Rule 23-103-1.16 - Converted ResourcesA. If an individual sells, exchanges or replaces a resource, what he receives in return is a resource that has been converted from one type of resource to another.B. Examples of converted resources are:1. A lot with equity value of $5,000.00 is sold and the money is deposited into a money market account.2. A life insurance policy is cashed in and the proceeds are used to purchase a pre-need burial contract.C. Handling Changes in a Converted Resource. When a resource changes form, it may also change:1. From an excluded resource to a countable one,2. From a countable resource to an excluded one or3. To something that is not considered a resource for Medicaid purposes. a) Example: An excluded vehicle is sold and proceeds are deposited into a checking account. The money received is a countable resource, rather than income.b) Example: A life insurance policy with a face value of $15,000.00 and a countable cash surrender value of $1,000.00 is cashed in and the proceeds are used to purchase a cemetery plot which is excluded in the resource determination.23 Miss. Code. R. 103-1.16
Social Security Act §1902 (r)(2); 42 CFR §435.601(b) (Rev 1994).