Personal Property

An applicant or recipient who owns nonexempt personal property with an equity value in excess of $500.00 shall not be eligible for aid. The net market value of nonexempt personal property shall be verified by the Department.

The $500 personal property limit applies to a total of the following items. The following are examples of personal property and verifications needed to substantiate property:

Cash-on-Hand

Cash on hand is defined as any cash the client has in his/her possession. The client's statement is satisfactory verification.

Bank Accounts

Bank accounts are defined as:

Checking
Savings
Money Market Accounts etc.

Acceptable Verification

The following items must be dated within the prior 30 days and include the bank name, account number, and account balance:

Current Bank Statement.
Bank Teller Statement (automatic or personal).
Passbook balance entry, dated and initialed by bank personnel.

Unacceptable Verification

An applicant/recipient's:

Personal passbook balance.
Unidentified note.
Automated teller statement that does not include all of the required information.
Outdated bank statement.

Note: Income is not countable as personal property in the month of receipt.

Trust Funds

Trust funds are usually verified by documents in the applicant's/recipient's possession.

Trust funds established WITHOUT a court order are assumed to be totally available to the beneficiary unless verification is obtained confirming the fund is conditionally, partially, or not available.
A trust fund established by a court order, which defines conditions of release of the funds, is NOT available to the beneficiary until those conditions are met or a petition to void or modify those conditions is granted by the court.
- The court must be petitioned within 30 days of the date of application. Verification of the petition is required.
- No other petition is required unless a court's denial of the petition contains a specific time limit, or a condition develops under which the funds will be released, as established by the court.
- During the time the court is being petitioned, or if the court refuses to issue a final order, the fund will be exempt and aid may be granted.
- Time limits for checking on the receipt of the results of such petition will be every three months, and the case must be ticklered accordingly.
- When the court denies or grants the petition in all or in part, eligibility must be redetermined.
- If the individual in control of the fund refuses to petition the court within 30 days, and the fund, with other personal property, exceeds the property limit, the applicant/recipient for whom the funds are held in trust is ineligible for aid.
If the fund, in combination with other personal property, exceeds the property limit, the individual in control of the fund will be expected to either reduce other assets or petition the court to determine the fund's availability and request release of the fund for the applicant's/recipient's support.
Document all activities involved in determining the fund's availability in a CalSAWS Journal Entry. Documentation must identify the beneficiary and individual in control of the fund, where the fund is held, general conditions for release, and current value.

Securities

The value of securities is to be determined at the time of application, and reevaluated at each reinvestigation thereafter.

Stocks

The current market value of stocks is most easily determined using the daily newspaper listing of price per share. If the stock is not listed, the EW must contact a local brokerage firm.

Recorded documentation will include the name of the stock, number of shares, and current share and/or total values.

Bonds

The value of U.S. Bonds is determined by contacting any bank or institution where they may be liquidated. Documentation must include the bond type, face value, series number, serial number, date of issue, and current bond and/or total values.

Notes, Mortgages, Trust Deeds, Promissory Notes, Annuities

Value of notes, mortgages, trust deeds, or annuities is usually determined by documents in the applicant's/recipient's possession. Determine the current value of the note (face value minus the unpaid balance). If the remaining balance added to other nonexempt personal property exceeds the personal property limit, the applicant is ineligible. If the applicant disagrees with the value, an appraisal of the note by a qualified appraiser is acceptable.

Other Personal Property

Other personal property includes, but is not limited to the following:

Claims on estates
Insurance judgments
Civil judgments
Business interests
Oil leases and mineral rights.

Life Insurance

Life insurance means a contract for which premiums are paid during the lifetime of the insured, and on which the insuring company pays the face amount of the policy to the beneficiary upon the death of the insured. Life insurance may also be purchased by a single premium or by letting dividends accumulate.

The following are definitions regarding life insurance policies:

CASH SURRENDER VALUE (CSV) - The CSV is the amount of money which can be borrowed by the owner of a life insurance policy. Loans may be made against the CSV and are deductible from the CSV, if verified.The value of the CSV varies and may usually be obtained by viewing charts which accompany the policy.
FACE VALUE - The face value is the amount which the policy is worth if all premiums have been paid, and if the insured beneficiary died.
TERM INSURANCE - Term insurance is insurance which is payable only upon the death of the owner for which the insurance is purchased. There is no CSV.
WHOLE LIFE INSURANCE - Whole Life Insurance has a cash surrender value.

Verification

Verification of the CSV consists of making copies of the actual life insurance policy, and the CSV tables which are attached to the policy, or a letter from the insurance company. The applicant is not eligible until verification is received. All verifications received are scanned to Imaging.

Determination of Value

Determine the age of the owner of the policy on the date of the policy issuance.
Determine the years that the policy has been in force.
Use the chart attached to the policy to compute the value per $1,000, or other stated amount.
Multiply the value per $1,000, times the number of thousands in the face value of the policy. The result is the CSV of the policy.

Loan Documentation

The applicant/recipient may have a loan against the value of the CSV. The current CSV value must be obtained in writing from the lender. The applicant recipient must be allowed five working (5) days to obtain this verification.

Note: If the applicant/recipient needs additional time to obtain the necessary verification(s), the EW must use prudent judgment in allowing additional time. Many lenders take three to eight weeks to provide this verification.

Annual Verification Requirement

CSV must be verified annually at reinvestigation.