140.3 Personal Property

Personal property includes, but is not limited to, the following:         

55 Pa. Code § 177.2

• Cash on hand

• Bank and credit union accounts, including vacation and Christmas clubs, checking and savings accounts, savings certificates, certificates of deposit (CDs), and money market funds

NOTE:  Interest earned on these accounts is excluded as unearned income (see Section 150.5) and as a resource in the month it was received. Interest remaining in the account after the month of receipt is considered a resource.

• Stocks and bonds

• Mutual funds

• Savings bonds

NOTE:  Interest earned on savings bonds is excluded as a resource and as income in the month received.

• Unrestricted trust accounts

• Burial reserves and prepaid funerals (see Section 140.7)

• Individual retirement accounts (IRAs) and Keogh funds

NOTE:  An early withdrawal penalty does not mean a resource may be excluded. The CAO must deduct the penalty amount from the total before counting the resource.

• Boats, all-terrain vehicles (ATVs), snowmobiles, etc.

• Motor vehicles (see Section 140.5)

• Money gained from selling an item, even if the item itself was exempt as a resource (see Section 140.10)          

55 Pa. Code § 177.1(c)

• Life insurance (see Section 140.4)

Personal property counts towards the budget group’s resource limit if it is owned by or legally available to the budget group or a legally responsible relative (LRR) living with the budget group.            

55 Pa. Code § 177.11

140.31 Ownership of personal property

The CAO may need detailed information to determine ownership of bank accounts or other personal property resources.      

55 Pa. Code § 177.23  

Entireties property is personal property owned by a husband and wife. The consent of both parties is needed to dispose of the property to support children when one spouse is an LRR and the other is not.           

55 Pa. Code § 177.23(a)(3)

A bank account owned jointly by a husband and wife is not entireties property unless proof to the contrary is shown or the account was opened before September 1, 1976.         

55 Pa. Code § 177.23(b)(2)

An account title by itself does not determine that a resource is available. The following rebuttable presumptions apply in determining account availability if there is more than one owner:

• The persons whose names are on the account are the owners.

• If the account uses the words "and", "or", or "and/or", each person listed owns the amount of his or her contributions.

• If the amount of the individual contributions cannot be determined, each person listed owns an equal share.

• If the account is titled "in trust for," the trustee is the owner. Unless there are written trust documents, it is considered a tentative trust, and the beneficiary has no rights to the account until the death of the trustee.

Example: Mrs. Jackson applies for herself and her son, Michael. Michael's grandmother is not a member of the budget group. She has an account titled "Joan Benson in trust for Michael Jackson." There are no written trust documents for the account. This account is not considered in determining eligibility for Mrs. Jackson and Michael.

140.311 Ownership of Trust Funds

A trust fund can be court ordered, testamentary (created by a will), or inter vivos (created by trust agreement or a trust document). See Section 140.32 for verification of trust funds.

If the trust document, court order, or will does not clearly show ownership or legal availability, the CAO must do the following:

• Send a copy of the trust document to the appropriate area manager, who must forward the documents to the Office of General Counsel (OGC) for a determination.

• Include with the trust document a case message containing information that may help OGC determine legal availability, such as a statement from the financial institution and (if known) any past management of the trust.

NOTE:  Many trusts created for minors will not allow distribution of the principal or interest without court approval. The court may specify for what purposes the principal or interest may be used relative to the minor’s care. There are also trusts that require that the trust funds be given out at a future date. The CAO must monitor these trusts closely. They should not be considered available unless there were funds given out.

Unless the trust document clearly states that a beneficiary may get funds from the trust without court approval, OGC must decide when or if it is appropriate for the beneficiary to approach the court. The CAO must refer the question to OGC and exclude the trust from consideration until OGC responds.

• If trust fund monies are available, the CAO must consider any principal as a resource. It must consider any interest earned from the principal as income in the month of receipt and as a resource after the month of receipt.

140.32 Verification of Personal Property

The CAO must verify ownership, legal availability, and equity value of all countable personal property.          

55 Pa. Code § 177.11(a)

The budget group, guardian, trustee, or alien’s sponsor must provide proof of the balance or value of countable personal property at application and at each renewal.

Examples of personal property and acceptable verification include but are not limited to the following:

See Appendix A for information on getting verification of personal property.

Countable equity value may be reduced by early withdrawal penalties or the deduction of commissions. The CAO must verify and record any charges to be deducted from the value.

 Reviewed December 11, 2017. Reissued August 16, 2005, replacing July 12, 2005.