Definitions

Personal Property

Personal property is defined as possessions or interests, exclusive of real property, which may be easily transported or stored.

Real Property 

Real property is defined as land and improvements on land, including condominiums and co-op apartments.

In addition, real property which is not used as a home by the applicant/recipient is presumed to be producing a net monthly income of at least 6% of the net market value. Refer to Real Property Not Used as Home for details.

Exception: Motor homes, mobile homes, campers, trailers and boats are to be considered as real property if they are used as a home, unless they are located on land which is also owned by the applicant/recipient.

Ownership

The owner of property, real or personal, is the person or persons who hold legal title to the property.

Example: Property which has been transferred by a GA applicant/recipient to another person will continue to be included in the eligibility determination, if the property was transferred for the purposes of:

• Convenience due to inheritance, or
• To avoid probate, AND
• No beneficial interest remains, i.e., the applicant/recipient retains no right to possess and/or use the property, or to dispose of the property and receive the proceeds.

Example: A GA applicant wishes to avoid probate costs and transfers some property in Florida to a son. This property is still evaluated in the eligibility determination, using “Transfer of Property” rules. Refer to Transfer of Property.

Shared Title

The EW will assume that equal rights to possession, control and use of property, real or personal, are held by all persons named on the title. However, this presumption may be refuted by evidence to the contrary. Some items to consider in the determination include, but are not limited to the:

• Source of funds invested in the property
• Amount of funds invested in the property, and
• Facts of an inheritance.

Note: The above items must be verified in writing from collateral contacts, (e.g., lawyers or relatives).

Separate Property

Separate property is defined as any item that is considered separate property under California Property Law which assumes all property is community property unless proven otherwise. Generally, separate property is:

• Property acquired by either spouse prior to marriage. 
• Property held as separate property in a separate property state. 
• Property acquired by either spouse separately during the marriage as a gift or an inheritance. 
• Property acquired during marriage if purchased with funds which are the separate property of the owner. 

Example: Funds received from the sale of separate property or by gift or inheritance. 

Community Property

Community property, real or personal, is acquired by the husband and/or wife during the marriage, unless it is determined to be separate property as stated above. Refer to Separate Property above. 

Community property includes:

• Property purchased with community funds. These funds may include the earnings of the spouses while married AND living together.
• Income derived from community property.
• Funds received from the sale of community property.
• Property purchased with funds which cannot be identified as separate will be presumed to be community property, UNLESS refuted by documentation which shows the property to be separate.
• Each spouse is presumed to own one-half of any available community property. This may be refuted with written documentation.
• Retirement funds which began while married and living together.

Note: Retirement funds which began when spouses were separated or divorced are not necessarily considered community property.

Encumbrances

Encumbrances will be allowed against the value of personal property, UNLESS specifically disallowed, (e.g., an automobile's GROSS value is used in the property determination.) An encumbrance (debt) must meet ALL of the following criteria:

• The title (if one exists) is being held by the legal owner as security, AND
• The debt must be verified to be:
  • Specifically against an item, AND
  • Expected by the lender to be repaid, or else collection or judgment action will follow nonpayment if appropriate, AND
  • Expected to be repaid by the borrower.
• The debt must be supported by a contract of the lender or his agent, OR
• The debt must be supported by written statements from both the lender and the borrower.

ExampleExample

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Note: Credit card debts are nonspecific and may NOT be allowed as encumbrances.

Related Topics

General Assistance Policies

Availability of Property

Personal Property

Equipment and Materials for Self Employment

Burial Trust

Motor Vehicle

Real Property Limits

Real Property Not Used as a Home

Conversion of Property

Transfer of Property

Period of Ineligibility