Medicaid for the Elderly and People with Disabilities Handbook

Chapter F — Resources

Reminder: Federal law requires that anyone who wishes to apply for Medicaid be allowed to file an application, regardless of the person's ultimate eligibility for services.

Table of Contents

F-1000
General Principles of Resources
F-1100
Texas Administrative Code Rules
F-1200
General Principles of Treatment of Resources
F-1210
Definition
F-1220
Ownership and Accessibility
F-1221
Co-owned Resources
F-1221.1
Co-owned Resource Examples:
F-1230
Guardians, Fiduciaries and Other Agents
F-1231
Guardians and Other Agents
F-1231.1
Examples of Treatment of Resources
F-1232
Fiduciary Agent
F-1232.1
Medicaid Recipient Responsibilities as Fiduciary Agent
F-1240
Ownership of Unknown Assets
F-1250
Patrimonial Assets
F-1260
Conversion of Resources
F-1270
Replacement Value of Excluded Resources
F-1300
Resource Limits
F-1310
Points in Time for Establishing Resource Values
F-1311
Encumbered Funds
F-1312
Nursing Facility Refunds
F-1312.1
During a Penalty
F-1312.2
Before Medicaid Eligibility Approval
F-1400
Deeming of Resources
F-1410
Deeming for Spouses
F-1420
Deeming for Children
F-2000
Resource Exclusions – Limited and Related to Exempt Income
F-2100
Resource Exclusions – Limited
F-2110
Cash Reimbursement of Medical or Social Services Expenses
F-2120
Death Benefits
F-2130
Earned Income Tax Credits (EITC)
F-2140
Hazardous Duty Pay
F-2150
SSI and RSDI Retroactive Lump Sum Payments
F-2151
Examples of SSI and RSDI Retroactive Lump Sum Payments
F-2160
Gifts to Children with Life-Threatening Conditions
F-2170
Exclusion of State or Local Relocation Assistance Payments
F-2200
Resource Exclusions Related to Exempt Income
F-2210
Crime Victims' Compensation
F-2220
Certain Designated Accounts
F-2230
Certain Health-Related Payments
F-2240
Indian-Related Exclusions
F-2250
Reparations and Compensation
F-2260
Exclusions from Resources Provided by other Statutes
F-2270
Exclusions from Resources Related to Disaster Payments
F-3000
Home
F-3100
The Home and Resource Exclusions
F-3110
Principal Place of Residence
F-3111
The Home as the Principal Place of Residence
F-3112
Spouse or Dependent Relative Living in the Home
F-3120
Intent to Return Home
F-3121
Intent to Return Policy
F-3121.1
Temporary Absence from the Home
F-3130
Home and Other Real Property Placed for Sale
F-3200
The Home and Resources in a Trust
F-3210
Treatment of a Home in a Revocable or Living Trust
F-3211
Re-established Intent to Return Home
F-3300
The Home as a Countable Resource
F-3400
Replacement of the Home
F-3500
Out-of-State Home Property
F-3600
Substantial Home Equity
F-3610
Persons Impacted by Substantial Home Equity Disqualification
F-3620
Persons Not Impacted by Substantial Home Equity Disqualification
F-3630
When the Equity Value is Greater Than the Limit
F-3640
Reverse Mortgage or Home Equity Loan
F-3650
Documentation
F-3660
Undue Hardship
F-3700
Continuing Care Retirement Communities
F-3800
The Home and Transfer of Assets
F-3810
Transfer of an Excluded Home Cancels the Exclusion
F-3811
Person Retains Some Interest
F-4000
Liquid and Nonliquid Resources
F-4100
Types of Liquid Resources
F-4110
Cash
F-4120
Bank Accounts
F-4121
Joint Bank Accounts
F-4122
Time Deposits
F-4123
Patient Trust Funds
F-4130
Stocks
F-4140
Bonds
F-4150
Promissory Notes, Loans and Property Agreements
F-4160
Prepaid Burial Contracts
F-4161
Treatment of Refund Penalty
F-4161.1
No Refund Penalty
F-4161.2
Refund Penalty
F-4161.3
Examples of Refund Penalty
F-4170
Burial Contracts Funded by Life Insurance
F-4171
Revocable Assignment
F-4172
Irrevocable Assignment
F-4200
Nonliquid Resources
F-4210
Real Property
F-4211
Real Property in Excess of the Limit
F-4212
Life Estates and Remainder Interests
F-4212.1
Calculation of Value of Life Estate or Remainder Interest
F-4213
Mineral Rights
F-4214
Burial Spaces
F-4215
Nonliquid Resources Located Outside the State
F-4220
Personal Property
F-4221
Automobile
F-4222
Household Goods and Personal Effects
F-4222.1
Other Personal Property
F-4223
Life Insurance
F-4223.1
Policy and Procedure
F-4223.2
Documentation and Verification
F-4224
Life Insurance Dividends
F-4224.1
Dividend Additions and Accumulations
F-4225
Accelerated Life Insurance Payments
F-4226
Term and Burial Insurance
F-4226.1
Policy and Procedure
F-4227
Burial Funds
F-4227.1
Calculation of Available Burial Fund Exclusion
F-4227.2
Opportunity to Designate
F-4227.3
Effective Date of Designation
F-4228
Burial Fund Calculation
F-4229
Annual Burial Fund Calculation
F-4229.1
Designated Amount is Less Than $1,500
F-4229.2
Designated Amount Exceeds $1,500
F-4229.3
Increased Value from Person Action
F-4229.4
Increased Value from Person Action and Interest/ Dividends
F-4230
Treatment of Burial Fund Tampering
F-4240
Safe Deposit Box
F-4250
Livestock
F-4260
Nonliquid Resources Converted to Cash
F-4300
Resources Essential to Self-Support
F-4310
Nonbusiness Property – $6000/6%
F-4311
Examples of $6000/6%
F-4312
Rate of Return Less Than Reasonable
F-4320
Employment Related Personal Property
F-4330
Business Property
F-4400
Plan for Achieving Self-Support (PASS)
F-5000
Potential Resource Exclusions
F-5100
Reminders
F-5200
Chart
F-6000
Types of Trusts
F-6100
Testamentary and Inter Vivos Trusts
F-6200
Medicaid-Qualifying Trust
F-6210
Zebley Cases
F-6300
Trusts (August 11, 1993 and After)
F-6310
Limited Partnerships
F-6400
Revocable Trusts
F-6500
Irrevocable Trusts
F-6600
Treatment of Trusts
F-6610
Payments from a Trust
F-6620
Uniform Transfers to Minors
F-6700
Exception Trusts
F-6710
Special Needs Trust
F-6711
Treatment as Resource
F-6712
Treatment as Income
F-6713
Transfer of Assets
F-6720
Pooled Trust
F-6721
Treatment as Resource
F-6722
Treatment as Income
F-6723
Transfer of Assets
F-6800
Qualified Income Trust (QIT)
F-6810
Treatment as Resource
F-6820
Treatment as Income
F-6900
Undue Hardship
F-7000
Annuities
F-7100
Determining Annuity Policy
F-7110
Persons Impacted by Post-DRA Annuity Policy
F-7120
Application File Date or Program Transfer Request Date
F-7130
Annuity Transaction
F-7140
Annuity Purchase or Transaction Date
F-7200
Post-DRA Annuity Policy
F-7210
Employment and Retirement-Related Annuities
F-7220
Post-DRA Treatment of an Annuity
F-7230
Post-DRA Terms and Conditions
F-7240
Treatment of an Annuity When Terms and Conditions Are Not Met
F-7250
Notice Requirements for Application and Redeterminations
F-7300
Pre-DRA Annuity Policy
F-7310
General Treatment of Annuities and the Five Criteria Test
F-7320
Determining a Reasonable Amount of Interest
F-7321
Treatment of Annuities that Return the Principal Within the Life Expectancy but Pay No Interest
F-7322
Treatment of Annuities that Return the Principal Within the Life Expectancy and Pay Interest