Section 363.140 - Noncountable AssetsThe following assets are not countable when determining the total value of assets available to a household.
(A)Home and Lot. The home and surrounding property that is not separated from the home by intervening property owned by others is noncountable, including: (1) Property separated from the home by a public right of way, such as a road.(2) The home and surrounding property when temporarily unoccupied for reasons of employment, training for employment, illness, vacation, or uninhabitability caused by casualty or natural disaster, provided that the household intends to return.(3) The value of a lot purchased, or in the process of being purchased, to build a home if the household does not already own a home and, if the new home is partially completed, the value of the partially completed home.(4) Household belongings such as furniture, appliances, household decorations, linens and cookware; personal belongings such as jewelry, books and toys, even if of more than usual value.(5) Property to which the household has no ready access, such as property that is the subject of legal proceedings (e.g., probate, divorce suits, etc.), and irrevocable trust funds that were placed in trust at least 12 month before application for SNAP benefits.(B)Household and Personal Goods, Life Insurance and Pension Funds. (1) Household goods and personal effects, including one burial lot per household member and the value of a prepaid funeral arrangement, not to exceed $1,500, are noncountable assets. A prepaid funeral arrangement may include a contract with a funeral director or a separately identifiable trust fund. Use of any portion of this asset is countable if used for purposes other than funeral or burial arrangements in accordance with 106 CMR 363.130.(2) The cash value of life insurance policies is noncountable provided the insurance policies are not cashed.(3) Pension funds are noncountable assets. These include, but are not limited to, pension or traditional defined-benefits plans, 401(k)s, 501(c)(18)s, 403(b)s, 457s, Federal Employee Thrift Savings plans, Keogh plans, Individual Retirement Accounts (IRAs), Roth IRAs, Simple IRAs, Simplified Employer plans, Profit Sharing plans, and Cash Balance plans.(C)Education Savings Accounts. Section 529 qualified tuition programs, and Coverdell education savings accounts are noncountable assets.(D)Vehicles. Vehicles, whether licensed or unlicensed, are noncountable. Vehicles include, but are not limited to, cars, trucks, boats and tractors.(E)Income Producing Property. Income producing property is a noncountable asset when it is essential to employment or self-employment, or when it annually produces income consistent with its fair market value. The income derived from such property, however, shall be countable. (1) Property essential to the employment or self-employment of a household member includes work-related equipment such as the tools of a tradesperson or the machinery of a farmer, and property such as farm land. Property essential to the self-employment of a household member engaged in farming shall continue to be excluded for one year after the household member terminates his or her self-employment from farming. Property that is noncountable because it is essential to employment or self-employment need not produce income consistent with its fair market value.
(2) Property that annually produces income consistent with its fair market value, even if used only on a seasonal basis, is noncountable, including rental and vacation homes. Income shall be considered consistent with fair market value if the income produced is as much as the property could reasonably be expected to produce and is comparable with income produced by similar property in the same area. When it is necessary to determine if property is annually producing income consistent with its fair market value, the worker shall contact local realtors, local tax assessors, the Small Business Administration, or other similar sources to determine the prevailing rate of return. An example of the prevailing rate of return is square-foot rental for similar usage of property in the area.
If the Department determines that the property is not annually producing income consistent with its fair market value (for instance, the property is being leased for a token payment), the equity value of the property shall be counted as an asset. Equity value shall be determined in accordance with 106 CMR 363.130(E).
Installment contracts for the sale of land or buildings must annually produce income consistent with their fair market value in order to be considered a noncountable asset. This shall also apply to the value of property sold under the installment contract or held as security in exchange for a purchase price that is consistent with the fair market value of the property.
(F)Inaccessible Assets. (1)Requirements. An inaccessible asset is not counted when determining eligibility for SNAP benefits. Inaccessible assets include, but are not limited to: security deposits on rental property or utilities, property in probate, property that the household is making a good faith effort to sell at a reasonable price and that has not been sold, and irrevocable trust funds.
Any funds in a trust, and the income produced by that trust, to the extent it is not available to the household, shall be considered inaccessible to the household if all of the conditions listed below are met:
(a) The trust arrangement is not likely to terminate during the certification period and no member of the household has the power to revoke the trust or change the name of the beneficiary during the certification period:(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 household member; or2. an individual appointed by the court who has court-imposed limitations placed on his or her use of the funds; or3. an individual whose responsibilities are governed by the terms of the irrevocable trust and who is not under the direction or control of any household member;(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 a member of the household; and(d) Funds held in an irrevocable trust shall be considered inaccessible to the household if the funds are either established from the household's own funds, and the trustee uses the funds solely to make investments on behalf of the trust or to pay the educational or medical expenses of any person named by the creator of the trust, or established from nonhousehold funds by a nonhousehold member.(2)Verifications. Verification of the inaccessibility of an asset is mandatory at application, recertification or whenever circumstances regarding the accessibility of the asset have changed. The following documents shall be used, as appropriate, to verify inaccessibility: (a) A copy of the original legal instrument that established the inaccessibility of the asset;(b) Relevant legal or financial statements that document the inaccessibility of the asset, if the original legal instrument is not available;(c) Documents that demonstrate that the household member has unsuccessfully attempted to convert the assets into cash;(d) Any other documents that show inaccessibility;(e) Documents showing how the holder's name appears on the bank account or security. 1. If the account is titled A or B, both individuals have full access to the account.2. If the account is titled A and B, neither individual has access to the account without the consent of the co-holder. The household member must submit a written statement from the co-holder denying such consent. If the household member is unable to obtain a written statement of the co-holder, he or she may submit an affidavit stating that he or she does not have the co-holder's consent.3. If the account is titled A in trust for B, or A for B, A has full access to the account and B has no access to the account;4. If the account title contains only one name, that individual has full access to the account;(f) A copy of the trust or other documentation that verifies it is irrevocable and meets all conditions provided in 106 CMR 363.140(F)(1)(b); and(g) Lack of access to a joint or individual account may also be demonstrated by proof that the household member does not possess the bank book (or term certificate) and cannot obtain it and that bank policy prohibits withdrawal of the funds without the passbook. If the household member demonstrates lack of ownership, inaccessibility to the asset or both, the asset is not countable in the determination of eligibility.
(G)Assets of Nonhousehold Members. The assets of a nonhousehold member shall be disregarded when determining the eligibility of the remaining household members except when the nonhousehold member is a disqualified nonhousehold member in accordance with 106 CMR 361.230(D): Disqualified Individuals. The assets of disqualified nonhousehold members must be considered in accordance with 106 CMR 365.500: Households Living with Non-household Members. The noncountable assets listed in 106 CMR 363.140 are also exempt for disqualified nonhousehold members.
(H)Other Noncountable Assets. The following assets are noncountable:(1)Disaster Payments. Any governmental payments that are designated for the restoration of a home damaged in a disaster and that are subject to a legal sanction if the funds are not used for that purpose. Examples of these payments include, but are not limited to, payments made by the Department of Housing and Urban Development through the Individual and Family Grant Program, disaster loans or grants made by the Small Business Administration or payments precipitated by an emergency or major disaster under the Disaster Relief Act.;(2)Assets Prorated as Income. Assets that have been prorated as income, such as student loans or assets of self employed persons;(3)Home Produce. Home produce grown or preserved by the household for its own consumption;(4)Certain Native American Lands. Native American lands held jointly with the tribe, or land that can be sold only with the approval of the Department of the Interior's Bureau of Indian Affairs are noncountable. Lands held in trust for Native Americans; property purchased with payments made to Native Americans under Public Laws 92-254, 93-134, 94-540; and funds distributed to, or held in trust for, members of any Indian tribe pursuant to a judgment of the Indian Claims Settlements or the Secretary of the Interior under Public Laws 94-114, 93-134, 96-420, 97-458, 98-64 and 102-71;
(5)Educational Loans, Grants, and ScholarshipsAny financial assistance paid to a student such as a financial aid package, grant, loan or scholarship for the purposes of obtaining a degree or certificate from an institution of higher education is a noncountable asset. Permissible purposes may include, without limitation, room and board, tuition and fees, and other ancillary costs associated with the costs of obtaining a degree or certificate at an institution of higher education.
(6)Assets Exempt by Law. Certain assets are noncountable for SNAP purposes by a specific provision in federal law, including, but not limited to: (a) Coupons under a WIC Demonstration Project that can be exchanged for food at farmers' markets;(b) Highway Relocation assistance payments, Urban Renewal Assistance payments, disaster relief payments used for relocation, and payments from private agencies used for relocation;(c) State and federal earned income credits (EIC), whether received as an advance payment or as part or all of an income tax refund, in the month of receipt and the following month;(d) Payments or allowances made to or on behalf of a household for energy assistance under any federal, state, or local law. These payments or allowances must be clearly identified as energy assistance by the legislative body authorizing the program or providing the funds;(e) Nonliquid assets with a lien in place as a result of taking out a business loan if the household is prohibited by the security or lien agreement with the lienholder (creditor) from selling the assets;(f) Payments to eligible individuals of Japanese ancestry or their survivors under the Civil Liberties Act of 1988, and payments for eligible Aleuts or their survivors under the Aleutian and Pribilof Islands Restitution Act, Public Law 100-383;(g) Agent Orange Settlement Fund payments made to Vietnam veterans or their survivors, in accordance with Public Law 101-201, effective January 1, 1989;(h) Payments made to individuals because of their status as victims of Nazi persecution in accordance with Public Law 103-286;(i) Assistance to children received under the National School Lunch Act or the Child Nutrition Act;(j) Crime victim compensation payments under the Crime Act of 1984;(k) Payments (from $200-$1200 per month) to the child of a Vietnam veteran disabled in any way by spina bifida; and(l) Payments made under P.L. 101-426, Section 6(h)(2), the Radiation Exposure Compensation Act;(7)Assets of Certain Household Members. Assets of certain household members are noncountable as follows: (a) The assets of SSI and/or TAFDC household members shall be considered exempt for SNAP purposes if the household members receive benefits under one or more of the following titles of the Social Security Act: Title XVI (SSI); Titles I, X, or XIV for the aged, blind, or disabled; or Title IV-A (TANF); and(b) The assets of individuals for whom state and/or federal foster care maintenance payments are made, including assets of the child of the foster child when the foster care maintenance payment includes the child of the foster child;(8)TAFDC/FEP - Individual Asset Account. Funds maintained in an Individual Asset Account (IAA) as part of the TAFDC Full Employment Program (FEP) shall be excluded until receipt of such funds upon termination of FEP employment. Funds received from the IAA upon termination of FEP employment shall be countable; and(9)Reimbursements. Any portion of a Workers' Compensation, property damage, personal injury, Compensation to Victims of Violent Crimes Act, death settlement or award, except for compensation for lost wages, that is received as a reimbursement for specified items and used to pay for such items.(I)Treatment of Exempt Funds.(1) Exempt funds kept in a separate account shall retain their exemption for an unlimited period of time.(2) Exempt funds that are commingled in an account with other funds shall retain their exemption for six months from the date they are commingled. After six months from the date of commingling, all funds in the commingled account shall be counted as an asset. An exception is the assets of students and self-employment assistance units exempted by 106 CMR 363.140(H)(2) which retain their exemption for the period of time their income is prorated.Amended by Mass Register Issue 1330, eff. 1/13/2017.Amended by Mass Register Issue 1522, eff. 5/24/2024.