LAW
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Ohio Laws and Rules
(A) “Personal property” consists of those resources that are available for the support or maintenance of a person’s needs. It consists of those items which are easily transported and stored, such as cash, bonds, life insurance, motor vehicles, etc.
(B) All liquid assets are countable resources. “Liquid assets” are those resources which are in cash or payable in cash upon demand. The most common types of liquid assets are cash on hand, savings accounts, checking accounts, trusts, stocks, and mortgages. The value of such items must be assessed, combined with the value of all other countable resources, and counted toward the one thousand dollar resource limitation.
(C) Checking and savings accounts are considered as cash since deposits are payable on demand.
(1) In a joint account, all funds in the account are a resource to the individual if he has unrestricted access to them.
(2) When an account is shared with others and the amount of funds has an effect on the individual’s eligibility, the CDHS shall inform the individual that if he has restricted access to the account by the contract with the financial institution or if a substantial portion of the account was contributed by another person, he must provide documentation to support his contention.
(a) A depository account/signature card will show who has access to the funds. This is the contract with the financial institution and it shows whether or not the signatures of more than one owner of the account are needed to withdraw from the fund. A statement from the financial institution is also acceptable documentation.
(i) If the documentation indicates access is restricted to the account through the need for the signature of other owners, then the account is considered to be owned by the recipient in proportion to the number of other owners.
(ii) If the applicant’s signature is all that is needed to access the account, the account is his in its entirety unless documentation is provided that indicates another person deposited a substantial portion of the funds and claims ownership of his share.
(iii) When an individual provides documentation that shows the other person(s) has a substantial interest in the account, only the portion the applicant/recipient contributed shall be considered a resource. Interest accrued on the account shall be allocated according to the portions of ownership. Documentation which explains the reason for the joint account, who made the deposits/withdrawals as well as corroborating statements from the co-owner(s) of the account must be obtained by the CDHS.
(iv) If it is determined the individual’s share of the resource is within the allowable limit, assistance can be approved or continued and the individual shall be required to remove his assets from the joint account within sixty days from the date his eligibility is established.
(v) If the co-owner(s) of the joint account is incompetent or a minor, a corroborating statement from the co-owner(s) is not necessary. A corroborating statement from a third party who has knowledge of the circumstances surrounding the joint account is necessary. If there is no third party, the CDHS shall make a determination whether or not assistance can be approved/continued and document the basis of that decision in the case record.
(b) A checking account is verified by examining the last monthly bank statement and the checkbook record to arrive at the current account balance. If the statement shows deposit/withdrawal activity which is inconsistent with the individual’s stated financial situation further investigation as well as documentation for the case record may be necessary.
(c) A savings account is verified by examining the last monthly bank account statement or the passbook. Photocopies of page(s) showing activity during the last sixty days should be maintained for the assistance group record. If the statement shows deposit/withdrawal activity which is inconsistent with the individual’s stated financial situation, further investigation as well as documentation for the record may be necessary.
(3) Past-due benefits and other underpayments that exceed six times the monthly SSI payment deposited into a dedicated financial institution account and any accrued interest or other earnings on such an account are excluded from income and resources.
(a) For any month that funds other than accrued interest or other earnings on the account are commingled in this account, the exclusion does not apply to any funds in the account. Exception: if the financial institution requires the individual to deposit money to open an account, e.g., minimum deposit, a small amount of other funds can be used to open the dedicated account. However, the funds that were used to open the account are not exempt as a resource and must be removed from the account once the account has been established and the past-due benefits paid into it. The funds that were used to open the account must be withdrawn before the end of the month following the month that the past-due benefits are paid.
(b) A dedicated account is an account in a financial institution, the sole purpose of which is to receive and maintain SSI past-due benefits which are required or allowed to be paid into such an account and the use of which is restricted by section 1631(a)(2)(F) of the Social Security Act. Funds other than those described above may not be deposited into a dedicated account.
(c) Past-due benefits are SSI benefits due but unpaid which accrue prior to the month payment was effectuated, benefits due but unpaid which accrue during a period of suspension from SSI payments for which the individual was subsequently determined to have been eligible, and any adjustment to SSI benefits which results in an accrual of unpaid benefits.
(d) The individual’s representative payee shall use funds in the account to pay for the following allowable expenses: education or job skills training, personal needs assistance, special equipment, housing modification, medical treatment, therapy or rehabilitation, or any other item or service that the commission for social security determines to be appropriate provided that such expense benefits the individual and, in the case of personals needs assistance, special equipment, housing modification, therapy or rehabilitation or other approved item, is related to the impairment (or combination of impairments) of the individual. These expenditures do not affect an individual’s income or resources.
(e) Restrictions on the use of funds in a dedicated account continue to apply during a period of suspension from SSI payments, non-pay status, and SSI eligibility but no payment. The exclusion from resources of the funds in the account continues to apply until SSI eligibility is terminated. Once an individual’s eligibility has been terminated, the exclusion of the funds in a dedicated account cannot be carried over if the individual establishes a new period of SSI eligibility by filing a new application for SSI. Reopening of a prior period of eligibility following termination is not a new period of eligibility and, therefore, the exclusion may be reapplied. Any remaining funds are a countable resource.
(f) The individual must provide verification that a dedicated account has been established. The verification should include the name and address of the financial institution, account number, account title, type of account, and the amount of money in the account.
(g) When an individual receives past-due benefits that may be, but have not yet been, deposited into a dedicated account, the payment is excluded for the lesser of six months or until the payee deposits the payment into the dedicated account. Past due benefits that are less than or equal to the amounts described above may be, but are not required to be, deposited in the account at the option of the representative payee.
(D) Stocks. The value of a stock is determined by the demand for it when it is bought and sold. As the result of constant trading, the value of stocks frequently varies from day to day. The value of stock is the closing price published in a newspaper. The value of stocks traded over the counter is expressed on a “bid” and “asked” basis. The bid price is used to determine the value of a stock. If the closing or bid price of a stock is not shown, a local securities firm must determine its value. If the ownership of the stock is shared, i.e., more than one name is on the face of the stock certificate, it is jointly owned and each person’s share is equal.
Shares of stock in an Alaskan native regional or village corporation are exempted from resources.
(E) Bonds. A U.S. savings bond is an obligation of the federal government but unlike other government bonds, it is not transferrable; that is, it can only be sold back to the government. Several series of U.S. savings bonds E, G, I, J, H can be quickly converted into cash at local banks; however, some bonds, including series E bonds, must be held at least sixty days from the date of issuance before they can be cashed. Other than those bonds which must be held at least sixty days from the date of issuance before being converted into cash, most savings bonds are convertible within one to two days.
(1) U.S. savings bonds are usually registered in the name of the owner(s) shown on the front of the bond and may be redeemed by the owner by completing a form on the back of the bond. If ownership of the bond is shared (more than one name is on the face of the bond), it is jointly owned and each person’s share is equal, but any one of them can dispose of the bond.
(2) In establishing the value of a U.S. savings bond, the date of issuance on the face of the bond is controlling. The value of the bond depends on the time elapsed from the date of issue. Although many U.S. savings bonds have a table of values on the reverse of the bond, this table is often inaccurate since the interest rate on U.S. bonds may have changed since the bond was issued. A bank can determine the current value. The CDHS must document the name and title of the person from the bank who provided the information, and the current value of the bond.
(F) Mortgages. A mortgage is a pledge of a particular property for the payment of a debt or the performance of some other obligation within a prescribed time period. A mortgage may generally be discounted or sold. The amount for which the mortgage could be discounted or sold is the amount of the countable resource. A bank, savings and loan company, or real estate broker is contacted to determine whether a mortgage can be discounted or sold and the amount for which it can be discounted or sold.
(G) Dividends and interest. Accrued dividends and interest on savings accounts, certificates, stocks, bonds, etc., are added to the principle and the total evaluated as a liquid asset. Dividends and interest which are paid directly to the family and are not added to the value of the resource are unearned income.
(H) Retirement plans. The amount of funds which an assistance group member is able to withdraw from KEOGH plans, 401k plans, individual retirement accounts (IRAs), or the Ohio deferred compensation program shall be considered as resources. No portion of the funds withheld for payment of any penalty for early withdrawal (such as taxes, fees, interest, charges, etc.) shall be considered as part of the resource. The funds shall be considered as a resource as of the date that the assistance group member actually receives the funds.
(I) Life insurance. The cash value of all life insurance of any member of the assistance group is a resource. In order for the value of any life insurance policy to be considered in the total amount of resources, it is necessary that the policy be owned by the applicant/recipient or a member of the assistance group. The cash value of any life insurance must be assessed, combined with the value of all other countable resources, and counted toward the one thousand dollar resource limitation.
(1) The CDHS must verify the cash value of life insurance policies and record the information in the assistance group record. The policy itself generally provides all information needed to determine any cash value that may be available.
(2) The CDHS must contact the insurance company or local agent if the policy does not provide the information needed to establish the cash value of the policy.
(J) Motor vehicles. Motor vehicles include automobiles, trucks, campers, buses, vans, motorcycles, trailers, boats, snowmobiles, and airplanes. One motor vehicle is exempt as a resource if its value does not exceed one thousand five hundred dollars with consideration of liens and encumbrances. If this vehicle has any excess value over the one thousand five hundred dollar limit, the excess value is applied to the overall one thousand dollar resource limitation.
(1) The “net value” of a motor vehicle is its current market value minus any liens or encumbrances. The market value is determined from the current month’s “NADA Official Used Car Book”, using the column headed “average trade in,” for the particular year and model, taking into consideration all options on the vehicle and its high or low mileage. Verification of the vehicle’s description (year, make, model) and of liens or encumbrances must be secured. For vehicles not listed in the “NADA Official Used Car Book,” the CDHS shall assist the applicant/recipient in obtaining an appraisal of the current market value from a recognized dealer.
(2) There may be instances when an individual will dispute the “NADA” book value of the vehicle for reasons, such as damage or inoperability. The individual shall be given the opportunity to acquire an independent verification of the value, at his own expense, from a recognized dealer. The individual shall be advised that the CDHS’ final determination of value is not bound by such an appraisal but that it will be considered in the evaluation.
(3) If a vehicle is no longer listed in the “NADA” book, the individual’s independent estimate of the value shall be accepted, unless there is reason to believe that the estimate is incorrect. If it appears that the vehicle’s value will affect eligibility, the individual shall obtain an appraisal or produce other evidence of its value, such as tax assessment, insurance company estimate, or newspaper advertisement indicating the sale price of similar vehicles. The individual shall provide verification of the value of licensed antique, custom made, or classic vehicles.
(K) Funeral agreements. A “funeral agreement” is defined as a preneed (prepaid) funeral contract, written agreement, contract or series of contracts to provide funeral services and/or funeral goods to be used in connection with the funeral or final disposition of human remains. Payment for these goods or services is made outright or on an installment basis prior to the death of the person so purchasing them or for whom they are purchased.
(1) All payments for funeral goods and services made under a preneed funeral contract remain intact as a fund held by a financial institution or in a common or pooled trust fund until the death of the person for whose benefit the agreement is made or until the goods or services are delivered.
(2) Any deposit may be released upon demand of the person for whose benefit such deposit was made or upon the demand of the seller for its share of the deposited funds and earned interest if the contract has been canceled.
(3) Funeral agreements with equity value of fifteen hundred dollars or less for each family member are excluded from the resource limitation. If the equity value of funeral agreements exceeds fifteen hundred dollars, the excess value is counted toward the one thousand dollar resource limitation. Prior to determining whether the excess value is available to the applicant/recipient, the contract will have to be reviewed to determine whether it is revocable or irrevocable.
(L) Burial plots. The value of burial space held for the purpose of providing a place for burial for each member included in the assistance group is excluded and does not count toward the resource limitation. The equity value of any burial spaces in excess of one per person is countable toward the resource limitation.
(M) Household goods. Household goods are all personal property customarily found in the home and used in connection with the maintenance, use, and occupancy of the premises.
(N) Personal effects. Personal effects are other items of personal property normally held and recognized as incidental items intended for personal use by one or more household members.
HISTORY: Eff 6-1-76; 12-31-77; 2-3-80; 5-29-80; 1-1-81; 10-1-81; 5-7-82; 7-15-84; 10-1-84 (Emer.); 12-27-84; 1-1-85 (Emer.); 4-1-85; 5-3-85 (Emer.); 8-1-85; 1-2-86; 11-1-87; 10-1-90; 10-30-95; 10-1-97; 10-31-97 (Emer.); 1-26-98; 3-1-98 (Emer.); 5-1-98
Rule promulgated under: RC 111.15
Rule authorized by: RC 5111.01
Rule amplifies: RC 5111.01
REVIEW DATE: 1/26/03