6.8 Financial Resources
6.8.1 CONFIRMATION OF FINANCIAL RESOURCES
Section 3 of the Regulation requires that the applicant or participant, and the applicant's or participant's spouse, provide necessary information and evidence in support of the applications. Under normal circumstances, an applicant complies with this requirement by completing and signing the application form.
Confirmation of resources, such as earnings, property, savings, unemployment insurance
benefits, pension benefits and disability benefits, may be required.
A signed authorization by the participant for release of information is part of the
application form. This authorization is applicable to federal, provincial and municipal
government authorities and to any other person, agency or organization. The information
released is to be used by the department solely for determining or verifying eligibility
for assistance and is confidential.
6.8.2 BANK ACCOUNT CONFIRMATION
Directors and designates should use discretion in determining which new and existing
participants require bank account confirmations. Financial resources in bank accounts are
to be confirmed only if there are reasons to believe that participants may be withholding
information about their financial resources which would affect their eligibility.
In communicating with financial institutions, EIA offices may use program form letters
or individual letters.
Procedures to confirm bank accounts
- Regardless of whether the participant has previously reported a bank account or not, the
Department of Finance will be requested to provide the name and address of the bank(s) at
which the participant has cashed two or more assistance cheques. To be able to provide
this information, the Department of Finance requires:
- Participant's name
- Cheque numbers
- Cheque issue dates
- Send appropriate confirmation letter(s) to the bank(s) identified by the Department of
Finance.
See section 19.1.6 entitled Confirming Rental Information.
Most liquid assets considered by the program are accessible within the four-month conversion period permitted under section 4(3) of the Regulation. Although they may be described as "locked in" or "inaccessible" and subject to a financial penalty for early withdrawal, they are to be regarded as accessible. Exceptions are those investments described in their terms and conditions as "non-commutable, non-refundable and non-transferable". See section 14.3.1 for a description of liquid assets.
When an asset is represented as "inaccessible", the only acceptable proof of
its inaccessibility is contained in the terms and conditions which are usually printed on
the face of the investment contract itself.
After the terms and conditions of the asset have been examined, three courses of
action are possible:
- The director or designate may determine that the asset is accessible and calculate the
participant's eligibility accordingly.
- The director or designate may determine that the asset is inaccessible and does not fit
the definition of "liquid assets". Eligibility and budget entitlement should be
calculated as though the asset did not exist.
A copy of the terms and conditions governing the investment is to be retained on the
participant's file, with a Bring Forward (BF) for a few months before the asset's maturity
date. The participant's action plan records the expectation that the asset will be
liquefied upon maturity. If the participant is still enrolled on the BF date, the case
coordinator reminds the participant of this expectation.
- Where the value of the asset is within, or close to, the family's liquid asset exemption
level and the participant would suffer a severe penalty for early withdrawal, or in
other circumstances deemed exceptional, the director or designate may seek approval from
the Minister's designate to enroll the participant, recording the reasons in case notes.
Participants in these circumstances should be advised of their obligation to bring
themselves within the normal liquid asset exemption level at the first opportunity, and
that any additional liquid assets will be considered available for their maintenance and
support.
Liquid Asset Exemption
The liquid asset exemption available to applicants depends on the category of
enrollment and household size, as follows:
- aged applicants and applicants with disabilities:
- up to $2,000 for the applicant, plus $1,000 for their first dependant and an additional
$500 for each additional dependant, to a maximum of $4,000 for the household;
- single-parent applicants, applicants under section 5(1)(f), and applicants
residing in crisis intervention facilities:
- up to $1,000 for the applicant, plus $1,000 for their first dependant and an additional
$500 for each additional dependant, to a maximum of $3,000 for the household;
- general assistance applicants:
- no liquid asset exemption at application.
For more on enrollment categories, see section 6.1.5. For
more on liquid assets, see section 14.3.
A "trust" is a legal arrangement in which a Trustee is given control over the
trust property and assumes an obligation to deal with that property in accordance with the
terms of the trust.
When an applicant or participant reports the existence of a trust fund, the following
questions will assist in determining the appropriate treatment of that trust fund by the
program:
1. Are payments being made to the beneficiary by the Trustee?
Section 8(1.1) of the Regulation requires Trustees to provide the program with information necessary to determine eligibility for assistance. Whether or not payments are being made to the beneficiary, the program is responsible to investigate the accessibility of the trust fund.
If payments are being made to the beneficiary, confirmation regarding the amount and
frequency of the payments should be obtained from the Trustee upon initial application,
and annually, in conjunction with the participant's annual review.
Any cash or in-kind payments made from the trust to, or on behalf of, an income assistance participant are considered unearned income, unless payments can be brought within one or more of the exclusions found in section 8 of the Regulation.
2. Is the trust fund legally accessible to the applicant or participant?
The distinction between "discretionary" and "non-discretionary"
trusts is based on the amount of discretion given to the Trustee.
It is not possible to determine if a trust is "discretionary" or
"non-discretionary" without reviewing the terms which govern the trust. A copy
of the trust document should be obtained and, where there is doubt as to its
interpretation, forwarded to Crown Counsel for a legal opinion.
Beneficiaries do not have an enforceable claim to property held in a discretionary
trust. Unless there is an actual distribution of funds, a participant's interest in a
discretionary trust does not constitute a financial resource for eligibility and/or
assistance calculation purposes. In such cases, it is sufficient to contact the Trustee
annually to request the current value of the trust fund, and a schedule of payments to the
beneficiary, if any. (The participant's annual review provides a suitable opportunity for
this purpose).
3. If the trust is a non-discretionary one, is the beneficiary an adult or a minor?
Adult beneficiaries of non-discretionary trusts are expected to pursue all reasonable steps to access the funds held on their behalf. Such funds are a non-exempted financial resource, unless the total value of the participant's trust funds and other liquid assets is within their liquid asset exemption. In the absence of approval from the Minister's designate under section 5(2) of the Regulation, there is no legislative authority to pay income assistance to an adult participant with non-discretionary trust assets in excess of this guideline, beyond the four-month conversion period.
Even with Ministerial approval, the participant's continuing attempts to gain access to
the trust funds are to be monitored.
4. If the beneficiary of the non-discretionary trust is a minor, does the child's
trust (or some portion of it) qualify for the $25,000.00 exemption?
To qualify for the minor trust exemption, all of the conditions described in section 8(1)(a)(vii) of the Regulation and discussed in greater detail in the liquid assets section (14.3.1) must be met.
Where an unexempted, non-discretionary trust for the benefit of a minor beneficiary
causes total family assets to exceed the appropriate excluded level, the participant is
expected to take all reasonable steps to gain access to the excess amount.
When unexempted trust funds are successfully accessed, the minor beneficiary is removed
from the household's assistance budget until the household's total liquid assets
(including the non-exempt trust funds) are brought within the allowable liquid asset
level. When unexempted trust funds are not successfully accessed, approval must be
obtained from the Minister's designate to continue assisting the minor. EIA staff monitor
participants' ongoing efforts to gain access to the trust funds.
The current value of a minor's non-discretionary trust fund, and whether or not the
fund is being accessed for his or her maintenance, is confirmed with the Trustee at the
time of the participant's annual review and documented in case notes.
5. What happens if at some time the value of the child's non-discretionary trust
assets exceed $25,000.00?
The amount in excess of $25,000.00 is to be considered a financial resource available to the participant. Staff are to ascertain whether all or some of the excess is exempt under section 8(1)(a) of the Regulation. If excess non-discretionary trust funds remain after all asset exemptions are applied, they are treated in the same manner as non-discretionary minor trust funds that do not qualify for an exemption (see point 4 above).
See section 14.1.
See section 14.2.
See sections 14.1.3 to 14.1.4 and 14.2.4.
Income received from sources such as pensions or earnings during one month shall be
considered a resource for the following month, subject to policy in section 24.2.3 which refers to income received prior to
application
See Section 14.2.5.
See sections 15.1.1 to 15.3.2.
The earnings exemption or work incentive available to applicants depends on the
category of enrollment (for more on enrollment categories, see section
6.1.5), as follows:
- aged applicants and applicants with disabilities:
- up to $50 per household per month
- all other applicants:
- up to $100 of net monthly earnings, for each employed or self-employed household member.
If any non-exempted earnings remain on hand or on deposit after applying the earnings
exemption described above, they are considered to be a liquid asset. As such, they may or
may not be exempt, depending on the applicant's category of enrollment and household size.
(For more on earned income, see section 16.1. For more on
liquid assets exempted at application, see section 6.8.4. For
more on work incentive provisions after enrollment, see sections
16.1 to 16.2).
If a single general assistance applicant has earnings and no shelter
costs, the exit point may apply. (For more on the exit point,
see section 16.3.7).
For detailed information regarding earned income see section 16.
Where the applicant or participant is found eligible for a monthly assistance of
between one cent and two dollars, the actual amount to be issued is two dollars.
Assistance is provided to enable EIA participants to provide the basic necessities for
themselves and members of their household. EIA is not responsible for applicants' debts,
whether acquired before the EIA application or during enrollment. EIA does not assume
responsibility for applicants' debts or provide funds to participants for this purpose.
The purpose of asking applicants to provide information regarding their debts is to
enable the intake worker to assess how to best meet applicants' financial needs. For
example, third party payments might be appropriate for applicants with a history of debts
to landlords or utility providers. (For more on determining method of payment, see section 6.4.14.
See section 15.6.
Under section 9(2) of the Regulation, applicants must make reasonable efforts to obtain the maximum amount of benefits available to them under other Acts or programs. participants eligible for CPP benefits are expected to apply to receive them at age 60.
A CRISP or 55 PLUS benefit received in the 30 days before application will be treated
as unearned income. (For more on unearned income, see section
15.2.2).
EIA participants are ineligible to receive benefits under either the Child Related
Income Support Program (CRISP) or 55 PLUS. The exception is EIA participants who are only
receiving Health Services benefits.
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