Although certain assets are exempt, verify their existence, and document them in the case record.
Exempt assets can be combined with nonexempt assets, as long as you document their source and amount in the case record. The exempt portion of a combined asset remains exempt. The amount of the combined asset that is greater than the exempt asset is
nonexempt, and is applied to the asset limit. If the total combined assets fall below the amount of the exempted assets, only the lowest balance remains exempt.
Example 1: Ms. S and her child receive TANF Cash. On 05/15 Ms. S's bank account balance was $2,000. On 06/17 Ms. S received and deposited a $500 exempt asset into the existing bank account. At no point prior to the next
REDE did the bank account fall below $2,500. The $500 payment is exempt at the REDE. The remaining $2,000 is applied to the asset limit.
Example 2: Ms. A and her child receive TANF Cash. On 06/27 Ms. S's bank account balance was $1,500. On 07/14 Ms. A received and deposited a $2,000 exempt asset into the existing bank account. The total amount of assets
not counted at the REDE is $3,500 (the $2,000 payment is exempt as an asset, and the $1,500 is applied against the asset limit of $3,000).
Several months later, Ms. A withdraws $1,800 from the combined asset account. The exempt asset is now only $1,700 ($1,500 + $2,000 = $3,500 - $1,800 = $1,700).