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TANF Resources - Oklahoma

The following rules apply to the counting of resources for the Temporary Assistance for Needy Families (TANF) program. If resources are counted, they are said to apply against the "reserve." The "reserve" is a reference to the Maximum Reserve amount of $1,000 listed in DHS Appendix C-1, Schedule of Maximum Income, Resource and Payment Standards, Schedule IX.C. (Requires Adobe Acrobat Reader.)

Trust Funds

Monies held in trust for an individual applying for or receiving Temporary Assistance for Needy Families (TANF) must have the availability of the funds determined. Funds held in trust are considered available both when actually available and when the applicant or recipient has a legal interest in a liquidated sum and has the legal ability to make such sum available for support and maintenance.

Trusts of a child included in a TANF benefit are excluded if it is determined by the social services specialist that the funds are to be used for educational purposes for the child. Any court established trust must be examined to determine if the court has restricted the trust for other purposes. Any funds withdrawn are treated as lump sum unearned income unless it can be documented the funds were used for the child's educational purposes;

See DHS Policy, Title 340, Chapter 10-3-6 for the full regulations regarding trusts. If you are connected to the Internet, you can find the regulations at: OK Department of Human Services Policy

Personal Property

Household goods and equipment.

Items essential to day-to-day living such as clothing, furniture, and other similarly essential items of limited value are excluded as resources.

Livestock and equipment used in a business enterprise.

The individual's equity in livestock, equipment, or inventory of merchandise in a business enterprise is considered in relation to the reserve only if the individual is not actively engaged in the business enterprise. Equity is not counted if the individual actively participates in the business or is only temporarily inactive, for example, incapacitated and can reasonably expect and has plans to resume the business enterprise.

Livestock and home produce used for home consumption.

Any livestock or produce grown and used by the assistance unit for home consumption is exempt.

Cash savings and bank accounts.

Money on hand or in a savings account is considered as an available resource.

· Checking accounts may or may not represent savings. Current bank statements are evaluated with the individual to establish what, if any, portion of the account represents savings. Any income that has been deposited during the current month is not considered.

· Accounts that are owned jointly are considered available to the individual unless it can be established what part of the account actually belongs to each of the owners, the money is actually separated, and the joint account dissolved.

Insurance policies and prepaid funeral benefits.

· Life insurance policies. The cash surrender value (CSV) less any loans or unpaid interest of life insurance policies owned by members included in the TANF cash assistance is counted as part of the reserve. Dividends that accrue and remain with the insurance company increase the amount of reserve. Dividends paid to an individual are considered as income. However, assignment of the face value of a life insurance policy to fund a prepaid burial contract is not counted as part of the reserve. In this instance, the amount of the face value of the life insurance is evaluated according to the policy on burial funds or, if applicable, the policy on the irrevocable burial contract.

· Burial spaces. The value of a burial space for each family member whose needs are in the cash assistance or whose income and resources are considered when computing the cash assistance is excluded from resources.

· Burial funds. Revocable burial funds not in excess of $1500 for each member included in the assistance unit are excluded as a resource if the funds are specifically set aside for the burial arrangements of the individual. Any amount in excess of $1500 for each member included in the assistance unit is considered as a resource. Burial policies which require premium payments and do not accumulate cash value are not considered to be prepaid policies.

o Burial funds means a prepaid funeral contract or burial trust with a funeral home or burial association which is for the individual's burial expenses.

o The face value of a life insurance policy, when properly assigned by the owner to a funeral home or burial association, may be used for purchasing burial funds as described above.

o The burial fund exclusion must be reduced by the face value of life insurance policies owned by the individual and by the amounts in an irrevocable trust or other irrevocable arrangement.

o Interest earned or appreciation on the value of any excluded burial funds is excluded if left to accumulate and become a part of the burial fund.

o If the individual did not purchase the prepaid burial, even if the individual's money was used for the purchase, the individual is not the owner and the prepaid burial funds cannot be considered a resource to the individual.

· Irrevocable burial contract. Oklahoma law provides that a purchaser of a prepaid funeral contract may elect to make the contract irrevocable. Irrevocability never becomes effective until 30 days after the contract is signed.

o If the irrevocable election was made prior to July 1, 1986, and the individual received assistance on July 1, 1986, the full amount of the irrevocable contract is excluded as a countable resource. This exclusion applies only if the individual does not add to the amount of the contract. Interest accrued on the contract is not considered as added. Any break in assistance requires that the contract be evaluated at the time of reapplication.

o If the effective date for the irrevocable election or application for assistance is July 1, 1986, or later, the amount in any combination of an irrevocable contract, revocable prepaid burial contract or trust, and the cash value of unassigned life insurance policies cannot exceed $7500. When the principal amount exceeds $7500, the individual is ineligible for assistance. Accrued interest is not counted as a part of the $7500 limit, regardless of when it is accrued.

o For an irrevocable contract to be valid, the election to make it irrevocable must be made by the purchaser or the purchaser's guardian or an individual with power of attorney for the purchaser.

· Medical insurance. When an individual has medical insurance whether directly purchased or available in conjunction with employment, the available benefits are applied toward the medical expense for which the benefits are paid. If an assignment of the insurance is not made to the vendor and payment is made directly to the individual, the payment must be applied to the cost of medical services. Any amount remaining after payment for medical services is considered in relation to the reserve.

Stocks, bonds, mortgages, and notes.

The individual's equity in stocks and bonds, including U.S. Savings Bonds, Series A through EE, is considered in relation to the reserve. The current market value less encumbrances is the equity. Except for a bond that has been held beyond the maturity date, the current value is the redemption value listed in the table on the back of the bond for the anniversary date most recently reached. If the bond has been held beyond maturity date, it has continued to draw interest. The amount that can be realized from notes, mortgages, and similar instruments, if offered for immediate sale, constitutes a reserve.

Non-negotiable resources.

Installment payments received on a note, mortgage, and similar instruments, for which a buyer cannot be found are considered as monthly income.

Automobiles, pickups, and trucks.

The market value of each year's make and model is established on the basis of the average trade in value.

· Exempt automobiles. One automobile, pickup, truck, or other vehicle used for the primary source of transportation for each assistance unit not to exceed an equity value of $5,000 is exempted. The amount of the equity in excess of $5,000 is considered against the resource limit.

· Other vehicles. The equity in other automobiles, pickups, and trucks as well as other personal property including boats, travel trailers, motorcycles, motor homes, campers, and similar items is considered in relation to the reserve. The current market value less encumbrances on the vehicle is the equity. Only encumbrances that can be verified are considered in computing equity.

Lump sum payments.

A lump sum settlement that compensates for the loss of a resource such as an automobile may be disregarded in the amount used to replace the loss. The individual is given a reasonable amount of time to replace the loss not to exceed a 30-day period. Extension beyond the 30 days may be justified in special instances when completion of the transaction is beyond the individual's control. Any amount remaining after the replacement of the loss is considered as income. Income tax refunds, except for the portion that represents an earned income tax credit (EITC), must be treated as a resource and considered available to the recipient upon receipt. Retirement benefits received as a lump sum payment at termination of employment are considered a resource.

These benefits are not treated as income because the retirement contribution was regarded as income in the month earned and withheld by the employer.

Resource disregards.

Resources disregarded in determining need are:

· Food Stamp allotments under the Food Stamp Act of 1977.

· any payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

· education grants, including work study, scholarships, and similar grants, if receipt is contingent upon the student regularly attending school. The student's classification, graduate or undergraduate, is not a factor.

· loans, regardless of use, if a bona fide debt or obligation to pay can be established. Criteria to establish a loan as bona fide includes an acknowledgment of obligation to repay or evidence that the loan was from an individual or financial institution in the loan business. The borrower's acknowledgment of obligation to repay, with or without interest, is considered to indicate that the loan is bona fide. If the loan agreement is not written, Form ADM-103, Loan Verification, is completed by the borrower attesting that the loan is bona fide and signed by the lender verifying the date and amount of loan.

· Indian payments, including judgment funds or funds held in trust, distributed per capita by the Secretary of the Interior, Bureau of Indian Affairs (BIA) or distributed per capita by the tribe subject to approval by the Secretary of the Interior. Also, disregard any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds. Any income from mineral leases or tribal business investments is disregarded as long as the payments are paid per capita. For purposes of this paragraph, per capita is defined as each tribal member receiving an equal amount. Any interest or income derived from the principal or produced by purchases made with the funds after distribution is considered as any other income.

· special allowances for school expenses made available upon petition, in writing, from funds held in trust for the student.

· trusts of a child included in a TANF benefit if it is determined by the social services specialist the funds are to be used for educational purposes for the child. Any court established trust must be examined to determine if the court has restricted the trust for other purposes. Any funds withdrawn are treated as lump sum unearned income unless it can be documented the funds were used for the child's educational purposes.

· any accounts, stocks, bonds, or other resources held under the control of a third party if the funds are designated for educational purposes for a TANF child, even if the child's name is on the account and the third party holder is required to access the funds.

· benefits from State and Community Programs on Aging [Title III and Title V] are disregarded. Both Title III and Title V are under the Older Americans Act of 1965 amended by Public Law (P.L.) 100-175 to become the Older Americans Act amendments of 1987;

· unearned income received by a TANF child, such as needs based payments, cash assistance, compensation in lieu of wages, and allowances from programs funded by the Workforce Investment Act (WIA), including Job Corps income. Also, WIA earned income received as wages, not to exceed six months in any calendar year unless the child is a full-time student;

· payments for supportive services or reimbursement of out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE), Active Corps of Executives (ACE), and any other programs pursuant to the National and Community Service Trust Act of 1993 (NCSTA);

· payments to volunteers under the NCSTA, unless the gross amount of AmeriCorps*VISTA payments equals or exceeds the state or federal minimum wage, whichever is greater;

· the value of supplemental food assistance received under the Child Nutrition Act or the special food service program for children under the National School Lunch Act;

· any portion of payments made under the Alaska Native Claims Settlement Act to an Alaska Native which are exempt from taxation under the Settlement Act;

· Experimental Housing Allowance Program (EHAP) payments made under Annual Contributions Contracts entered into prior to January 1, 1975, under Section 23 of the U.S. Housing Act of 1937, as amended;

· advance payments of EITC or refunds of EITC, as a result of filing a federal income tax return, in the month received and the following month;

· payments from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.);

· payments made from the Radiation Exposure Compensation Trust Fund as compensation for injuries or deaths resulting from the exposure to radiation from nuclear testing and uranium mining;

· federal major disaster and emergency assistance provided under the Disaster Relief Act of 1974, and comparable disaster assistance provided by state, local governments, and disaster assistance organizations;

· interests of individual Indians in trust or restricted lands. However, any disbursements from the trust or restricted lands are considered as income;

· a migratory farm worker's out-of-state homestead if the farm worker's intent is to return to the homestead after the temporary absence;

· a non-recurring lump sum Supplemental Security Income (SSI) retroactive payment, made to a TANF recipient, in the month paid and the next following month. The amount remaining in the second month after the month of receipt is a countable resource; and

· the balance in an individual's Individual Development Account (IDA) up to $2,000.