Ala. Admin. Code r. 560-X-25-.08

Current through Register Vol. 43, No. 1, October 31, 2024

Section 560-X-25-.08 - Development Of Ownership Interest In Liquid Resources For SSI-Related Individuals

(1) Cash -- Cash on hand is always counted as liquid resource except when it is a business asset necessary to the operation of a trade or business that is excluded as necessary for self-support or under an approved plan for achieving self-support in the case of the blind or disabled.

(2) Checking, Savings, and Other Accounts.

(a) General. These are countable resources if the applicant/recipient has unrestricted legal access to the accounts. This rule applies to individual accounts and joint accounts as well as certificates of deposit, savings certificates, and all forms of time deposits, whether held individually or jointly. This rule applies to accounts, deposits, etc., in any financial institution or being held by any financial or brokerage service or agency.

(b) Joint Accounts.

1. When only one holder of a joint account is an applicant/recipient who has unrestricted access to the funds in the account it is presumed that the applicant/recipient owns the total funds in the account.

2. When two or more eligible individuals or applicants are holders of the same joint account and each has unrestricted access to the funds in the account it is presumed that the eligible individual or applicant owns an equal share of the total funds in the account, regardless of the source of the funds.

3. Unrestricted access depends upon the legal structure of the account. When the account reads "or" or "and/or" and the applicant/recipient is legally able to withdraw funds from the account, he/she is considered to have unrestricted access to the total funds in the account.

(c) Rebuttal of Presumption. The opportunity to rebut the presumption of ownership shall be afforded all applicants/recipients. In order for an applicant/recipient to rebut successfully the presumption of full or partial ownership, all of the following documentation is required:

1. A statement by the applicant/recipient on a form 234, giving:

(i) His/her allegation regarding no ownership or partial ownership of the funds documented by a statement from the financial institution, copy of the bank book, account book, certificate of deposit, etc., verifying the language of the account, and a copy of the signature card;

(ii) The reason for establishing the joint account;

(iii) Who made deposits to and withdrawals from the account, and how withdrawals were spent, documented with evidence such as wage statements, deposit slips, and employer's statements verifying source of deposits and cancelled checks; and

(iv) Corroborating statements on form 234 from the other account holder(s), or, if the co-holder of the joint account is incompetent or a minor, a statement from a third party who has knowledge of the circumstances surrounding the establishment of the joint account.

2. If the rebuttal is successful and it is determined that the funds in the account do not belong to the applicant/recipient and should be excluded as a countable resource, a change in the account designation removing the applicant/recipient's name from the account or restricting access to the account must be executed and verification of such submitted as evidence before eligibility can be determined. If this change is not made and evidence is not submitted by the applicant/recipient within ten (10) days following notification, the presumption of ownership will apply.

(3) Promissory Notes, Loans, and Property Agreements (Mortgages) -- Promissory notes, loans, and property agreements are considered resources, if the owner had the legal right to sell them. If so, the resources should be counted in the amount of the outstanding principal balance.

(4) Trusts -- Whether the principal of a trust is a resource to the applicant/recipient depends on its availability to the applicant/recipient by the terms of the trust instrument itself.

Trusts, or other similar legal devices may be excluded from consideration as a resource. Medicaid shall determine whether the requirements for exclusion expressed in the current statutory authorities have been meet.

(5) Annuities - A lump sum annuity that can be sold, cashed in, surrendered or revoked will be considered a resource in the amount of the current value of the annuity unless a lesser value is satisfactorily documented.

(6) Stocks, Bonds, and Mutual Fund Shares -- These are considered countable liquid resources according to their market value.

(7) Life Insurance -- The cash surrender value of any life insurance policy owned by the applicant/recipient is a countable resource to the extent provided in 20 C.F.R. § 416.1230.

(8) The foregoing are not intended to be an all-inclusive list of liquid resources. Any resource readily convertible into cash may be considered a liquid resource.

Author: Audrey Middleton, Associate Director, Policy Program Implementation Unit, Certification Support Division

Ala. Admin. Code r. 560-X-25-.08

Rule effective October 1, 1982. Amended: effective August 10, 1988. Amended: Filed August 5, 1997; effective September 9, 1997. Amended: Filed January 9, 2004; effective February 13, 2004.

Statutory Authority: State Plan; Social Security Act, Titles XVI, XIX; 42 C.F.R. §§401, et seq.; 20 C.F.R. §§401, et seq.