440 Ind. Admin. Code 7.5-3-5

Current through December 4, 2024

Section 440 IAC 7.5-3-5 - Components of the resident's income and assets

Authority: IC 12-21-2-3

Affected: IC 12-21-2-3

Sec. 5.

(a) The following are considered the resident's income for purposes of the resident living allowance:

(1) Wages.

(2) Interest paid on accounts.

(3) Rental income.

(4) Interest or dividends paid on certificates, bonds, or securities.

(5) Cash benefits, including the following:

(A) Insurance payments.

(B) All entitlement programs from state or federal sources.

(C) Pensions from union or other employment.

(D) Routine cash gifts from family or others.

(b) The following are requirements concerning trusts:

(1) Routine distributions from a trust for the use of an individual or on behalf of the individual by the administrator of the trust shall be considered income to the individual.

(2) Lump sum distributions from a trust may be considered liquid assets.

(A) The conditions and terms of trusts shall be disclosed in full by providing a copy of the trust instrument to the agency in order to determine if the assets of the trust shall be available to meet the individual's obligation to pay for the cost of residential services.

(B) All distributions from the trust shall be reported to the agency by the trustee to determine if the distributions have created income or assets for purposes of this rule.

(c) The following are considered liquid assets for purposes of the resident living allowance program:

(1) The excess of life insurance policies with a cash surrender value of more than three thousand dollars ($3,000).

(2) Savings accounts.

(3) Checking accounts.

(4) Certificates of deposit.

(5) Securities.

(6) Bonds.

(7) The contents of safety deposit boxes held in the name of the individual, or in common, or jointly with others.

(d) Assets shall be valued at their current market value.

(e) Unless otherwise demonstrated, jointly held assets shall be equally prorated among all named owners.

440 IAC 7.5-3-5

Division of Mental Health and Addiction; 440 IAC 7.5-3-5; filed Jun 10, 2002, 2:25 p.m.: 25 IR 3137; readopted filed Nov 5, 2008, 3:50 p.m.: 20081119-IR-440080742RFA; readopted filed Jul 21, 2011, 9:39 a.m.: 20110817-IR-440110249RFA

Readopted filed 6/19/2017, 10:11 a.m.: 20170719-IR-440170221RFA

Readopted filed 5/10/2023, 2:25 p.m.: 20230607-IR-440230142RFA