Section 218-RICR-20-00-2.14 - Resources2.14.1Non-Exempt ResourcesA. No family shall be eligible for cash assistance if the combined value of its available resources (reduced by any obligations or debts with respect to such resources) exceed five thousand dollars ($5,000.00). Eligibility is denied or terminated if the value of available non-exempt resources exceeds the five thousand dollar ($5,000.00) limit.B. Verification of resources - Verification will continue to be required for all resources in excess of three thousand dollars ($3,000.00) up to the resource limit of five thousand dollars ($5,000.00). The DHS will accept the household's self-attestation of resources less than three thousand dollars ($3,000.00) unless the information provided appears to be questionable or contradictory to prior statements made by the household, or if information on the application is inconsistent with the statements made by the applicant/recipient.C. Resources are considered available both when actually available and when the applicant/recipient has a legal interest in a liquidated sum and has the legal ability to make such sum available for support and maintenance.1. However, in the event of joint ownership of an asset, there is an opportunity to rebut the presumption of ownership of the resource. (Refer to 210-RICR-40-00-3). The RIW Administrator, assistant administrator or RIW supervisor is consulted when there is a question of ownership of resources that cannot be otherwise resolved.D. The applicant's resources include those of the spouse in the home (with the exception of persons applying in loco parentis and not applying for assistance for his/her own needs). A child's resources include his/her own and those of the eligible or ineligible parent(s) and stepparent with whom s/he is living.E. The sponsored non-citizen's resources include the deemed resources of the sponsor and sponsor's spouse (see §2.17.2 of this Part). However, in a joint RI Works program/SSI household, the resources which are solely the SSI recipient's are not counted for RI Works purposes.F. The information the individual supplies on the Application for Assistance, both at application and redetermination about his/her current or terminated resources, is documented through bank books, property records, and other similar documentary sources.G. The agency representative must advise the recipient to inform the agency of any changes in his/her resources that may affect his/her eligibility. Such changes are noted in the electronic case record.H. Trusts 1. Any funds in a trust, and the income produced by that trust to the extent it is not available to the assistance unit, shall be considered inaccessible to the assistance unit if all of the conditions listed below are met by the trust arrangement. a. No assistance unit member has the power to revoke the trust arrangement or change the name of the beneficiary.b. The trustee administering the trust is either(1) A court or an institution, corporation, or organization that is not under the direction or ownership of any assistance unit member; or(2) An individual appointed by the court who has court imposed limitations placed on his or her use of the funds; or(3) An individual whose responsibilities are governed by the terms of the irrevocable trust, and who is furthermore not under the direction or control of any assistance unit member(s) in any way.c. Trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction, or influence of an assistance unit member.d. The Department may request that the trustee execute a statement that s/he/it is not under the direction or control of any member(s) of the assistance unit.2.14.2Excluded ResourcesA. The amount of real and personal property that can be retained by each assistance unit may not be in excess of five thousand ($5,000.00) dollars equity value excluding the resources detailed in §2.14.2 of this Part.B. Real Property that is the Home1. Real property that is excluded includes:a. The home owned and occupied by a child, parent, relative or other individual. The home exclusion applies to any land that appertains to the home and any other buildings located on such land, for example, a barn or a shed. To appertain to the home, the real property must adjoin the plot on which the home is located and not be separated from it by intervening real property owned by others.b. Property owned by a husband and wife if the deed indicates the property is held by them as tenants by the entirety and if the property is not the home of the assistance unit (as defined above) and if the spouse of the applicant/recipient refuses to sell his/her interest in the property. To ascertain if these conditions are met, the DHS worker must verify, by examination of the deed, that the parties own the property as tenants by the entirety and determine if the parties are still married because a divorce (but not a legal separation) automatically dissolves a tenancy by the entirety. If the three (3) conditions specified above appear to be met, the agency representative must refer the case, through the RIW Administrator, assistant administrator or RIW supervisor, to the Department's Office of Legal Services for a determination of the property's excludability. The referral should include copies of the deed to the property and any other relevant documents.C. Real Property other than the Home 1. In addition to the exclusion of the home in which the assistance unit is living, and property that is excludable as specified in §2.14.2 of this Part, real property that is excludable is subject to the following provisions: a. The family must make a good faith effort to sell the property, generally by listing it with a licensed realtor. The realtor must indicate in a signed statement that the asking price is consistent with the property's current Fair Market Value (FMV). If the family chooses to sell the property independently, they must demonstrate a good faith effort, for example, by adequate newspaper advertising of the property for sale. Any method of disposal other than listing with a realtor is subject to review and approval by the RIW Administrator, assistant administrator or RIW supervisor before it can be excluded. (1) The status of said property and the family's good faith effort to sell it must be reviewed on a quarterly basis.b. Any aid payable to the family for any such period shall be conditioned upon such disposal within six (6) months of the date of application and any payments of such aid for that period shall be considered overpayments to the extent that they would not have occurred at the beginning of the period for which such payments were made. All overpayments are debts subject to recovery in accordance with §2.19.1 of this Part. Any month for which there is no net payment will not count toward the time limit.c. The family must notify the agency upon executing a purchase and sale agreement, a copy of which is submitted to the DHS worker. Further, within five (5) days of the closing, the family must provide the DHS worker with a copy of the closing or settlement sheet.d. The amount of assistance to be repaid cannot exceed the net proceeds from the sale. After ascertaining the amount of cash and medical assistance expended and the net proceeds from the sale, the DHS worker, in consultation with the supervisor and, as needed, the RIW Administrator, assistant administrator or RIW supervisor determines the amount of the overpayment, if any, to be repaid and whether continuing eligibility exists.e. If repayment is necessary, guidance for transmission will be found in a DHS procedural transmittal.f. If the net proceeds from the sale of the property, together with all other resources at the beginning of the disposal period, are within the allowable resource limit, no repayment is warranted.D. Other Income-Producing Property 1. Income-producing property other than real estate is excluded.2. Examples include but are not limited to equipment such as farm tools, carpenter's tools, and vehicles used in the production of goods and services necessary for the family to earn a living. 3. If the property has been used by the applicant/recipient to generate income and the reasonable expectation exists that it will be used for that purpose in the foreseeable future, the property is not subject to the five thousand dollars ($5,000.00) resource limitation.E. Factors Determining Exclusion 1. In making the determination that income-producing property is excluded, the agency representative evaluates such factors as: a. The client's present or future capacity to utilize the property to become self-supporting;b. The suitability of the property to serve as one of the means to this goal; andc. The length of time expected to elapse before the property might be put to use in the individual's employment plan.2. The RIW Administrator, assistant administrator or RIW supervisor is consulted when there is a question of whether such property should be excluded.F. Income-Producing and Other Vehicles1. The following shall not be counted as resources of the family:a. One vehicle for each adult household member but not to exceed two (2) vehicles per household, andb. The value of vehicles used primarily for income-producing purposes is excluded. Such vehicles include but are not limited to:(1) A taxi, truck, or fishing boat;(2) A vehicle which annually produces income consistent with its fair market value, even if only used on a seasonal basis;(3) A vehicle necessary to transport a family member with a physical disability where the vehicle is specially equipped to meet the specific needs of the person with a disability or if the vehicle is a special type of vehicle that makes it possible to transport the person with a disability; and(4) A vehicle used as a family's home.G. Exclusion of Household Furnishings Household furnishings and appliances, clothing, personal effects, and keepsakes of limited value are excluded.
H. Exclusion of Burial Plot One (1) burial plot or space for each member of the assistance unit is excluded. A burial space is any conventional gravesite, crypt, mausoleum, urn, or other repository customarily used for the remains of a deceased person.
I. Exclusion of Funeral Agreement1. A bona fide funeral agreement, not to exceed one thousand dollars ($1,000.00) of equity value for each member of the assistance unit, is excluded. A bona fide or good faith funeral agreement is a cash resource reserved authentically and solely to meet the funeral expenses of the beneficiary. It must not constitute a mere shelter for funds that would otherwise count toward the five thousand dollars ($5,000.00) resource limit. 2. Evidence that funds in a purported funeral agreement are being tapped for other than their avowed purpose is a contraindication that the agreement is bona fide. Every funeral agreement must be submitted to and, if appropriate, approved by the RIW Administrator, assistant administrator or RIW supervisor before it can be excluded as a resource. Further, at each recertification, the DHS worker must review each excluded funeral agreement. Any new, significant information bearing on the agreement is submitted to the RIW Administrator, assistant administrator or RIW supervisor for evaluation and determination of its continued excludability.J. Resources Excluded by Law 1. Resources excluded by law in determining need and the amount of assistance include:a. For twelve (12) months from the date of the receipt of the refund: (1) Any portion of the refund of Federal income taxes, made to the family by reason of 26 U.S.C. § 32 of the Internal Revenue Code relating to the earned income tax credit or earned income tax rebate, and any advance payment of such earned income credit made to such family by an employer;(2) The total amount of a refund received after December 31st, 2009, consistent with provisions of the Unemployment Insurance Reauthorization and Job Creation Act of 2010, Pub. Law 111-312, regardless of whether the refund is the result of a refundable credit, over-withholding, or both. This provision established in the Unemployment Insurance Reauthorization and Job Creation Act of 2010, Pub. Law 111-312 shall not apply to any amount received after December 31st, 2012.b. The resources of any family member receiving SSI;c. Funds awarded under 20 C.F.R. § 416.1234 to the Red Lake Bank of Chippewa Indians.d. Funds awarded under 20 C.F.R. § 416.1234 to the Assiniboine Tribe of the Fort Belknap Indian Community, and the Assiniboine Tribe of the Fort Belknap Indian Reservation.e. Effective July 1, 2021, any Veteran's Disability Pension benefits received as a result of any disability sustained by the veteran while in the military service (see R.I. Gen. Laws § 40-5.2-10, as amended by Article 13).2.14.3Determination of ResourcesA. The resource limit per assistance unit is five thousand dollars ($5,000.00) for all non-excluded resources. The DHS will accept self-attestation from households who report total resources below three thousand dollars ($3,000.00). However, if this information is discrepant with what is known to the Department, additional documentation may be requested from the applicant/recipient.B. Resources which count toward the five thousand dollars ($5,000.00) resource limit include, but are not limited to: 2. Personal property which includes liquid resources, such as cash, stocks, bank accounts, automobiles and non-essential items. C. When the non-excluded resources exceed the resource limit, the applicant is ineligible or assistance is discontinued.D. Resources are considered available both when actually available and when the applicant/recipient has a legal interest in a liquidated sum and has the ability to make such sum available for support and maintenance. However, in the event of joint ownership of bank accounts, there is an opportunity to rebut the presumption of ownership of the joint bank account. See §2.14.3 of this Part for further discussion of cooperation with regard to pursuit of resources.E. Real Property 1. Real property is land and includes houses or objects permanently attached to the land. The equity value of any non-excluded real property owned by the assistance unit must be counted toward the five thousand dollar ($5,000.00) resource limit.2. In determining the value of the resource, equity value is defined as the current Fair Market Value (FMV) minus encumbrances. (If the value of the real property, when added to that of the unit's other resources, raises their total value above the five thousand dollars ($5,000.00) limit, see §2.14.2 of this Part for conditions under which the property may be excluded.)3. Evidence of ownership includes any of the following: the deed, current mortgage statement, assessment notice, the recent tax bill, or a report of title search. If not available, the DHS worker must obtain the information from the Recorder of Deeds, by telephone or other means.4. The supervisor must consult the RIW Administrator, assistant administrator or RIW supervisor in assessing the value of property if the value is questionable in relation to the five thousand dollar ($5,000.00) resource limit.F. Personal Property 1. Personal property includes liquid resources, such as cash, stocks, bonds, mutual funds, money market accounts, certificates of deposit (C.D.s), bank and credit union accounts, IRAs, Keough plans, vehicles, and non-essential items.2. Liquid Resources a. Liquid resources are those properties in the form of cash or other financial instruments which are convertible to cash and include bank and credit union savings and checking accounts, stocks, bonds, mutual funds, time deposit shares, money market accounts, promissory notes, mortgages, and similar holdings.b. The value of any liquid resources must be counted toward the five thousand dollar ($5,000.00) resource limit. If liquid resources exceed the five thousand dollar ($5,000.00) resource limit, alone or in combination with other resources, the applicant is ineligible or assistance is discontinued.3. Medical Insurance a. If a family has any medical insurance, such as Blue Cross/Blue Shield, Neighborhood Health Plan of RI, United Health Plan of NE, Tufts, Federal Medicare (Part A, Part B), Delta Dental or any other medical insurance, this is identified as a resource for medical payment, but is not considered an eligibility factor in the determination of eligibility.b. The medical resource must be noted on the Application for Assistance.4. Valuation of Vehicles a. Vehicle means a passenger car or other motor vehicle used to provide transportation of persons or goods.b. Each vehicle owned by the household is handled as follows:(1) First, determine if the motor vehicle is excluded under §2.14.2 of this Part. If the vehicle(s) is excluded, no further action is required.(2) If the vehicle is not excluded, count the vehicle's equity value (which is fair market value less encumbrances) towards the household's resource limit of five thousand dollars ($5,000.00).5. Nonessential Items a. Usually accepted household items are exempted. However, when there is evidence that the applicant possesses household or personal items of unusual or exceptional value, there should be verification of this resource by establishing the fair market price and equity value for it. Items of unusual value are those not normally used to maintain an adequate standard of comfort and convenience for the household.b. The value of recreational boats, art objects, or valuable collections are luxury items of unusual value represent resources that must be added to all other total resources to determine whether the resources are within the five thousand dollar ($5,000.00) limit. It is the current fair market value of the item rather than the item itself that determines the unusual value.c. The statement on the Application for Assistance (indicating the applicant does not own items of unusual value) referring to other resources owned by the applicant/recipient will be accepted without further development unless there is evidence to the contrary (e.g., information from other sources, or answers to other questions on the application that cast doubt on the validity of the response).d. If the applicant/recipient owns a valuable resource, then the current FMV must be determined. Any reliable and reasonable method may be used to establish and verify the current FMV, e.g., sales slips, insurance, prior appraisals, or contacts with local merchants.e. If the total equity value is under the five thousand dollar ($5,000.00) limit, this amount must be added to all other countable resources to determine whether the total resources are within the five thousand dollar ($5,000.00) limit. If the value of the assistance unit's items exceeds the five thousand dollar ($5,000.00) resource limit, the applicant/recipient is ineligible. 6. Resources of Ineligible Household Members All the non-excluded resources of a disqualified individual, parent, or child, are counted in determining the assistance unit's eligibility and payment amount.2.14.4Transfer of ResourcesA. Initial eligibility is not affected unless an applicant sold or transferred property in the month of application.B. Resources Transferred in Application Month1. Receipt of monies from resources disposed of by an applicant in the month of application is treated as a resource. The proceeds are verified and a determination made as to whether the proceeds are within the eligibility limit for that particular resource.2. If it exceeds the limit, eligibility does not exist in that month.3. Eligibility can be reestablished in a later month when resources are brought within the resource limit.2.14.5Assets Acquired After Receipt of RIWIf a recipient inherits real property which is being used, or is to be used by the recipient as a home, there is no bar to continuing eligibility. The equity value of any other real property must be considered, together with all other countable resources, in determining whether the household's resources are within the five thousand dollar ($5,000.00) resource limit.
2.14.6Recovery of Resources After DeathA. Assistance provided to a recipient is not subject by policy to recovery after the death of a recipient. However, in certain situations, the law provides for recovery by the Department.B. These situations must be referred to the RIW Administrator, assistant administrator or RIW supervisor and forwarded to the Third (3rd) Party Liability Unit for a decision on action.218 R.I. Code R. 218-RICR-20-00-2.14
Adopted effective 1/6/2019
Amended effective 2/16/2020
Amended effective 2/27/2022
Amended effective 11/11/2022
Amended effective 8/26/2023
Amended effective 11/4/2023