Difference between revisions of "Welfare Eligibility (21:III)"

In order to be eligible for income assistance, PPMB assistance, or disability assistance, applicants must exhaust their assets. As noted above, welfare is a “payer of last resort”. Accordingly, the EAR (ss 11-13) and the EAPWDR (ss 10-12) set out limits on which assets a person can possess and still remain eligible for income assistance, PPMB assistance, or disability assistance.

Asset limits vary depending on the size of the family unit receiving welfare and the type of welfare the family unit is receiving.  

Read the EAR (ss 1 and 11-13) and the EAPWDR (ss 1 and 10-12) carefully to identify the asset criteria. and note in particular the definitions of “asset”, which is set out in s 1 of the EAR and EAPWDR.  

The following table summarizes the asset limits for different family sizes applying for or receiving different forms of welfare. A more detailed table is available at http://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/bc-employment-and-assistance-rate-tables/asssets-rate-table.  

Sections 11(1) of EAR and s 10(1) of EAPWDR should be reviewed in detail to see if any of a person’s particular assets are exempt, i.e. do not count toward their asset limit. Some key exempt assets are:  

*clothing and necessary household equipment;

*vehicles (limit one per household and only if used for day-to-day transportation needs) A person who is applying for or receiving income assistance or PPMB assistance, can have a vehicle with up to $10 000 equity in it as an exempt asset. This equity limit does not apply to someone applying for or receiving disability assistance, whose primary vehicle is exempt with no limit on the amount of equity in it. The equity limit also does not apply to people receiving or applying for income assistane or PPMB benefits if the disability-related conditions in section 10(4) of the EAR are met. For all applicants and recipients, a second vehicle is not exempt and is counted toward asset exemption limits.;

*a family unit's place of residence;

*a child tax benefit or GST credit under the Income Tax Act (Canada);  

*A BC early childhood tax benefit;

*a sales tax credit under the Income Tax Act (British Columbia);

*a registered disability savings plan or “RDSP” (see http://www.rdsp.com for more information);

an uncashed life insurance policy with a cash surrender value of $1 500 or less; '''and'''

Section 12 of the EAR and s 11 of the EAPWDR provide that the MSDSI may approve savings accounts for the purpose of “future self-sufficiency”, and that these accounts will be exempt assets.   

Under s 13 of the EAR and s 12 of the EAPWDR, assets of up to $200 000 can be held in a non-discretionary trust for a person with PWD status (or an applicant for PWD status, or for another individual with disabilities in certain circumstances) without disqualifying the person from income assistance or disability assistance. There is no limit on the amount that may be held in a discretionary trust.