N.J. Admin. Code § 10:70-5.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 10:70-5.2 - AFDC-related cases; resources

(a) The resource provisions contained in this section shall apply to AFDC-related applicants and beneficiaries under this chapter.

(b) Available resources shall include cash and other forms of assets that can produce income immediately obtainable to meet the needs of the eligible unit, including:

1. Real or personal property that is within the control of one or more members of the eligible unit, or to which such members may have a valid property interest; and

2. Benefits and other contributions of support which are available to one or more of the members of the eligible unit.

(c) Resources described in this rule shall be either countable or exempt.

1. All nonexempt property shall be counted in the determination of resource eligibility.

2. Exempt resources shall not be subject to any requirement for liquidation. When any resource is not or is no longer exempt, it shall be evaluated as a countable resource in accordance with this rule and considered in the determination of eligibility under this chapter.

(d) Countable resources shall be evaluated by their equity value, which is the current market value of the resource, less any encumbrances.

(e) The total equity value of all countable resources (including savings) shall not exceed the applicable amount specified in 10:70-5.1.

(f) Bank accounts in which the names of the owners are stated in the conjunctive ("and" accounts) shall be presumed to be in the possession of the eligible family member, in proportion to the number of owners listed on the account. This presumption may be rebutted if the eligible family member and/or the other owners of the account demonstrate to the Division that actual ownership of the funds is in a different proportion. If it can be demonstrated that the funds in the account are not legally owned by an eligible family member, such funds shall not be counted toward the resource maximum specified in 10:70-5.1.

(g) Bank accounts in which the names of the owners are stated in the disjunctive ("or" accounts) shall be presumed to be in the complete possession of the eligible family member, regardless of the source of the funds in the account. This presumption may be rebutted if the eligible family member and/or the other owners of the account demonstrate to the Division that actual ownership of the funds is in a different proportion, based on evidence of contributions by each party to the funds on deposit. If it can be demonstrated that the funds in the account are not legally owned by an eligible family member, such funds shall not be counted toward the resource maximum specified in 10:70-5.1.

(h) Exempt resources shall not be subject to liquidation requirements. At the time any such resources are determined no longer to be exempt, they shall be evaluated in accordance with (a) through (g) above. The exempt resources of an eligible unit shall be as follows:

1. Real property (house) owned by the eligible unit, used as a home by the eligible unit, together with so much of the land on which the house stands as is reasonably necessary for the maintenance of the house. Such property may remain in exempt status during the temporary absence of the entire eligible unit for a period of up to four months, at which time the Division shall review the status, and, if it is demonstrated to the Division's satisfaction that the eligible unit will return from their absence to use the property as their home within the four months following the initial period, may allow the property to remain in exempt status for an additional four months. Absence through the entire four-month or eight-month period shall be deemed to be permanent and shall result in the property being removed from exempt status;

2. Personal property which is used or is likely to be used by the eligible unit, including:

i. House furnishings and clothing in regular use. House furnishings and clothing in storage may be deemed to be exempt, if a reasonable plan for their use exists; and

ii. Personal effects if regularly used or of small intrinsic value. Personal effects of larger value which are not regularly used and are not essential to the physical health and safety of the eligible unit shall not be exempt;

3. One motor vehicle, the equity value of which does not exceed $ 9,500. Any excess equity value of a motor vehicle and the full equity of any other motor vehicle shall be countable toward the resource limit specified in 10:70-5.1.

i. The equity value of the vehicle shall be determined by the value of such vehicles as indicated in the Kelley's Blue Book, internet website http://www.kbb.com. The basic value of the vehicle shall not be increased by adding the value of low mileage or other factors such as optional equipment. If the vehicle is a new vehicle, which is not listed on the Kelley website, the Division shall determine the wholesale value by some other means such as, but not limited to, contacting a car dealer that sells that make of a vehicle.

ii. If a vehicle is especially equipped with apparatus for the handicapped, the apparatus shall not increase the value of the vehicle. The Kelley Blue Book internet website value shall be assigned as if the vehicle were not so equipped;

4. Livestock, machinery, tools, equipment and stock-in-trade which serve to produce some net income in cash or in kind or which serve as an incentive for self-help. Livestock or property owned or used by a child in connection with a group or school activity, such as 4-H, shall also be exempt;

5. Any asset, real or personal, the liquidation of which would produce no net revenue to the eligible unit;

6. Resources designated for special purposes, as follows:

i. Relocation adjustment payments which are made pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ( P.L. 91-646) by public agencies and area development agencies engaged in urban renewal or by housing development projects;

ii. Any Highway Relocation Assistance paid under the Federal-Aid Highway Act of 1968;

iii. For any household participating in the Food Stamp Program of the U.S. Department of Agriculture, the value of the coupon allotment; or

iv. Funds held in trust for a member of any Indian tribe under Public Law 92-254 or 93-134, or funds which are tax-exempt positions as payments made pursuant to Public Law 92-203, the Alaska Native Claims Settlement Act;

7. Loans for specific purposes and personal loans, as follows:

i. Loans for specific purposes, such as loans and grants which are not to be used to meet current living costs and which are held and used in accordance with the conditions of the loan. For example: loans made by the Farmers Home Administration, U.S. Department of Agriculture, under Title III of the Economic Opportunity Act, and loans made by the Farmers Home Administration under provisions in Title V of the Housing Act of 1949, as amended; or

ii. Personal loans, when such loans are evidenced by a document, signed by the client and the lender, and which state the amount of the loan and terms of repayment;

8. Funds received in repayment of verified costs of collection of a pending claim when the costs were incurred during a period of receipt of AFDC-related Medicaid;

9. Burial plots (limited to one for each member of the eligible unit) and bona fide funeral agreements to the extent that the equity value of any agreement does not exceed $ 1,500 for each member of the eligible unit.

i. Burial plots are conventional gravesites, crypts, mausoleums, urns or other repositories which are customarily and traditionally used for the remains of deceased persons.

ii. Funeral agreements are contractual arrangements to provide for the costs connected with burial, cremation, or other funeral arrangements; and

10. Prepaid irrevocable funeral trust funds, which are funds in an irrevocable trust or other irrevocable arrangement which are available for funeral and burial expenses, held in an irrevocable funeral contract and irrevocable funeral trust, or an amount in an irrevocable trust which is specifically identified for funeral and burial expenses.

(i) Members of the eligible family shall take all necessary and reasonable action to avail themselves of funds for support from others who owe or may owe money to them or who are holding funds for them. Any funds made available by such action shall be considered as income to the eligible family, except as follows:

1. The county board of social services shall not terminate eligibility when the proceeds from the sale of an exempt resource are promptly reinvested in another exempt resource of the same type. Funds designated by the client as being reserved for such reinvestment, including any interest accrued during the period, may be held for up to three months, provided the funds are held in escrow or are otherwise unavailable for daily living expenses. The three-month period may be extended upon written approval of the Division of Medical Assistance and Health Services.

(j) When a trust fund exists for a member of the eligible family, the county board of social services shall determine whether or not the funds are currently accessible.

1. If accessible, the funds represent a source of funds for support and shall be considered in determining eligibility.

2. If not accessible, the following shall apply:

i. When a trust fund is not currently accessible and it exists at the time of application, the client shall, as a condition of eligibility, make a bona fide presentation of a petition to the appropriate court for release of the funds for current and future support. The agency shall assist the client if necessary.

ii. When a trust fund is not currently accessible and the trust fund came into being during the term of the assistance case, the agency shall present a petition to the appropriate court for release of funds for current and future support. The client shall, as a condition of continuing eligibility, provide whatever cooperation as may be necessary in the presentation of the petition.

N.J. Admin. Code § 10:70-5.2

Repeal and New Rule, R.2006 d.364, effective 10/16/2006.
See: 38 N.J.R. 2368(a), 38 N.J.R. 4480(c).
Section was "AFDC-related cases".