5430 Exempt Personal Property - The resource value of the following classifications of personal property shall be exempt. However, if such property is transferred to a trust, it loses its exempt status as the trust becomes the legal owner of the property.
"See Policy Memo #02-10-02 re: "Prearranged funeral and burial agreements and excess funeral funds".
Essential
for Employment - Property
which is essential to the employment or self-employment of the individual
is exempt. This would include property such as tools of a tradesman,
farm machinery, livestock, stock and inventory of self-employed person
that are reasonable and necessary in the production of goods or services,
vehicles, business checking account, or other business property where
the person is still actively involved as a manager. Income from such
property would usually be considered as earned income.
If the property is not in current use, it may be exempted under this
provision as long as the individual expects to resume its use within
1 year of the date of last use. This period can be extended an additional
year if the individual has a disabling condition which prevents him
or her from resuming the activity within the first year. Documentation
is required. If the individual does not expect to resume use of the
property, it shall be counted in full.
Property essential to the self-employment of a household member engaged
in farming shall continue to be excluded for one year from the date
the household member terminates the self-employment farming.
Home
Consumption Items - Items for home consumption.
These items consist of produce from a small garden, a small
flock of chickens or other fowl, a cow, a pig, or other animals used
to meet the food requirements of the family.
Home Sale Proceeds
- The proceeds from the sale of a home are exempt if the proceeds
are conserved for the purchase of a new home and the conserved funds
are expended or committed to be expended within 3 months of the sale.
Any of the proceeds so conserved that are used for any other purpose
shall be considered under the transfer of property provisions for
persons in institutional or HCBS living arrangement. See 5720.
Household Goods
- Household equipment and furnishings in use or only temporarily
not in use. These consist of such items as dishes, tableware, cooking
utensils, canning equipment, bedding, and household linens, beds,
mattresses, stoves, and refrigerators.
Income Producing
Property - Property (other than cash assets), which produces income
consistent with its fair market value is exempt in full, even if used
only on a seasonal basis. This would include property such as vehicles,
farm equipment or business inventory which are rented or part of an
ongoing business where the individual is no longer actively involved
in the management of the business. Inventory also includes livestock
or grain in storage which are sold on a regular basis as the market
permits. Generally income from such property would be considered unearned
income. See 6313 (1) regarding self-employment
income.
When it is necessary to determine if the property is producing income
consistent with its fair market value, local realtors, tax assessors,
the Small Business Administration, or other similar sources may be
contacted to determine the prevailing rate of return (e.g., square
foot, rental, etc.) for similar usage of the property is the area.
If it is determined that the property is not producing income consistent
with its fair market value (for instances, the property is being leased
for a token payment), such property would be counted as a resource.
However, if the property was leased for a return that was comparable
to other property in the area leased for similar purposes, it would
be considered as producing income consistent with its fair market
value and would not be considered a resource.
If the property is not in current use, it may be exempted under this
provision as long as the individual expects its use to resume within
1 year of the date of last use. If the individual does not expect
use of the property to resume, the property shall be counted in full.
Individual Development
Accounts (IDAs) - IDAs which meet the guidelines specified in
6410.
Insurance
- For all programs the cash value of life insurance policies
is exempt.
Kansas
Investments Developing Scholars (K.I.D.S.) Match Grant Program - K.I.D.S. is a form of a Learning
Quest 529 account available to a limited number of participants with
earnings below 200% of the poverty level. A Participant Account and
a Match Account are established through Learning Quest. The amount
in both the Participant Account and in the Match Account are exempt
as resources. Refer to 6410 Educational
Income.
Learning Quest /Coverdell Education Savings Account/ and Other 529 Educational Savings Plans - These plans are exempt for all programs.
Food Assistance and Child Care -The cash value of pension plans or funds, including 401 (k) plans, IRAs, and Keough plans are exempt. All retirement plans are exempt for food assistance and child care purposes. See a list of excluded retirement plans in the Appendix, item T-12.
Cash
Programs - The cash value of pension plans
or funds are exempt.
Exceptions: Keough plans that involve no contractual
relationship with individuals who are not household members, individual
retirement accounts (IRA's) and 401(k) plans are not exempt. In
addition, if an individual is retired or claiming disability and
not drawing benefits to which they are entitled, the cash value
of the pension plan or fund is not exempt.
NOTE: Loans taken against 401(k) plans are treated in accordance
with 6410.
Personal
Effects - Personal effects and keepsakes
are exempt. Personal effects are items such as a watch, clothing,
books, comb and brush. Personal keepsakes are items such as gifts
kept for the sake of the giver, items with sentimental value, and
the like. Family pets are also exempt under this provision.
TANF/SSI
Recipients - For food assistance, the resources of any household
member who receives TANF or SSI benefits shall be exempted for purposes
of the Food Assistance Program. This includes resources jointly owned
by recipients who receive TANF or SSI with those who do not.
Persons are considered recipients if their TANF or SSI benefits are
recouped to the point that no actual payment is made. Persons are
also considered recipients if their TANF is suspended for one month
due to excess income per 1512.5.
For households in which all members receive TANF or SSI, refer to
2510 for a description of the categorical eligibility provisions.
Tools - Tools in use. Tools
consist of such items as hammers, saws, wrenches, planes, pliers,
hoes, rakes, and similar articles necessary for the maintenance of
house, garden, or yard.
Vehicles - See 5500 and subsections.