317:35-5-41.1

Sale of the Home

When the client intends to purchase another home

• Reasonable period of time is given
  • Not to exceed 90 days
  • Extensions beyond the ninety (90) days may be given only after there’s a conversation with the client to determine that:
    • A good faith effort is still being made; or
    • Completion of the transaction is beyond the client’s control.
  • Document the conversation in case notes
• If the new home is of equal or greater value to the previous home, there’s no impact on eligibility
• If the new home is of lesser value than the previous home, the difference may be invested in improvements to the new home.

When the client decides not to purchase another home

• Discuss with the client the plan for use of the money from the sale
  • Review the following policy and articles to determine if or how the use of the money is counted towards eligibility
    • Purchase of household goods, such as TV’s, stoves, furniture, clothes, etc., are not counted [317:35-5-41(a)(5)]
    • ABLE account Updated ABLE Accounts
    • Funeral Contract Updated ABLE Accounts
    • Life Insurance Life Insurance: Overview
    • Special Needs Trust Special Needs Trust
    • Resource – Bank Accounts

Insurance Payment for Damage to the Home

When the client intends to repair the home

• Reasonable period of time is given to schedule or make the repairs
  • Not to exceed 90 days
  • Extensions beyond the ninety (90) days may be justified only after
    • The member is Interviewed to determine that a good faith effort is still being made; or
    • That completion of the transaction is beyond the client’s control.
    • The conversation is documented in case notes

When the client does not intend to repair the home

• Discuss with the client the plan for use of the money from the sale
  • Review the following policy and articles to determine if or how the use of the money is counted towards eligibility
    • Purchase of household goods, such as TV’s, stoves, furniture, clothes, etc., are not counted [317:35-5-41(a)(5)]
    • ABLE account Updated ABLE Accounts
    • Funeral Contract Updated ABLE Accounts
    • Life Insurance Life Insurance: Overview
    • Special Needs Trust Special Needs Trust

Example 1:

Edward Bouchet has an open ABD case. He is living with friends after a fire caused extensive damage to his house. The house will have to be torn down and a new structure built. The Indio Insurance Company sent him a check for $100,000 to start the work. The contractor hired to do the work estimates it will take a minimum of two years to complete the work. Since he has a viable plan and an estimated time to return to living in the home the home retains its exemption and the money received from the insurance is exempt.

Example 2:

Marie Daly sold her home. She had found a new house and had made an offer that was accepted. The home inspector had found roof damage that needed to be fixed. The seller has said a roofing contractor had been hired but they would not start for two more weeks. Marie’s realtor confirms it will be at least two weeks before the roof is repaired before the closing can be scheduled. The money from the home sale can be exempt till Marie closes on the new house.