Pickle Definitions

Actual Value (AV)

For determining In-Kind Support and Maintenance (ISM), the current market value (CMV) is divided by the number of people receiving support and maintenance minus any payment made out of an applicant's/client's own funds. If the applicant/client makes no payment, the AV and CMV may be the same amount.

Couple

When determining Pickle eligibility, the following are defined as a couple:
Pickle eligible applicant/client living with an ineligible spouse.
Pickle eligible applicant/client living with an eligible spouse.
Ineligible parents of a Pickle eligible child.
Any two persons who are representing (“holding out”) themselves to the community as a couple.

Current Market Value (CMV) or Current Market Rental Value (CMRV)

The amount for which an item would sell or rent on the open market. The CMV may be based on factors such as the assessed or appraised value. The CMRV may be affected by the size and location and the amount of rent paid by other tenants.

To determine the CMRV for ISM purposes, contact the owner of the property. Accept this statement as to the fair market value of the property. If the owner of the property either refuses to place a value or has no knowledge of its value contact a knowledgeable source. For this purpose, examples of knowledgeable sources are rental management agencies, real estate firms, trailer park proprietors, housing authorities, or individuals that rent facilities similar to the shelter occupied by the applicant/client.

Dependent Relative

For purposes of determining the principal residence exclusion, the following are considered as dependent relatives: son, daughter, grandson, granddaughter, stepson, stepdaughter, mother, father, in-laws, stepmother, stepfather, half sister, half brother, niece, nephew, grandparents, aunt, uncle, sister, brother, stepbrother, stepsister.

Verify the basis for the dependency (e.g., medical or financial), that the dependent continues to reside in the home and the relationship between the applicant/client by personal contact. Document findings on the Journal Detail page.

Discounted Amount

The current market value (CMV) of a negotiable contract, note, mortgage, etc.

Equity Value (EV)

The assessed actual value (AV) or current market value (CMV) of an item less any legal encumbrances on the item.

Excludable Equity Value

Equity value in a resource which may be excluded from resource limits.

Home

Any shelter in which the applicant/client (or spouse with whom the applicant/client lives) has an ownership interest, and which is used by the applicant/client (and spouse, if any), as his principal place of residence. The home may be either real or personal property, fixed or mobile, and located on land or water. The home includes all the land that pertains to it and the buildings located on such land. Home property may be separately or jointly owned or ownership may be in the form of a life estate.

Household Expenses

The only household expenses to be considered when determining ISM amounts are:

Food
1. Note: Documentary evidence is never required for the food expense. Accept the applicant/client's statement as documentation. Do not consider the value of food stamps as a household expense.
Mortgage (including property insurance required by the mortgage holder) or rental payments.
1. Note: Mortgage/Rental Payment - When there is no mortgage or rental payment, (e.g., a member of the household other than the applicant/client owns the home and it is paid for) or there is no rental payment due to a rent subsidy provided by a government agency, the amount of ISM for this item is zero.
Real property taxes (less any tax rebate/credit).
Utilities - including: gas, electricity, heating fuel, water, sewer, garbage.

Immediate Family

An eligible applicant/client's minor or adult children, step-children, and adopted children; brothers, sisters, adoptive parents, and the spouses of these persons, but does not include members of an ineligible spouse's family. Dependency and living-in-the-same-household are not factors.

Independent Living Arrangement

A living arrangement in which an individual:

Is living in his/her own household, or
Is living in the household of another but is not receiving both food and shelter from someone within the household.

Ineligible Spouse

In the Pickle program, an “ineligible spouse” is one who does not meet the financial eligibility tests in the screening process and is, therefore, ineligible as a Pickle person.

In-Kind Support and Maintenance (ISM)

ISM is unearned income in the form of free or partially free food or shelter. This includes ISM provided to agricultural or domestic employees.

Institutionalization

In determining whether a principal residence can be excluded during an extended absence the following steps must be taken to verify institutional status:

Accept the applicant/client's or dependent relative's statement regarding dependency unless there is reason to question.
A signed statement, from the applicant, the spouse, or the dependent relative indicating that the dependent relative or spouse resides in the home, must be obtained.
1. If the applicant/client intends to return to the home, a signed statement from the applicant/client must be obtained. The statement must identify:
  1. The reason for his/her absence from the home.
  2. If he/she intends to return.
    1. This statement is accepted without challenge unless the statement is self-contradictory. If so, obtain clarification from secondary sources such as a physician, close relative or other knowledgeable person.

Items of Unusual Value

Items which have a significant resale value over an extended period of time. May include, but not limited to china, silver, glassware, art works, Oriental and similarly valued carpets, antiques, heirlooms, musical instruments, hobby collections, furs. CMV of over $500 establishes that the item is of unusual value. Equity value of these items is used in the resource determination.

Life Estate and Remainder Interest

A life estate conveys upon an applicant/client or individuals for his/her lifetime (irrevocable) certain rights in property. It's duration is generally measured by the lifetime of the owner of the life estate (life estate holder). The life estate holder has the right of property and the right to sell his/her life estate interest. However, the written contract establishing the life estate may limit some of these rights. He/she does not have title to the property if he/she does not have the right to sell the property.

Where the owner conveys property to another person for life (life estate holder) and to a second person (the remainder man) upon the death of the life estate holder, both a life estate interest and a remainder interest have been created.

Liquid Resources

Resources which are in cash or payable in cash on demand. The most common types are savings accounts, checking accounts, stocks, bonds, and mutual funds, promissory notes and mortgages. Liquid resources, except cash, are valued according to their equity value.

Nonliquid Resources

Anything not countable as a liquid resource including real and personal property. Nonliquid resources are evaluated according to their equity value.

Non-Medical Out of Home Care (NMOHC)

A protective living arrangement outside of the recipient’s home where he/she receives room and board, as well as personal non-medical care and supervision related to his/her individual needs.

Parent

A natural parent, an adoptive parent, or the spouse of a natural or adoptive parent.

Presumed Maximum Value (PMV)

An amount equivalent to one-third of the applicable Federal Benefit Rate (FBR) plus $20 (any income exclusion). The PMV rules apply to in-kind support and maintenance (ISM) which is countable as unearned income. The PMV never applies to earned income. Use of the PMV in determining an applicant's/client's countable income is rebuttable by documenting that the actual value of the ISM RECEIVED IS LESS THAN THE PMV. The lesser of these two amounts is always used, but never an amount greater than the PMV, regardless of the number of sources of such income or the variety of living arrangements in any given month.

Principal Place of Residence

Where an applicant/client has established his/her domicile. That is, the dwelling the applicant/client considers to be his or her fixed, established, or principal home, and to which, whenever absent, he/she intends to return. However, if the applicant/client leaves such dwelling and enters long-term care and his/her spouse or dependent relative still resides there the applicant/client's intent to return is irrelevant in determining principal place of residence.

Consider the following when determining the Principal Place of Residence:

A home owned by an applicant/client (or spouse living with him/her) is excluded if the home is the applicant/client's principal place of residence.
Only one home at a time may be excluded as the principal place of residence.
Absences from the home do not necessarily affect the determination of the principal place of residence. When the applicant/client is away from the home it continues to be his/her principal place of residence if:
1. The applicant/client intends to return to the home.
2. The applicant/client is in LTC and his/her spouse or dependent relative continues to reside in the home.

Effective the first day of the month following the month in which it is determined that the home is no longer the applicant/client's principal place of residence, the individuals equity in the home is a countable resource.

If there are multiple residences, verify the principal residence by voter registration, address for receipt of benefits or payments or mailing address for tax purposes.

When the applicant/client is living away from the home, intent to return must be confirmed unless absence is based on institutionalization and his/her spouse or dependent relative is living in the home. If no spouse or dependent relative resides in the home intent to return must be verified.

Statements of intent to return or allegations of dependency are acceptable from authorized representatives in situations where the applicant/client is incapable of providing such information.

Property (Real or Personal), Essential to Self-Support

Property used in a trade or business and nonbusiness property which produces income either in cash or in-kind. Property in current use, or that will again be used within one year of its most recent use, for income producing purposes. Business property includes the necessary capital and operating assets of a business, (e.g., real property, buildings, inventory, equipment, machinery, livestock and necessary motor vehicles used in the trade or business). Income from this property is counted as earned income.

Nonbusiness, income producing property means land or nonliquid property which provides rental or other income, but is not used as part of a trade or business. This includes small apartment houses or other structures producing rental income, land which produces rents or other land use fees, (e.g., notes or mortgages, royalties, mineral rights) and similar types of real and personal property. Income from this property is counted as unearned income.

Non-home property previously referred to as other real property that is used in a business or non-business self-support activity is excluded when the applicant's (or spouse's) equity does not
exceed $6000 and the activity produces a net annual return of at least six percent of the excludable equity value. Equity value for this purpose is the CMV minus any legal debts against the property.

A less than reasonable (six percent of the excludable equity value) net return is acceptable when all of the following conditions are met:

The property is used in a business or nonbusiness income-producing operation; and
Unexpected circumstances (e.g., a fire, street repair in front of business, etc.) cause a temporary reduction in the net rate of return; and
1. The annual net rate of return is reasonable in relation to the value of the property; and
2. The applicant expects the property to again produce a reasonable rate of return within 18 months of the end of the taxable year in which the unusual incident occurred. If at the end of the 18-month period the property is not producing a reasonable net return, the property becomes a countable resource.

Rebutting the PMV

The opportunity for the applicant/client to prove that the ISM he/she receives has a lesser value than the PMV.

Recreational Vehicle (RV)

Usually campers, motor-homes, trailers, boats, etc. This resource is treated as household goods and personal effects unless used as a principal residence or as the household’s only mode of transportation. It may also be excluded if used for self-support.

Rent-Free Shelter

Situations where no rent is being paid and there is no legal obligation for the applicant/client to pay. Rent-free shelter never exists when an applicant/client has ownership interest or has made an agreement to pay rent (rental liability). The maximum value of rent-free shelter is presumed to be one-third the applicable monthly FBR plus $20 (any income exclusion). Where the presumed value is rebutted, the CMV is divided among the number of household residents.

Resources

Those assets, including real and personal property that an applicant/client or couple owns. Resources include all liquid assets which are held singly, or jointly which can be accessed by the applicant (e.g., bank accounts, savings accounts, etc.) and all non-liquid assets which are real or personal property (e.g., automobile, land equipment, etc).

An item becomes a resource if retained after the month of receipt. In order to be considered as a resource, property or an interest in real or personal property must have a cash value that is available to the applicant/client upon disposition. In general, an applicant/client with legal title to property has the right to control and dispose of it. If property cannot be disposed of, it is not a resource.

Since resource determinations for Pickle eligibles are made as of 12:01 a.m. on the first day of each calendar month, resource increases during a month do not affect eligibility for that month although they may cause ineligibility in the following month. Conversely, if a person is ineligible, due to excess resources, at 12:01 a.m. on the first day of the month that a person remains ineligible for the entire month.

Sharing

When determining ISM, sharing exists when an applicant/client contributes within $5.00 of his/her pro rata share or an eligible couple contributes within $5.00 of household operating expenses of their combined pro rata shares. A finding of sharing means that no ISM is being received from anyone else in the household. A pro rata share is determined by dividing the average household expenses by the number of household members.

Successful Rebuttal

Evidence obtained that supports a finding that the current market value (CMV) or the actual value (AV) of ISM is less than the PMV. If the PMV is successfully rebutted, the CMV or the AV, whichever is less, is the amount of ISM to be charged.

Value of the One-Third Reduction (VTR)

A method of evaluating ISM. The value assigned, by law, for the ISM which an applicant/client receives while living in the household of another throughout the month. When VTR applies, no other ISM is chargeable. The VTR is equal to one-third the FBR (one-sixth the couple FBR for one member of an eligible couple). The VTR may not be rebutted.