The value of all the following property shall be excluded for benefit calculation purposes, to a maximum TOTAL NET value of $266,824. The amount of this exclusion is increased for families composed of more than 2 dependent children by an amount of $2000 per additional child.
1. The NET value of a RESIDENCE or a working farm.
PRINCIPAL RESIDENCE
The value of a residence corresponds to the value of the HOUSE or the value of the lot on which it is built; it includes accessories that are permanently attached to it and outlying buildings.
The value that ADAPTED EQUIPMENT (elevator, access ramp, doorway widening) adds to a RESIDENCE is deducted from the value of the residence on the assessment roll, for the purpose of eligibility for last resort assistance, whether or not it is the owner of the residence who is disabled.
A house retains its status as a principal residence even if the recipient is TEMPORARILY ABSENT. The temporary nature of the absence is assessed on the basis of the beneficiary’s intent to return to the house. The factors to be assessed to determine his or her intent are: maintaining the house as his or her permanent address, leaving personal property or articles in the house, reasons for and duration of the absence, etc.
Examples:
- A person who is temporarily absent from his or her principal residence for the purposes of studying
- A person who is temporarily absent from his or her principal residence in winter because it is not fit for occupancy during that season
- A person who is temporarily absent from his or her residence for medical reasons.
The NEW RESIDENCE acquired by a recipient may also be exempted as such, even when the recipient did not complete his or her relocation, provided that the relocation is impending and takes place within one month from the date of acquisition of the residence.
WORKING FARM
The value of a FARM is the total value of the land, buildings, livestock and implements. The land can include lots that, while not adjacent to the primary operation activities, are nevertheless exploited by the farm. A priori, all lots that are sufficiently close allowing for the lots to be operated as a whole are deemed to be part of the farm.
A farm is deemed a working farm, even in the event of a TEMPORARY INTERRUPTION, when operations resume within 12 months.
- The value of a residence or a farm belonging to an independent adult owner who no longer resides in the residence or operates the farm since being taken in charge by a foster home or intermediate resource OR SHELTERED in a subsidized installation overseen by an institution that operates a rehabilitation centre, a residential and long-term care centre or a hospital centre for a period not exceeding two years from the day on which the adult was admitted or taken in. The exclusion period runs from the first day of placement or admission in a shelter.
- The value of a residence belonging to an adult or to a family who no longer resides there for HEALTH REASONS or because it is deemed UNFIT FOR HABITATION, for a period not exceeding two years from the moving date.
It could also be for PHYSICAL OR MENTAL HEALTH. For example, a person or a family may be compelled to leave the residence because his health or the health of a family member makes it impossible to live far away from a large centre.
This exclusion is granted if the SAFETY of a person or family is compromised, or on HUMANITARIAN GROUNDS. For example, a person must leave his residence after receiving multiple threats or being a victim of conjugal violence, or a person or family must leave their residence after events or circumstances make it impossible for them to continue living in the community (e.g. cases of incest, sexual abuse).
When an application for an exclusion is based on UNFIT HOUSING, the exclusion is granted when a public authority (habitation or police authority, civil protection service) attests that the reasons cited do in fact render the residence unfit to live in, or if the relevant authority deems that, after visiting the residence, it is no longer suitable for habitation, citing unfit housing (see 10.3.2 "Moving and heating system repairs” for the criteria governing unfit housing).
- The value of a residence belonging to an adult who no longer resides in the residence because of separation.
This exclusion can be applied for a period not exceeding two years. The exclusion period is calculated starting after the date on which family mediation or a judicial proceeding has been commenced, or a notary retained, until:
the date on which the court renders a decision regarding the right of ownership;
OR
the date on which the court confirms or approves the agreement between the parties;
OR
the date on which the dissolution of the civil union is signed before the notary.
This exemption applies to married or common law spouses, for whom the residence is part of the family patrimony that is subject to division following separation, divorce, the dissolution of a civil union or the annulment of a marriage.
The common law spouse can also benefit from the exemption in the following cases:
- he is a co-owner of the residence and has applied for partition;
- he is the owner of the residence and the former spouse, who is not the owner, has applied to the court to have his rights to this property recognized. This situation may arise when the spouses had signed a contract regarding this property in the case of the union’s dissolution.
In the case of MARRIED spouses, the process of family mediation must be undertaken with a professional who has been accredited by his profession to be a mediator (e.g. Quebec bar for lawyers), and the mediation must focus on, in whole or in part, the division of property. In the case of COMMON LAW spouses, mediation cannot address the division of property. The exclusion may only be granted in the previously mentioned conditions.
Existing recipients are eligible for the exemption starting in the month following the beginning of the mediation process or the legal proceedings, in the usual manner. However, when a person becomes a recipient during the month in which the mediation process or legal proceedings are initiated, the exemption applies to that month. The exemption is granted until the date of judgment or the homologation of the agreement, but cannot exceed the period of two years that begins following the month of the beginning of mediation or legal proceedings. The band council recognized the start date as the date of the beginning of the legal proceedings, the date of the contracting meeting with the recipient’s attorney or the date of the beginning of mediation.
There are two possible scenarios if no judgment is delivered after the two-year exemption period:
- the former spouses cannot agree on the sale of the residence.
This constitutes a legal impediment. When the impediment ceases, the assistance is recoverable, as per the provisions set forth in chapter 15 onward and section 3.2.7.
- the former spouses have agreed to sell the residence.
The property is therefore considered for the purpose of calculating benefits for the following month, in the usual manner.
Despite this exemption, the existence of a legal impediment to the alienation of property is taken into account when determining the total net value of exempted property that exceeds $266,824. During the period in which the client is entitled to the two-year exemption, the claim will be based only on the amounts which exceed this limit.
- The net value of property, other than liquid assets, used for the purpose of SELF-EMPLOYMENT or OPERATING A FARM.
The property targeted by this provision includes MACHINERY (e.g. trucks, tractors, boats, taxi cars) used for purposes of self-employment or operating a farm. This property can also include IMMOVABLES (lots and buildings) used for purposes of self-employment, as well as the inventory of merchandise.
- The principal from an indemnity paid in COMPENSATION for immovables, following an expropriation, a fire or other disaster, an act of war, an attack or an indictable offence, if used within two years of receipt to repair or replace the property or in the operation of an enterprise.
- The principal from an indemnity paid in compensation for movable property following a fire or other disaster, an act of war, an attack or an indictable offence, if used within 90 days of receipt.
- The principal from the SALE OF A RESIDENCE, if used to buy or build another residence within 6 MONTHS of the sale, and if the principal:
- is immediately DEPOSITED in a separate account or in another institution legally authorized to receive deposits, for instance in a cooperative financial institution or trust
- in the case of an immoveable, the sum is invested by a trustee as authorized under the Civil Code: government-issued savings bonds, company bonds, preferred stocks, and, in certain cases subject to very strict conditions, listed stocks.
At the END OF THE PRESCRIBED PERIOD for using the principal, any amount that has not been used for the purposes intended is considered a liquid asset that could influence the amount of assistance received the following month.
A SUM used for UNSANCTIONED ENDS, paragraphs 6 to 8, is considered a liquid asset for the entire month in which it was used. The recipient is considered to have this sum at his disposal on the last day of this month. However, the basic EXCLUSION is applicable to the sum used for unsanctioned ends (see section 3.3.10).