A-1230, Types of Resources

 Revision 03-3; Effective April 1, 2003

 

 

A—1231 Accounts

Revision 07-4; Effective October 1, 2007

 

 

A—1231.1 Bank Accounts

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Advisors must count the cash value of checking and savings accounts unless exempt for another reason.

Related Policy

Payments Exempt as a Resource While Being Considered Income, A-1243
Inaccessible Resources, A-1241

 

 

A—1231.2 Debit Accounts

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Advisors must count the cash value of benefits in a debit account, less amounts deposited in the current month, as a resource. Government benefit payments may be deposited into a debit account. Advisors must verify the balance in the account using the most current information.

The most common debit accounts established for deposit of government benefits are the:

  • Electronic Benefit Transfer (EBT) cash accounts for TANF benefits;
  • unemployment insurance benefits (UIB) debit accounts;
  • Texas debit card accounts for child support payments, Office of Attorney General (OAG);
  • debit card accounts for child support payments from other states; and
  • Direct Express card debit accounts for Social Security; Retirement, Survivors and Disability Insurance (RSDI); or Supplemental Security Income (SSI) benefits payments.

This list is not intended to be all inclusive as more agencies and businesses move toward the use of debit cards to issue benefits.

Account inquiry is accessible to:

  • TANF recipients by calling the Lone Star Help Desk automated voice response system at 1-800-777-7EBT (1-800-777-7328);
  • UIB recipients online at https://www.usbankreliacard.com/ or at any automated teller machine (ATM) free of charge;
  • child support recipients online at www.EPPICard.com;
  • Social Security recipients online at www.USDirectExpress.com, by calling 1-888-741-1115, or balance information may be obtained free of charge at any ATM that displays the MasterCard® logo.

Exception: See A-1248, Resources of TANF and SSI Recipients.

Related Policy

Retirement, Survivors, and Disability Insurance (RSDI), A-1324.16
Supplemental Security Income (SSI), A-1324.17
Temporary Assistance for Needy Families (TANF), A-1324.18
Unemployment Compensation, A-1324.19
Counting Child Support, A-1326.2.1
Client Inquiries, B-382

 

 

A—1231.3 Individual Development Accounts (IDAs)

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Staff must use the following policy to determine whether an IDA is a countable or exempt resource.

TANF IDAs — TANF IDAs must be used for one of the following purposes:

  • paying for a college education,
  • purchasing a home, or
  • starting a business.

The household is not required to be a TANF recipient to qualify for an IDA, but the household must be financially needy and have a child living with the custodial parent or other adult relative who meets the TANF relationship criteria or the household must consist of a pregnant woman.

The household is considered financially needy if the household is eligible to receive TANF, SNAP, or any Medical Program except TP 56. For TP 56, the household is considered financially needy if its gross income is below 185 percent of the Federal Poverty Income Limit (FPIL).

Any earnings, including Earned Income Tax Credit (EIC), deposited in a TANF IDA must be excluded from resources. Any interest earned on the account must be excluded from resources. Any deposits into an IDA not made with earnings, or withdrawals from an IDA that are not made for an allowable qualifying purpose, should count as a resource.

Assets for Independence Act (AFIA) IDAs — AFIA IDAs are funded and authorized under the AFIA and must meet one of the same qualifying purposes as TANF IDAs. Any earnings, including EIC, deposited in an AFIA IDA must be excluded from resources. Any interest earned on the account must also be excluded from resources. Any deposits into an IDA not made with earnings, or withdrawals from an IDA that are not made for an allowable qualifying purpose, should count as a resource.

Other IDAs — These IDAs do not meet one of the qualifying purposes of paying for a college education, purchasing a home, or starting a business and should be counted as a resource. The interest earned on these accounts must be counted as unearned income.

For any type of IDA, matched funds are not counted as a resource, as they are not accessible to the household.

Exception: IDAs are exempted if Long Term Care certifies them as meeting the Social Security criteria for a Plan to Achieve Self-Sufficiency (PASS).

 

 

A—1231.4 Retirement Accounts

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

A retirement account is one in which an employee and/or the employer contributes money for retirement. There are several types of retirement plans.

Some of the most common plans authorized under Section 401(a) of the Internal Revenue Services (IRS) Code are the 401(k) plan, Keogh, Roth individual retirement account (IRA), and a pension or traditional benefit plan. Common plans under Section 408 of the IRS Code are the IRA, Simple IRA, and Simplified Employer Plan.

  • A 401(k) plan allows an employee to postpone receiving a portion of current income until retirement.
  • An IRA is an account in which an individual contributes money to supplement the individual’s retirement income (regardless of the individual’s participation in a group retirement plan).
  • A Keogh plan is an IRA for a self-employed individual.
  • A Simplified Employee Pension (SEP) plan is an IRA owned by an employee to which an employer makes contributions or an IRA owned by a self-employed individual who makes contributions for the individual’s self.
  • A pension or traditional defined benefit plan is employer-based and promises a certain benefit upon retirement regardless of investment performance.

The following retirement accounts or plans are excluded:

  • Accounts established under Internal Revenue Code of 1986, Sections 401(a), 403(a), 403(b), 408, 408A, 457(b), 501(c)(18);
  • Plans established under the Federal Thrift Savings Plan, Section 8439, Title 5, United States Code; and
  • Other retirement accounts determined to be tax exempt under the Internal Revenue Code of 1986.

Any other retirement accounts not established under plans or codes listed above are counted.

Related Policy

Lump-Sum Payments, A-1242

 

 

A—1231.5 Education Tuition Savings Plan

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Internal Revenue Service Code, Section 529 and 530, Coverdell Education Tuition Savings Plans, which provide special tax benefits for school tuition savings accounts, are exempt.

Section 529 qualified tuition programs allow owners to prepay a student's education expenses or contribute to an account to pay those expenses. Examples of Section 529 accounts are:

  • Texas College Savings Plan;
  • LoneStar 529 Plan; and
  • Texas Guaranteed Tuition Plan (formerly the Texas Tomorrow Fund).

A Coverdell Education Savings Account is a trust or custodial account set up in the U.S. for the sole purpose of paying qualified education expenses for the designated beneficiary of the account. There is no limit to the number of accounts that can be established for a beneficiary. The designated beneficiary must be under age 18 at the time the account is established. The plan may be for elementary school through college.

 

 

A—1231.6 Achieving a Better Life Experience (ABLE) Accounts

Revision 17-1; Effective January 1, 2017

Achieving a Better Life Experience (ABLE) programs allow individuals who become blind or disabled before age 26 to establish tax-free savings accounts for the designated beneficiary's disability-related expenses.

TANF, SNAP, Children on TP 32 and Children on TP 56

Funds held in an ABLE account are excluded from countable resources when determining eligibility.

Related Policy:

Achieving a Better Life Experience (ABLE) Accounts; A-1326.25  

 

 

A—1231.7 School-Based Savings Accounts

Revision 17-4; Effective October 1, 2017

All Programs

School-Based Savings Accounts are accounts set up by students or their parents at financial institutions that partner with school districts. The accounts are intended to help students save for higher education.

TANF, Children on TP 32 and Children on TP 56

Funds in School-Based Savings Accounts are exempt up to an amount set by the Texas Higher Education Coordinating Board (THECB) each year. The current exempt amount is $11,896. Count any excess over the exempt amount as a resource.

Note: This amount is updated annually.

SNAP

The total amount of funds in a School-Based Savings Account is exempt.

Related Policy

School-Based Savings Accounts, A-1326.26

 

 

A—1232 Government Payments

Revision 07-4; Effective October 1, 2007

 

 

A—1232.1 Crime Victim's Compensation Payments

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Crime victim's compensation payments are exempt from resources.

 

 

A—1232.2 Federal Tax Refunds and Earned Income Tax Credits (EIC)

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Federal tax refunds and EIC payments are exempt from resources for a period of 12 months after receipt.

Related Policy
Federal Tax Refunds and Earned Income Tax Credits (EIC), A-1323.5.1

 

 

A—1232.3 Energy Assistance Payments

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Payments or allowances made under any federal law for the purpose of energy assistance are exempt.

Related Policy

Energy Assistance, A-1326.3

 

 

A—1232.4 Government Disaster Payments

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Federal disaster payments and comparable disaster assistance provided by states, local governments, and disaster assistance organizations if the household is subject to legal penalties when the funds are not used as intended (including temporary employment of six months or less for disaster-related work, paid under the Workforce Innovation and Opportunity Act and funded by the National Emergency Grant) are exempt.

Examples:

  • Payments by the Individual and Family Grant Program or Small Business Administration to rebuild a home or replace personal possessions damaged in a disaster.
  • Payments from the Federal Emergency Management Agency (FEMA) to assist with rent.

Related Policy
Government Disaster Payments, A-1324.3

 

 

A—1232.5 Transitional Living Allowance

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Transitional living allowances are exempt.

Related Policy
Transitional Living Allowance, A-1324.5

 

 

A—1232.6 Native and Indian Claims

Revision 20-3; Effective July 1, 2020

TANF, SNAP, Children on TP 32 and Children on TP 56

The following payments resulting from Public Laws are exempt:

  • Payments to Grand River Band of Ottawa Indians (Public Law [PL] 94-540).
  • Payments to Passamaquoddy Tribe, the Penobscot Nation, and the Houlton Band of Maliseet Indians received according to the Maine Indian Claims Settlement Act of 1980 (PL 96-420, Section 9(c)).
  • Payments to members of the Seneca Nation (PL 101-503).
  • Payments to Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation, received from the Indian Claims Commission (PL 95-433).
  • Payments made under the Sac and Fox Indian Claims Agreement (PL 94-189).
  • Payments received by certain Indian tribal members under PL 94-114, Section 6, for submarginal lands held in trust by the United States.
  • Payments from Indian lands held jointly with the tribe or land that can be sold only with approval of the Bureau of Indian Affairs.

SNAP and TANF

The following distributions and payments are exempt:

  • Distributions from native corporations made under the Alaska Native Claims Settlement Act (ANCSA) (PL 92-203 and Section 15 of PL 100-241), as follows:
    • cash up to $2,000 per person per calendar year;
    • stocks;
    • a partnership interest;
    • land or interest in land; or
    • an interest in a settlement trust.
  • Payments (and any initial purchases made with such funds) distributed by the Secretary of the Interior to families or individual tribal members (PL 93-134) including:
    • tribal trust funds distributed to individual members of an Indian tribe (PL 98-64);
    • judgment funds up to $2,000 per year, per person, granted to a tribe because of claims against the United States and held in trust or distributed per capita (PL 93-134 as amended by PL 97-458);
    • payments up to $2,000 per year to heirs of deceased Indians made under the Old Age Assistance Claims Settlement Act (PL 98-500); and
    • payments distributed per capita to or held in trust for members of any Indian tribe under PL 92-254.

SNAP

The following four types of property belonging to a member of a federally recognized Indian tribe are exempt:

  • Property, which may be real property and improvements, that is held in trust located on a reservation, including any federally recognized Indian tribe reservation, pueblo or colony. Property may be located on former reservations in Oklahoma, in Alaska native regions established by the Alaska Native Claims Settlement Act, and on Indian allotments on or near a reservation as designated and approved by the Bureau of Indian Affairs.
  • For any federally recognized tribe not listed in the previous item, property located on a past federally recognized reservation.
  • Ownership interests in rents, leases, royalties, or usage rights related to natural resources that are federally protected by the Bureau of Indian Affairs.
  • Ownership or usage rights to property not in the previous items that have unique religious, spiritual, traditional or cultural significance, or ownership or usage rights that allow the continuation of the Indian lifestyle according to tribal law or custom.

 

 

A—1232.7 Payments to Children of Vietnam Veterans

Revision 03-7; Effective October 1, 2003

 

 

 

 

A—1232.7.1 Payments to Children of Vietnam Veterans Who Are Born with Spina Bifida

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Exempt Veterans Affairs (VA) payments made under PL 104-204.

 

 

A—1232.7.2 Payments to Children of Women Vietnam Veterans Born with Certain Birth Defects (Public Law 106-419)

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Exempt VA payments made under PL 106-419.

 

 

A—1232.8 Payments to Civilians Relocated During Wartime

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Payments to civilians relocated during wartime made under Title I of PL 100-383 are exempt. These payments are made to Aleuts or individuals of Japanese ancestry (or their heirs) who were relocated during World War II.

 

 

A—1232.9 Payments to Victims of Nazi Persecution

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Payments made to individuals because of their status as victims of Nazi persecution are exempt.

 

 

A—1232.10 Radiation Exposure Compensation Act Payments

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Payments provided from the Radiation Exposure Compensation Act, PL 101-426, are exempt.

 

 

A—1232.11 Payments to World War II Filipino Veterans and Spouses

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Under the American Recovery and Reinvestment Act of 2009 (Division A, Title X, Section 1002), some World War II Filipino veterans who served in the military forces of the Government of Commonwealth of the Philippines, and their spouses, are authorized to receive one-time lump sum payments of up to $15,000.

These payments are exempt.

 

 

A—1232.12 Relocation Assistance

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Payments provided by the following are exempt:

  • The Uniform Relocation Assistance and Real Properties Acquisition Act of 1970.
  • PL 93-531 to members of the Navajo or Hopi tribes.

 

 

A—1232.13 Relative and Other Designated Caregiver Program Payments

Revision 19-1; Effective January 1, 2019

TANF, SNAP, Children on TP 32 and Children on TP 56

There are two types of Relative and Other Designated Caregiver Program Payments issued by DFPS. These include:

  • Kinship Reimbursement payments; and
  • Post-Permanent Managing Conservatorship Annual Reimbursement payments.

The remaining balance of both of these types of payments is considered a resource in the month(s) after receipt.

Related Policy
Relative and Other Designated Caregiver Program Payments, A-1324.21

 

 

A—1233 Insurance

Revision 03-5; Effective July 1, 2003

 

 

A—1233.1 Life Insurance

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

The cash value of life insurance policies is exempt.

 

 

A—1233.2 Prepaid Burial Insurance

Revision 21-2; Effective April 1, 2021

TANF and SNAP

Exempt the full cash value of a prepaid burial insurance policy, funeral plan or funeral agreement for each household member.

Children on TP 32 and Children on TP 56

Exempt up to $7,500 cash value of a prepaid burial insurance policy, funeral plan, or funeral agreement for each certified household member. Count the cash value exceeding $7,500 as a liquid resource.

The person’s statement of cash value should be accepted unless the amount is questionable or close to the maximum allowable limits.

Related Policy

General Policy, A-1210
Limits, A-1220
Vehicles, A-1238
How to Determine Fair Market Value of Vehicles, A-1238.5
General Policy, A-1310
Categorically Eligible Households, B-470

 

 

A—1234 Noneducational Loans

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Financial assistance is considered as a loan if:

there is an understanding the money will be repaid, and

the individual can reasonably explain how the loan will be repaid.

These loans are exempt from resources, but assistance that is not considered a loan, such as a contribution, is counted as unearned income.

Related Policy

Cash Gifts and Contributions, A-1326.1
Loans (Noneducational), A-1326.7

 

 

A—1235 Personal Possessions

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Exempt personal possessions.

 

 

A—1236 Property

Revision 03-1; Effective January 1, 2003

 

 

 

A—1236.1 Burial Plots

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Exempt all burial plots.

Related Policy
Prepaid Burial Insurance, A-1233.2

 

 

A—1236.2 Homestead

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

The usual residence and surrounding property not separated by property owned by others is exempt. The exemption remains in effect if public rights of way, such as roads, separate the surrounding property from the home. The homestead exemption applies to any structure the individual uses as a primary residence, including additional buildings on contiguous land, a houseboat, or a motor home, as long as the household lives in it. If the household does not live in the structure, the structure is counted it as a resource. Houseboats and motor homes count according to vehicle policy, if not considered the household's primary residence or otherwise exempt. The equity value of extra buildings counts unless the buildings are exempt for another reason.

For households that currently do not own a home, but own or are purchasing a lot on which they intend to build, the lot and partially completed home are exempt.

TANF

Households cannot claim real property outside Texas as a homestead. Exception: Migrants and itinerant workers who meet the residence requirements in A-710, General Policy, may claim an exemption for a homestead outside Texas.

SNAP

All homesteads and property are exempt.

 

 

A—1236.2.1 Homestead Temporarily Unoccupied

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

A homestead temporarily unoccupied because of employment, training for future employment, illness (including receiving medical treatment), casualty (fire, flood, state of disrepair, etc.), or natural disaster, if the household intends to return, is exempt.

 

 

A—1236.2.2 Sale of a Homestead

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Money remaining from the sale of a homestead is counted as a resource.

 

 

A—1236.3 Income-Producing Property

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Income-producing property is any real or personal property that generates income. Property is exempt if the property:

  • is essential to a household member's employment or self-employment, such as tools of a trade, farm machinery, stock, and inventory (this property continues to be exempt during temporary periods of unemployment if the individual expects to return to work);
  • annually produces income consistent with a fair market value comparable in the community, even if used only on a seasonal basis such as rental property (to determine that the income produced is comparable to the fair market value for similar usage of real property in the area, eligibility staff may contact local realtors, tax assessors, the Small Business Administration or similar sources); or
  • is necessary for the maintenance or use of a vehicle exempted as income-producing or as necessary for transporting a household member with a physical disability. The portion of the property used for this purpose is exempt.

Note: For farmers or fishermen, the value of land or equipment continues to be exempt for one year from the date that the self-employment ceases.

 

 

A—1236.4 Real Property

Revision 19-4; Effective October 1, 2019

TANF, Children on TP 32 and Children on TP 56

Equity value of real property counts unless it is otherwise exempt.

Any portion of real property directly related to the maintenance or use of a vehicle is exempt if the vehicle is:

  • necessary for self-employment; or
  • to transport a household member with a physical disability.

The equity value of any remaining portion counts unless it is otherwise exempt.

SNAP

Real property is exempt.

 

 

A—1236.4.1 Exemption Based on Good Faith Effort to Sell

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Real property is exempt if the household is making a good faith effort to sell it.

 

 

A—1236.5 Jointly Owned Property

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Property jointly owned by the household applying and other individuals not applying for or receiving benefits is exempt if the:

  • household provides proof they cannot sell or divide the property without consent of the other owners; and
  • other owners will not sell or divide the property.

SNAP

Jointly owned property is exempt.

Related Policy

Solely Owned Vehicles, A-1238.1

 

 

A—1237 Trust Funds

Revision 20-1; Effective January 1, 2020

TANF, SNAP, Children on TP 32 and Children on TP 56

Trust funds are exempt if all of the following conditions are met:

  • The trust arrangement is unlikely to end during the certification period.
  • No household member can revoke the trust agreement or change the name of the beneficiary during the certification period.
  • The trustee of the fund is either a:
    • court, institution, corporation, or organization not under the direction or ownership of a household member; or
    • court-appointed person who has court-imposed limitations placed on the use of the funds; and
  • The trust investments do not directly involve or help any business or corporation under the control, direction, or influence of a household member.
  • Trusts established from the household's own funds are exempt if the trustee uses the funds:
    • only to make investments on behalf of the trust; or
    • to pay the education or medical expenses of the beneficiary.

 

 

A—1238 Vehicles

Revision 20-1; Effective January 1, 2020

TANF, SNAP, Children on TP 32 and Children on TP 56

The total value of all licensed vehicles used for income-producing purposes is exempt. A vehicle is considered income-producing if it:

  • is used as a taxi, a farm truck or fishing boat;
  • is used to make deliveries as part of the person's employment;
  • is used to make calls on people or customers;
  • is required by the terms of employment; or
  • produces income consistent with its fair market value.

A vehicle necessary to transport a household member with a physical disability on the EDG or a person with a physical disability living in the home is exempt even if the person is disqualified and regardless of the purpose of the trip. No more than one vehicle for each household member with a physical disability may be exempt. There is no requirement that the vehicle be used primarily for the person with a physical disability. The SNAP work-registration criteria should be used to determine physical disability for this exclusion.

Note: These exemptions remain in effect when the vehicle is temporarily not in use.

SNAP

The following vehicles are exempt even when the vehicle is temporarily not in use:

  • vehicles necessary for long-distance travel for employment such as the vehicle of a traveling salesperson or of a migrant farm worker who is following the migrant stream (this does not include daily commuting);
  • vehicles used as the household's home;
  • vehicles necessary to carry fuel for heating or water when it is anticipated to be the primary source of fuel or water for the household during the certification period. Examples of situations in which a vehicle may be exempt because it is necessary to carry the household's primary source of water or fuel for heating include the following:
    • the home does not have any connected utilities; or
    • the home is connected to utilities, but the utilities cannot be used for some reason, such as:
      • a verifiable health risk exists if the household drinks the water; or
      • the utilities are disconnected because the household failed to pay its bills.

The vehicle exemption remains in effect until the above criteria no longer exist. The vehicle exemption also remains in effect for:

  • any licensed vehicle with equity value less than or equal to $1,500;
  • one vehicle with an FMV less than $4,650 for each adult household member, regardless of how the vehicle is used*; and
  • any other licensed vehicle with an FMV less than $4,650 that a minor (under age 18) drives to work, training, school, or to seek employment*.

For all other licensed and unlicensed vehicles, the FMV in excess of $4,650 is counted as a resource.

*This also applies to any person who is an ineligible alien or disqualified member of the SNAP household. The FMV of each vehicle in excess of $4,650 is counted as a resource.

Up to $15,000 of the FMV for the highest valued countable vehicle is exempt. The FMV in excess of $15,000 is counted as a resource.

TANF, Children on TP 32 and Children on TP 56

Vehicles with an FMV of less than $4,650 are excluded, regardless of the number of vehicles owned by a TANF-certified or disqualified household member. The FMV in excess of $4,650 counts toward the household's resource limit.

 

 

A—1238.1 Solely Owned Vehicles

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

A vehicle with a title registered solely in one person's name is considered an accessible resource for that person. This includes:

  • vehicles involved in community property issues when one person's name is on the title; and
  • a vehicle registered solely in the individual's name that the individual claims to have purchased for someone else.

Exceptions: The vehicle is inaccessible if the title holder verifies that:

  • the vehicle was sold but the name on the title has not been transferred to the buyer (in this situation, the vehicle belongs to the buyer);

Note: Any payments made by the buyer to the individual or the individual's creditors (directly) count as self-employment income (see A-1323.4, Self-Employment).

  • the vehicle was sold but the buyer has not transferred the title into the buyer's name;
  • the vehicle was repossessed;
  • the vehicle was stolen; or
  • the title holder filed for bankruptcy (Title 7, 11 or 13), and the individual is not claiming the vehicle as exempt from the bankruptcy estate. Note: In most bankruptcy petitions, the court will allow each adult individual to keep one vehicle as exempt for the bankruptcy estate. This vehicle is a countable resource.

A vehicle is accessible to an individual even though the title is not in the individual's name if the individual:

  • purchased or is purchasing the vehicle from the person who is the title holder; or
  • is legally entitled to the vehicle through an inheritance or divorce settlement.

 

 

A—1238.2 Jointly Owned Vehicles

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Vehicles jointly owned with another person not applying for or receiving benefits are considered inaccessible if the other owner is not willing to sell the vehicle.

Exception: See A-1247, Resources of Stepparents.

 

 

A—1238.3 Vehicles Over 20 Years Old

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

The value of a vehicle over 20 years old is exempt if the value is not available. If the applicant provides the value for a vehicle older than 20 years, the amount provided should be accepted. Note: A vehicle’s age during any month of that year should be considered.

 

 

A—1238.4 Leased Vehicles

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

A person leasing a vehicle is not generally considered the owner of the vehicle because the:

  • vehicle does not have any equity value,
  • person cannot sell the vehicle, and
  • title remains in the leasing company's name.

A leased vehicle is exempt until the individual exercises the option to purchase the vehicle. Once the individual becomes the owner of the vehicle, the vehicle counts as a resource.

The individual is the owner of the vehicle if the title is in the individual's name, even if the individual and the dealer refer to the vehicle as leased, and the vehicle counts as a resource.

 

 

A—1238.5 How to Determine Fair Market Value of Vehicles

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

The FMV of licensed vehicles is determined using the average wholesale value listed in the Vehicles Registered at Address report from the Data Broker System. After the vehicle value is verified, it does not have to be re-verified unless resources are close to the resource limit and a change in the vehicle value results in a change in eligibility status. Note: If the household claims the listed value does not apply because the vehicle is in less-than-average condition, the household must provide proof of the true value from a reliable source, such as a bank loan officer or a local licensed car dealer.

The basic value of a vehicle is not increased because of low mileage, optional equipment, or special equipment for a person with a disability.

The household's estimate of the value of vehicles no longer listed in the Data Broker System should be accepted, unless it is questionable and would affect the household's eligibility. In this case, the household must provide an appraisal from a licensed car dealer or other evidence of the car's value, such as a tax assessment or a newspaper advertisement indicating the sale value of similar vehicles.

The value of new vehicles not yet listed in the Data Broker System may be determined by asking the household to provide an estimate of the average wholesale value from a new car dealer or bank loan officer. If this cannot be done, the individual's estimate should be accepted unless it is questionable and would affect eligibility. The car's loan value should be used only if other sources are unavailable. Advisors must request proof of the value of licensed antiques and custom made or classic vehicles from the household if an accurate appraisal cannot be made.

Determining Vehicle Resource Values
Type of Vehicles SNAP TANF, Children on TP 32 and Children on TP 56
Income-producing Exempt Exempt
Vehicle for a person with a physical disability living in the home Exempt Exempt
Equity value less than or equal to $1,500 Exempt Not applicable
Long distance travel for employment Exempt Exempt up to $4,650 of FMV. Count excess.
Household's home Exempt Exempt up to $4,650 of FMV. Count excess.
Carry fuel or water Exempt Exempt up to $4,650 of FMV. Count excess.
Primary vehicle/Highest valued countable vehicle Exempt up to $15,000 of FMV. Count excess. Exempt up to $4,650 of FMV. Count excess.
One vehicle for each adult household member, regardless of use Exempt up to $4,650 of FMV. Count excess. Exempt up to $4,650 of FMV. Count excess.
Any vehicle used by a household member under age 18 for employment, training, education or to seek employment Exempt up to $4,650 of FMV. Count excess. Exempt up to $4,650 of FMV. Count excess.
Other licensed vehicles Exempt up to $4,650 of FMV. Count excess Exempt up to $4,650 of FMV. Count excess.
Unlicensed vehicles Exempt up to $4,650 of FMV. Count excess. Exempt up to $4,650 of FMV. Count excess.

 

See A-1238, Vehicles, for the specific policy for determining the countable value of a vehicle.

 

 

A—1239 Educational Assistance

Revision 15-4; Effective October 1, 2015

TANF, SNAP, Children on TP 32 and Children on TP 56

Educational assistance (including education loans, regardless of the source) is exempt during the period it is intended to cover. If the individual combines the educational assistance with other countable funds, such as a bank account, the educational assistance is exempt during the period that it is intended to cover. For example, educational assistance intended for the months of January through May is an exempt resource during the same months.

Related Policy

Educational Assistance, A-1322.1