availability on CalWIN Maintain Case Comments window. Documentation must identify the beneficiary and individual in control of the fund, where the fund is held, general conditions for release, and current value.

16.4.4 Securities

The value of securities is to be determined at the time of application, and reevaluated at each reinvestigation thereafter.

16.4.5 Stocks

The current market value of stocks is most easily determined using the daily newspaper listing of price per share. If the stock is not listed, the EW must contact a local brokerage firm.

Recorded documentation will include the name of the stock, number of shares, and current share and/or total values.

16.4.6 Bonds

The value of U.S. Bonds is determined by contacting any bank or institution where they may be liquidated. Documentation must include the bond type, face value, series number, serial number, date of issue, and current bond and/or total values.

16.4.7 Notes, Mortgages, Trust Deeds, Promissory Notes, Annuities

Value of notes, mortgages, trust deeds, or annuities is usually determined by documents in the applicant's/recipient's possession. Determine the current value of the note (face value minus the unpaid balance). If the remaining balance added to other nonexempt personal property exceeds the personal property limit, the applicant is ineligible. If the applicant disagrees with the value, an appraisal of the note by a qualified appraiser is acceptable.

16.4.8 Other Personal Property

Other personal property includes, but is not limited to the following:

• Claims on estates• Insurance judgments• Civil judgments



• Business interests• Oil leases and mineral rights.

16.4.9 Life Insurance

Life insurance means a contract for which premiums are paid during the lifetime of the insured, and on which the insuring company pays the face amount of the policy to the beneficiary upon the death of the insured. Life insurance may also be purchased by a single premium or by letting dividends accumulate.

The following are definitions regarding life insurance policies:

• CASH SURRENDER VALUE (CSV) - The CSV is the amount of money which can be borrowed by the owner of a life insurance policy. Loans may be made against the CSV and are deductible from the CSV, if verified.The value of the CSV varies and may usually be obtained by viewing charts which accompany the policy.

• FACE VALUE - The face value is the amount which the policy is worth if all premiums have been paid, and if the insured beneficiary died.

• TERM INSURANCE - Term insurance is insurance which is payable only upon the death of the owner for which the insurance is purchased. There is no CSV.

• WHOLE LIFE INSURANCE - Whole Life Insurance has a cash surrender value.

Verification

Verification of the CSV consists of making copies of the actual life insurance policy, and the CSV tables which are attached to the policy, or a letter from the insurance company. The applicant is not eligible until verification is received. All verifications received are scanned into the IDM case record.

Determination of Value

The EW must take the following action to determine the CSV:

Step Action

1. Determine the age of the owner of the policy on the date of the policy issuance.

2. Determine the years that the policy has been in force.

3. Use the chart attached to the policy to compute the value per $1,000, or other stated amount.

4. Multiply the value per $1,000, times the number of thousands in the face value of the policy. The result is the CSV of the policy.



Loan Documentation

The applicant/recipient may have a loan against the value of the CSV. The current CSV value must be obtained in writing from the lender. The applicant recipient must be allowed five working (5) days to obtain this verification.

Note:

If the applicant/recipient needs additional time to obtain the necessary verification(s), the EW must use prudent judgment in allowing additional time. Many lenders take three to eight weeks to provide this verification.

Annual Verification Requirement

CSV must be verified annually at reinvestigation.

16.5 Equipment and Materials for Self Employment

Equipment and materials, including inventories, necessary to implement or continue an approved plan of self-support, may be exempt when the total value does not exceed $300.

16.5.1 Vocational Services Review of Approved Plan

Verification of an approved plan must be completed by Vocational Services (VS), and reviewed once a year at reinvestigation, unless VS stipulates a shorter review period.

16.6 Burial Trust

One irrevocable burial trust, per person, is exempt if the total cost does not exceed $300. Any amount over $300 is counted in the personal property limit.

Note:

The policy MUST state “irrevocable.” A policy may be changed from revocable to irrevocable with no penalty. A new policy showing the word “irrevocable” is required before the policy can be exempted.



16.6.1 Burial Plot, Vault or Crypt

One interment plot, vault, or crypt, per person, is exempt if retained for personal use.

16.7 Motor Vehicle

One motor vehicle, including a motorcycle, moped, motor scooter, motor home not used as a home, or any other motor driven device, is exempt with limitations:

• Have a maximum fair market value of up to $4,650 or less, following deduction of encumbrances.

16.7.1 Encumbrances

An encumbrance on a vehicle is the “pay-off” amount. This amount includes the principal plus any interest that is currently due on the vehicle. The “pay-off” amount does NOT include ALL the interest that will become due and payable in the future. The EW MUST use the “pay-off” balance showing on a current monthly statement or contact the lender for the current pay-off amount.

The encumbrance is then subtracted from the Fair Market Value, resulting in the Equity Value.

16.7.2 Kelley Blue Book (KBB) Value

The gross value of a vehicle shall be determined by the use of the on-line “Kelley Blue Book” website. Information regarding the vehicle’s year, make, model and number of doors is required.

When using the on-line KBB, follow these steps:

• Go to www.kbb.com.

• Select Search by: “Year, Make & Model.”

• Enter the Year, Make, Model then click on the “GO” arrow.

• Select “Trade-In Value.”

• Select the “Trim” (body type).

• On the Select Equipment page, only enter vehicle mileage (12,000 x age of car) and the client’s zip code or office zip if the client is homeless (use the existing auto-populated equipment values - DO NOT add additional equipment).


http://www.kbb.com/

http://www.kbb.com/


Example:

An 8 year old car would have a mileage value of 96,000. It is calculated by 12,000 x age of car (8) = 96,000.

• On the Select the Vehicle Condition page, select “Fair” as the condition unless the client indicates otherwise.

• The “Trade-In Value” is displayed and will be used as the FMV of the vehicle.

• Print a copy of the “Trade-In Value” page and have it IDM’d to Benefits-F2.

16.7.3 Determining the Motor Vehicle’s Gross Value

The gross market value of a motor vehicle is determined as follows:

If the vehicle... Then the EW MUST...

• Registration or DMV printout is available for automobiles, mobile homes (two fees if double wide) trailers or motorcycles, OR

• Registration or DMV printout is NOT available or unknown,

• Determine value by using the on-line Kelley Blue Book.• Verify current “pay-off” amount.• Subtract encumbrances from the fair market value in the Kelley Blue

Book.

Is over 25 years old, an antique, classic or specialty vehicle,

Assess the value by using the following:

• Online Kelley Blue Book Value.

• Three estimates from dealers.

• Craig’s List, or

• Newspaper ads.

Is registered out of state or is unregistered,

• Obtain all available identifying records.

• Determine value by using the on-line Kelley Blue Book. The on-line Kelley Blue Book may be accessed through their website. http://www.kbb.com.

Note:The on-line Kelley Blue Book may be accessed through their website. http://www.kbb.com.

Note:There is no requirement that the vehicle be registered in California.


http://www.kbb.com/

http://www.kbb.com/


16.7.4 Motor Scooters

There are three categories of motor scooters:

If the Motor scooter has... Then the EW MUST...

An engine with the horsepower equivalent to that of a motor cycle.

Consider the motor scooter the same as a motorcycle. (Use the motor vehicle chart above.)

Been classified for off highway driving only,

Assess the value by using the following:

• On-Line Kelley Blue Book• Three estimates from dealers• Craig’s List, or• Newspaper ads.

Been classified as a moped, Assess the value by using the following:

• Three estimates from dealers• Craig’s List, or• Newspaper ads.

]

16.7.5 Client Disagreement with Determination of Value

When applicants/recipients disagree with ANY of the above determinations of value, they may submit three (3) written estimates of value from car dealers.

This process may be used only AFTER the value of the motor vehicle has been determined by one of the methods listed above.

These written estimates are acceptable only if ALL of the information listed below is included:

• The name of the dealer• The phone number of the dealer• The name of the client• The date• The make, model and year of the motor vehicle, and• The dollar value of the vehicle.

16.8 Real Property Limits

16.8.1 Property Limit

There is NO value limit for real property used as a home.



16.8.2 Real Property Not Used as Home

Real property NOT used as a home MUST be:

• Considered to be producing a net monthly income of at least 6% a year of the gross market value, AND

• Counted in the eligibility determination.

[Refer to “Conversion of Property,” page 16-17] for procedures and examples.]

16.9 Real Property Not Used as a Home

Real property (land and/or improvements on land) owned by an applicant/recipient will be determined to be producing a net monthly income over a period of one year which equals 6% of the gross market value WHETHER OR NOT the applicant/ recipient is receiving the income. This income must be applied to the income calculations WHETHER OR NOT the land is able to produce income.

Encumbrances against the market value are not allowed.

Example:

An applicant owns four acres in a landslide area of the Santa Cruz mountains. There are no improvements on the property. He has been trying to sell the property, but has not been successful. The gross market value of $50,000 must be used to obtain the 6% gross yearly value. The gross yearly amount is divided by twelve (12) months to determine the net monthly income.

16.9.1 Determination of Value

The Gross Market Value is obtained from the most recent property tax assessment. The assessed value is the same as the gross market value, if the property is located in California.

The assessed property value in California may also be obtained by calling the local tax assessor's office, or by using the value of an appraisal by a member of a recognized professional appraisal society. Document all contacts on CalWIN Maintain Case Comments window.

For out of state property, the tax assessor's offices in other states must be contacted in order to obtain its market value.



16.9.2 Determination of Ownership Share of Value

The owner is the person or persons who hold legal title. Title may be sole and separate, joint or in common. If the title states “John Doe, et. al.," this means that others besides John Doe hold legal title. The “et al.,” means “and all others.”

• If the client is the sole owner of the property, the entire gross market value must be used in the computation of the net monthly income.

• If the client shares ownership with other persons, only the client's share will be used in the computation.

Example:

Client holds a one-third interest in a home. He shares the title with his aged father and younger brother. His father lives alone in the home but pays no rent. The gross market (assessed) value of the property is $150,000. One-third share equals $50,000 and is subject to the net monthly computation.

• Computation of Net Monthly Income

1. Calculate the share of the gross market value.

1. GMV = $150,000 ÷ 3 = $50,000

2. Calculate 6% of the gross market value. 2. $50,000 x 6% = $3,000

3. Divide the 6% figure by 12 months income amount.

3. $3,000 ÷ 12 = $250

4. Determine what amount should be used as income.

4. Actual Rent = -0- Net Income = $250 a month to the budget (6% of monthly market value).

Note:

The amount of greater value (the actual rent received OR the calculated amount) will always be used as net income to the budget.

Update #11-08-16


16.10Conversion of Property

16.10.1 Definition

Conversion of property is the act of changing property from one form to another without changing ownership.

The applicant/recipient who converts real or personal property must have the new property evaluated for continuing eligibility.

16.10.2 Evaluation

The evaluation of property may be necessary for either personal or real property.

16.11Transfer of Property

The transfer of personal property with a net market value of more than $300 or of an interest in real property, without adequate consideration within two years prior to the date of application may render the applicant/recipient ineligible for a period of time. If the transfer was for the purpose of qualifying for aid, it will render the applicant ineligible unless the property or the interest therein is reconveyed to the recipient or is made subject to a lien held by the County. [Refer to “Transfer of Real Property - GA Policy [172],” page 16-1 and “Transfer of Personal Property - GA Policy [182],” page 16-2.]

The calculation of the period of ineligibility is discussed in “Period of Ineligibility.” [Refer to “Period of Ineligibility,” page 16-19].]

16.11.1 Definitions

Transfer

A transfer is defined as a change in ownership whereby a person no longer holds title to, or beneficial interest in property, including life estate.

Adequate Consideration

Adequate consideration is defined as the receipt of cash or property which is fair and reasonable under the circumstances considering the net market value of property that is sold, converted or transferred.



16.11.2 Intent of Transfer

The intent of the applicant in transferring property is to be considered in determining the effect of the transfer on eligibility. A transfer of property is, in itself, disqualifying only when the reason for making the transfer was to qualify for aid, for a greater amount of aid, or to avoid the 6% net yearly income computation.

To determine the “intent” of transfer, the EW must evaluate the applicant's stated reason for the transfer and the consistency of such statements with the known facts.

Documentation of expenditures or transfers of property is not required unless the applicant was, when excess property was determined or transfer occurred, applying for or in receipt of aid and/or informed of a requirement to document expenditures or transfers. Documentation is required if the client disagrees with a decision of ineligibility due to property transfer.

16.11.3 Transfers Not Resulting in Ineligibility

The following are examples of transfers not resulting in a period of ineligibility:

• The property was exempt.

• The Net Market Value of personal property transferred was $300 or less.

• Adequate consideration was received. This includes:

• Satisfying a legal debt, such as court ordered child support.

• Reimbursing someone (other than a spouse) for care or benefits provided when there was an agreement or understanding that reimbursement would be made.

• At the time of transfer, foreclosure or repossession of property was imminent.

• The client did NOT receive adequate consideration, but provided evidence that shows without a doubt that it was not done in order to become eligible.

• The property was transferred more than 2 years prior to application.

16.11.4 Transfers Resulting in Ineligibility

Ineligibility results from a transfer without adequate consideration (use current market value as a base) if transfer was:

• Within two years of application, AND

• Utilization of property was possible only by sale, AND



• The value of current property, when added to the market value of the transferred property, would have exceeded maximum property limits.

The following transfers usually result in ineligibility:

• Transfer for the purpose of reducing property value to below the maximum property limits.

• Transfer of real property not used as a home for the purpose of avoiding the required 6% net income calculation.

• Transfer of income-producing personal property (value over $300).

• Transfer in return for life care.

• Adequate consideration was NOT received for nonexempt property transferred, such as cash, mortgages, life estates, or deeds of trust.

Note:

Presumption is made that transfer was made in order to establish eligibility. The client can refute this presumption. The client must show that adequate resources were available for support and medical care.

Example:

Mr. Clarke applied for GA on October 15, 2011. In December 2010, he transferred a deed-of-trust valued at $30,000 to his daughter as a Christmas gift. Since the property that was transferred was not exempt and adequate consideration was not received, a determination must be made as to whether this was a transfer to establish eligibility, and, if so, a period of ineligibility must be determined.

16.12 Period of Ineligibility

If the transfer was for the purpose of qualifying for aid, it will render the applicant ineligible for aid for the length of time the property could have provided a level of support at the maximum level of aid. The maximum level is the level for the budget unit at independent shelter rates. [Refer to “Computation of the Period of Ineligibility,” page 16-20].]

16.12.1 Beginning and Ending Dates

The Period of Ineligibility begins on the first of the month following the date the transfer which resulted in ineligibility occurred (if a continuing case, allow for a seven-day notice).



Example:

A transfer of property in the amount of $1000 occurred in January 2011. The amount above the $300 limit is $700. (337 ÷ 700=2.07).

If the transfer period occurred... Then...

Prior to application, The application would be denied and the client would not be eligible again until March.

After eligibility was certified, The case must be discontinued as soon as a 7 day notice can be provided. The period of ineligibility would be 2.07 months.

16.12.2 The Period of Ineligibility ends when:

• Property legally returned to client, or

• Client receives adequate consideration, or

• Excess Net Market Value Reduced to Zero, or (Months of ineligibility reduced to 0.)

16.12.3 Computation of the Period of Ineligibility

To compute the period of ineligibility, divide the total amount of property transferred in excess of $300 by the maximum need standard. The resulting whole number is the number of months of ineligibility. If there is a remainder from this division, the remainder will be considered as income in the month following the end of the period of ineligibility. [Refer to “Transfer of Personal Property - GA Policy [182],” page 16-2.]

Example:

An applicant gave $1,100 to a friend 11/20/10, and makes application for GA 12/15/10. It is determined the transfer of property was for the purpose of qualifying for aid. The need standard is $337. Compute the period ineligibility as follows:

$1,100

-300 --------



The applicant is ineligible for 12/10 and 01/11. The remaining $126 will be applied as income for the month of 02/06, if the client is otherwise eligible.

Note:

(1) The period of ineligibility computation must be documented on CalWIN Maintain Case Comments window. (2) The period of ineligibility must be recomputed if the need standard changes.

Income

Income to a recipient during the period of ineligibility has no effect on the period of ineligibility.

Special Needs

Only verified special needs as defined in “Need Standards” may be taken into consideration (over and above the formula figures) when computing the length of the period of ineligibility. [Refer to “Need Standards,” page 25-1].]

16.12.4 Failure to Provide Information

General Assistance clients who fail to provide essential information when requested must be discontinued.

The client must be informed in writing of the required information/documents needed and due date. A notice of action for discontinuance is sent ONLY after the recipient has failed to provide essential information by the designated date.

Note:

Each step in the above procedure must be documented in CalWIN Maintain Case Comments window, and all documents must be scanned into the IDM case record.

$800 (value of property in excess of $300)

2 ------

months

$337 $800

-674 ------

with $126 remaining


16. property

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