Which resources count in determining eligibility for the low-income subsidies?
The amount of help available to low-income beneficiaries depends on the amount of many types of resources they own, also known as countable assets. In general, Supplemental Security Income (SSI) rules will be used to determine if beneficiaries meet the resource limit for the low-income subsidies. Beneficiaries in 2008 who have more than $11,990 in countable resources (or more than $23,970 for a married couple) cannot get the low-income subsidies, even if they meet the income criteria.
Countable resources generally include those that can be turned into cash within 20 days. These are called liquid resources. Real estate that is not the beneficiary's primary residence is also a countable resource.
The beneficiary's primary home does not affect his/her eligibility for a low-income subsidy. Other non-liquid resources (such as a car) that cannot be quickly turned into cash will not be counted in determining one's eligibility for a subsidy.
Examples of common resources that count are:
- bank accounts (checking, savings or certificates of deposits or CDs)
- stocks, bonds, savings bonds, mutual funds, individual retirement accounts (IRAs)
- cash at any other financial institution or at home
- life insurance policies (cash value: If you turned in your policy right now, how much money would it be worth?)
- real estate other than the beneficiary's primary home
A beneficiary can designate up to $1,500 for his/her funeral and burial expenses and an additional $1,500 for his/her spouse's funeral and burial expenses. If a beneficiary has designated $1,500 (or $3,000) for these purposes, it will not be counted.
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