AUTHORITY
Assured Income for the Severely Handicapped Act, section 3.2
Assured Income for the Severely Handicapped General Regulation, sections 2.01(1)(d); Schedule 2, sections 2(2)(j), 2(2)(k), 2(2)(l) and 3

INTENT

To describe the two provisions for temporarily exempting an asset when determining eligibility for AISH and personal benefits.

12 MONTH EXEMPTION

The intent of this policy is to exempt certain lump-sum payments, as assets, for 12 months from the date the applicant, client or cohabiting partner receives the payment.  This exemption is meant to provide applicants, clients and cohabiting partners time to invest the payment into an exempt asset such as, a principal residence, trust and\or a Registered Disability Savings Plan (RDSP). 

The 12 month asset exemption only applies to money and does not apply to property such as houses and vehicles.

The payment must not be income as determined by AISH which means that the payment is not reportable under the Income Tax Act (Canada). Examples of eligible lump-sum payments include:

• Canada Child Benefits
• Compensation received from a province or territory if you were  a victim of a criminal act or motor vehicle accident;
• Gifts;
• GST credits;
• Income Tax Refunds;
• Inheritances;
• Lottery winnings; 
• Money received from a life insurance policy following someone’s death;
• Money from the sale of a principal residence; 
• Money from the sale of:
  • a vehicle that is not primarily used as a recreational vehicle; or
  • a vehicle adapted to accommodate the disability of an applicant, client, cohabiting partner or dependent child;
• Proceeds from an insurance settlement for:
  • a principal residence;
  • one vehicle; and/or
  • a vehicle adapted for the disability of an applicant, client, cohabiting partner or dependent child.

Note
The above is not an exhaustive list and there may be other payments that are not reportable under the Income Tax Act (Canada).  For payments not on the list, consultation with the Canada Revenue Agency is required to determine whether the payment is reportable as income.

When the payment is exempt as an asset for 12 months, this means that the asset is exempt from both the $100,000 non-exempt asset limit and the $5,000 asset limit for personal benefits.

At the end of the 12 month asset exemption, an overpayment may be assessed if the client or cohabiting partner does not invest the payment into an exempt asset. If an overpayment is assessed, it may be reviewed to determine whether it is appropriate to waive the overpayment based on the client’s unique circumstances.

Decisions regarding the 12 month exemption are appealable.

DIRECTOR EXEMPTION

The Director may exempt an asset temporarily to allow for a change in circumstances to be addressed when an applicant’s, client’s and/or cohabiting partner’s non-exempt assets exceed $100,000.  An asset may be exempted if it is disposed of within the time specified by the Director.  Client circumstances are reviewed on a case-by-case basis. 

When the asset is exempted by the Director, the asset is also exempted from the $5,000 asset limit for personal benefits.

The Director may consider using this provision when a client’s circumstances do not meet the eligibility criteria for the 12 month exemption described above.  One example which may be considered is when a client transitions from their home to a long-term care facility. In this case, the client’s house is no longer their principal residence and as a result becomes a non-exempt asset.  The Director may exempt the house from a determination of assets for a specified amount of time to allow the client time to sell their house or make other arrangements.

The Director’s decision is appealable.