Liquid Resources

Liquid resources include cash or other property that can be converted to cash within 20 working days, such as:

Stocks,
Bonds,
Mutual funds,
Promissory notes,
Mortgages,
Life insurance policies, and
Bank accounts, including time deposits.

Liquid resources, other than cash, are evaluated according to the individual's equity in the resources.

Non-Liquid Resources

Non-liquid resources include property which cannot be converted to cash within 20 working days, such as:

Loan agreements,
Household goods,
Vehicles,
Boats,
Buildings, and
Land.

Nonliquid resources are evaluated according to their equity value except as otherwise provided.

Equity Value

The equity value of a resource is the CMV of a resource minus any encumbrance owed.

Current Market Value (CMV)

The CMV of a resource is the going price for which it can reasonably be expected to sell on the open market in the particular geographic area involved.

Note: The CMV of a vehicle may be determined by accessing the on-line Kelley Blue Book website. http://www.kbb.com.

[Refer to the CalWORKs Handbook, “Kelley Blue Book (KBB) Value,” page 15-18 for detailed instructions on the use of on-line Kelley Blue Book website.]

Encumbrance

An encumbrance is a legally binding debt against a specific property. Such a debt reduces the value of the encumbered property but does not have to prevent the property owner from transferring ownership (selling) to a third party. However, if the owner of encumbered property does sell it, the creditor will nearly always require debt satisfaction (payment) from the proceeds of sale.

Shared Ownership

Each owner of shared property owns only his or her fractional interest in the property. The total value of the property must be divided among all of the owners in direct proportion to the ownership share held by each.

Exception: For a joint checking or savings account or a jointly-owned time deposit, ALL of the funds belong to the account holder(s). Therefore, the total value of the account must be equally divided among the owners of the account.

Deeming Resources

Resources, like income, are also deemed from an ineligible spouse or parent, or a sponsor. If the resources are deemed from an individual, any countable resources in excess of $2,000 are deemed to the applicant/recipient. If the resources are deemed from a member of a married couple, any countable resources in excess of $3,000 are deemed to the applicant/recipient.
Resources are also deemed to a minor child from the parent(s) living in the same household, and from the sponsor to a sponsored immigrant.

Exception: Pension funds owned by an ineligible parent(s) are excluded from countable resources. Pension funds are defined as funds held in an IRA or in a work-related pension plan, such as a Keogh plan.

In both of the situations above, only the countable resources exceeding the applicable resource shown above are deemed to the child or immigrant.