801—10.16 (35D) Assets. The following rules specify the treatment of assets, as defined in rule 801—10.1(35D), in the payment of member support as described in rule 801—10.14(35D). Only liquid assets shall be considered in the payment of member support.
	 10.16(1) For members living on Title XIX certified units who have applied for and are eligible to receive Title XIX medical assistance, rule 441—75.5(249A) shall apply. Financial eligibility for Title XIX shall be determined by the department of human services income maintenance worker.
	 10.16(2) For members not living on Title XIX certified units and those living on Title XIX certified units but not eligible for Title XIX medical assistance, the following rules apply:
	  a.   	 Assets considered. The assets considered shall include all assets owned by the member, or if married, both the member and the spouse living in the community, except for the following:
	 (1) 	 The homestead is exempt as follows: The exempt homestead is defined as the house, used as a home, and may contain one or more contiguous lots or tracts of land, including buildings and appurtenances. Contiguous means that portions of the homestead cannot be separated from the home by intervening property owned by others. However, the homestead is considered contiguous if portions of it are separated from the home only because of roads or other public rights-of-way. Property that is not exempt as part of the homestead shall be treated in accordance with the rules of this chapter.
The homestead, as defined, can retain its exempt status for a period of time not to exceed 36 months, while the member, spouse and dependents are temporarily absent, provided the following conditions are met:
	  1. 	 There is a specific purpose for the absence.
	  2. 	 The member, spouse or dependents intend to return to the homestead when the reason for the absence has been accomplished.
	  3. 	 The member, spouse or dependents can reasonably be expected to return to the home during the 36-month time limitation.
	  4. 	 If a person is an applicant at the time the homestead becomes vacant due to the absence of the applicant, spouse or dependents, the first month of the 36-month period is the month of admission to IVH.
	  5. 	 If a person is a member when the homestead becomes vacant due to the absence of the member, spouse or dependents, the first month of the 36-month period is the month following the month in which the homestead is vacated.
	  6. 	 Any homestead that does not qualify for this exemption or any homestead that is vacant for a period of time exceeding the 36-month limit shall be treated in accordance with subrule 10.16(3).
	 (2) 	 Household goods, personal effects and motor vehicles.
	 (3) 	 The value of any burial spaces held for the purpose of providing a place for the burial of the member, spouse or any other member of the immediate family.
	 (4) 	 Exempt income-producing property includes, but is not limited to, tools, equipment, livestock, inventory and supplies, and grain held in storage.
	 (5) 	 Other property essential to the means of self-support of either the member or spouse as to warrant its exclusion under the Supplemental Security Income program.
	 (6) 	 Assets of a blind or disabled person who has a plan for achieving self-support as determined by the division of vocational rehabilitation or the department of human services.
	 (7) 	 Assets of Native Americans belonging to certain tribes arising from judgment fund and payments from certain land and subsurface mineral rights.
	 (8) 	 Any amounts arising from Public Law 101-239 which provides assistance to veterans under the Agent Orange product liability litigation.
	 (9) 	 Assistance under the Disaster Relief Act and Emergency Assistance Act or other assistance provided pursuant to federal statute as a result of a presidential disaster declaration and interest earned on these funds for the nine-month period beginning on the date these funds are received or for a longer period where good cause is shown.
	 (10) 	 An amount that is irrevocable and separately identifiable, not in excess of $8514 principal, without an itemized billing, for the member or spouse to meet the burial and related expenses of that person.
	 (11) 	 Federal assistance paid for housing occupied by the spouse living in the community.
	 (12) 	 Assistance from a fund established by a state to aid victims of crime for nine months from receipt when the client demonstrates that the amount was paid as compensation for expenses incurred or losses suffered as a result of a crime.
	 (13) 	 Relocation assistance provided by a state or local government to a member or spouse comparable to assistance provided under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 which is subject to the treatment required by Section 216 of the Act.
	 (14) 	 Any other asset excluded by statute.
	  b.   	 Assets of a single member. When liquid assets not exempted in paragraph “a” above are equal to or exceed $2,000, those liquid assets shall be considered an available resource for the payment of member support. These assets shall be considered available for payment of member support until such time that the remaining liquid assets total less than $500, but leaving at least $140.
	  c.   	 Assets of a married member with spouse in a care facility. If a member’s spouse is residing in a nursing facility, including IVH, the member shall be treated as a single member for asset determination purposes. If the spouse is residing in a residential care facility, the rules pertaining to a spouse living in the community apply.
	  d.   	 Assets of a married member with spouse living in the community. When liquid assets not exempted in paragraph “a” above are equal to or exceed $2,000, those liquid assets shall be considered an available resource for the payment of member support. These assets shall be considered available for payment of member support until such time that the remaining liquid assets total less than $500, but leaving at least $140.
The assets attributed to the member shall be one-half of the documented assets of both the member and spouse living in the community as of the first day of admission to IVH after the first $24,000 is exempted for the community spouse. However, if one-half of the resources is less than $24,000 (the amount set by 441 IAC 75.5(3)“d” and “f,” Public Law 100-365 and Public Law 100-485), then that amount shall be protected for the spouse living in the community. Other resources attributed to the spouse living in the community shall be determined by the department of human services through the attribution process.
	 (1) 	 If the member has transferred assets to the spouse living in the community under a court order for the support of the spouse, the amount transferred shall be the amount attributed to the spouse to the extent it exceeds the specified limits above.
	 (2) 	 After the month in which the member is admitted, no attributed resources of the spouse living in the community shall be deemed available to the member during the continuous period in which the member is at IVH. Resources which are owned wholly or in part by the member and which are not transferred to the spouse living in the community shall be counted in determining member support. The assets of the member shall not count for member support to the extent that the member intends to transfer and does transfer the assets to the spouse living in the community within 90 days.
	 (3) 	 Report of results. The department of human services shall provide the member and spouse and legal representative, if applicable, a report of the results of the attribution. The report shall state that either has a right to appeal the attribution in accordance with rule 801—10.45(35D).
	  e.   	 Exception based on estrangement. When it is established by a disinterested third-party source and confirmed by the commandant or designee that the member is estranged from the spouse living in the community, member support shall be determined on the basis of resources of a single member.
	 10.16(3) When a member owns an available, nonliquid, nonexempt asset, the value of which would affect the computation of member support as described in rule 801—10.14(35D), the asset shall be liquidated. The value of that asset shall be considered in the computation of member support. The following paragraphs are to be considered when liquidating assets:
	  a.   	 Net market value, or equity value, is the gross price for which property or an item can be sold on the open market less any legal debts, claims or liens against the property or item. IVH shall consider the condition and location of an item or property and local market conditions in determining the gross sales price of the item or property. In order for a loan or claim to be considered a lien or encumbrance against an asset, the loan or claim must be made under circumstances that result in the creditors having a recorded legal right to satisfy the debt.
	  b.   	 An asset must be available in order for it to be treated in accordance with the rules of this chapter. An asset is considered available when:
	 (1) 	 The member owns the property in part or in full and has control over it; that is, it can be occupied, rented, leased, sold or otherwise used and disposed of at the member’s discretion; and
	 (2) 	 The member has a legal interest in a liquidated sum and has the legal ability to make the sum available for member support.
	  c.   	 A member must take all appropriate action to gain title and control of any asset of which the value would affect the computation of member support.
	  d.   	 The value of the asset may be adjusted if the member or legal representative:
	 (1) 	 Advertises the asset for sale, through appropriate methods, on a continual basis.
	 (2) 	 Lists the asset with a real estate broker or other agent appropriate to the asset.
	 (3) 	 Asks a reasonable price which is consistent with the asking price of similar items of property in the community.
	 (4) 	 Does not refuse a reasonable offer.
	 (5) 	 Does not sell the asset for an unreasonably low price.
	  e.   	 Cash proceeds from the sale of an asset, conversion of an asset to cash, or receipt of any cash asset as defined in rule 801—10.1(35D) shall be used in the computation of member support beginning with the calendar month of receipt.