WAG 07-02-03-a: Property Sold During the Exemption Period (Cash)

WAG 07-02-03-a

Once the asset is sold, determine the amount to be repaid to DHS. Notify the client of the amount. To process the repayment complete Payment Transmittal Slip (Form 3021) specifying "repayment for temporary asset exemption". Send the payment and Form 3021 to the Cash Management Recoveries Unit, Bureau of Fiscal Services, in Springfield.

Example 1: Mr. R reduced the face value of his life insurance policy from $2,000 to $1,500 and received $500 in cash. Adding this $500 to the $700 in the bank account, Mr. R has $1,200 in nonexempt assets, which does exceed the asset limit. Mr. R is not responsible for repaying DHS.

Example 2: Mr. S sold his recreational vehicle for $3000. He owes $1,350 on the vehicle. His only other asset is a $1,000 bank account. Determine the amount he has to repay DHS as follows:

$2,000 Asset Limit
-1,000 Other Nonexempt Assets
$1,000 Difference

$3,000 Sale Price
-1,350 Amt. Owed
$1,650 Net Proceeds
-1,000 Difference
$ 650 Balance

Mr. S received $2,000 in cash and medical benefits. Mr. S must repay DHS the entire $650.

Determine the client's ongoing eligibility using current assets.

If an asset is sold for less than the current market value, use the current market value as the net proceeds.

Example: Mr. S's recreational vehicle is valued at $3,000. He sold it to his uncle for $1,000. When determining the amount to repay, use $3,000 as the net proceeds.