Presentation on theme: "Poverty Law 1, MFIP Assets Adjunct Professor Monica Bogucki, 2012 Copyright."— Presentation transcript:
Poverty Law 1, MFIP Assets Adjunct Professor Monica Bogucki, 2012 Copyright
Why talk about assets? ▪ Financial planners for low income people
What is the MDHS Certification for Combined Manual? ▪ http://www.dhs.state.mn.us
General Rule for Assets: The equity value of all nonexcluded real and personal prop. of assist. unit must not exceed $2,000 for applicants and $ 5,000 for ongoing participants Minn. Stat. 256J.20 subd. 3
Is the asset excluded or non- excluded? ▪ What are examples of excluded assets?
What is the asset limit for non- excluded assets? ▪ $2,000 for MFIP-S applicants ▪ $5,000 for MFIP-S participants ▪ Minn. Stat. 256J.20 subd.3
General rule: Count the EQUITY VALUE OF ALL NON-EXCLUDED ASSETS ▪ Equity value means the fair market value of an item minus encumbrances on that item ▪ Minn. Stat. 266J.08, subd. 29 and Minn. Stat. 256J.20 subd. 1 ▪ Example: Stock-10 shares worth $ 30.00 per share =$300.00 ▪ Loan against the stock $100.00 ▪ Equity value of the stock is $200.00
Example ▪ Ann and Joe are married and jointly own their home. She just obtained an Order for Protection against Joe. She is afraid to live in home for several months pending the outcome of the criminal charges against Joe. They are receiving MFIP-S. ▪ Will the county count the home against her asset limit? Minn. Stat. 256J.20, subd. 2(a)(4)
Example ▪ Sally just went through a divorce. The marital home ▪ was sold for $150,000. Her cash portion of the ▪ home is $ 50,000 She plans on downsizing ▪ She is on MFIP-S, will the county count the $ 50,000 to her asset limit?
Example ▪ Sally is thinking about investing her ▪ $ 50,000 in a nice manufactured or mobile home. She wants to know if this will be counted towards her MFIP-S asset limit?
▪ Markeeta owns a home worth $ 75,000. Will this impact her eligibility for MFIP-S?
Vehicles ▪ Licensed vehicle up to a LOAN value of less or equal to $10,000.00 ▪ Minn. Stat. 256J.20, subd. 3
Marie and Donald have a car with a loan value of $ 9500.00 Hyundai Elantra, they also have a second car 2003 Toyota $ 5,000 loan value. Will they be eligible for MFIP?
The Johnsons have a van with special medical adaptions for a wheelchair. They have a son with physical disabilities. The van has a loan value of $ 20,000. They need the van to transport him to medical appointments. Will they be eligible for MFIP?
The Michaels have a car with a NADA loan value of $ 17,000, but the car was totaled with hail damage? Would they be eligible for MFIP?
Example ▪ Jim is a single father of two children. He recently lost his job and is receiving MFIP benefits. He has a high school education and has always wanted to become an electrician. He started his training this fall. He has $8,000 in school loans, grants and scholarships after paying for tuition, books for this semester. ▪ He wants to know if this will affect his MFIP- S benefits?
What would you advise the following family? ▪ The Johnsons are ongoing MFIP recipients. They are getting ▪ $ 6,000 in earned income tax credit (EITC) this year. They have: ▪ no savings, $1,000 consumer credit card debt, ▪ a car worth $ 600.00. ▪ How long do they have to spend down the EITC if they chose to spend it? ▪ What are their options?
What are the rules for legal availability? ▪ The county agency must use the equity value of the legally available real and personal property. ▪ The property is presumed to be legally available to the applicant or participant unless the applicant or participant documents that the property is not legally available. Minn. Stat. 256J.20 subd 1 (b)
Joint ownership ▪ Jean has a joint checking account with her elderly mother. There is $ 2,000 in the account. Jean is a MFIP-S recipient. How will the county view this account?
Joint ownership ▪ Jean and her elderly mother also have stocks in joint ownership. ▪ The stocks are valued at $ 500.00 ▪ How will the county view the stocks?
Please advise Tom and Sally Jones ▪ Tom and Sally have two minor children, Sara and Abbie. Tom is a carpenter and was injured on the job. He is now receiving a worker compensation settlement of $ 35,000. Tom and Sally have been on MFIP for 1 year. ▪ They own their own home-principal balance is $ 40,000 ▪ Their car is worth $ 3500 and needs about $ 600.00 in repairs ▪ See next slide for more information
More Information about Tom and Sally $3,000 in consumer debit Tom wants to upgrade his tools for work $ 700.00 $200.00 in savings $25.00 in checking No other liquid assets What are their options?
Reporting Requirements Duty to report changes within 10 days ●Minnesota Statute 256J.30 subd 9
Scenario Marie and Joe have a nine-month old baby. Marie and Joe lose their jobs due to a recent factory closing. They lose their home. They are living in a modest recreational vehicle that has no encumbrance against it. It is worth $14,000. They are participants in the MFIP-S program. Will the recreational vehicle count as an asset?
Your consent to our cookies if you continue to use this website.