NOTE: This item also applies to calculation of the residual value of liquid assets disposed of or squandered.
This calculation is NOT made if MORE THAN TWO YEARS have passed since the waiver, disposition or squandering. The residual value is calculated as follows:
- We determine the value of the right, property or liquid asset waived, disposed of or squandered is determined. To evaluate the disposition of immovable property, the value entered on the assessment roll is the easiest indicator to use. However, if the market value is less than the value entered on the municipal assessment roll, it is the one that should be used, especially when it was arrived at by property assessment specialists.
It is the value on the date of the waiver, disposition or commencement of squandering, taking into account the regulatory provisions for each type of resource.
We determine the fair consideration received is determined and is subtracted from the value of the right, property or liquid asset that was waived, disposed of or squandered.
For purposes of assessing fair consideration, lifestyle, current living expenses and other similar factors must be taken into account.
- To obtain the value disposed of without consideration:
We subtract the amount assessed as fair consideration is subtracted from the value of the property or liquid asset that was waived, disposed of or squandered.
- Of the value thus obtained of the property disposed of with inadequate consideration, an amount of $1,500 will be subtracted for each month elapsed since the date of the waiving of rights or the disposal or squandering of property. An amount of $1,500 will also be applied to the month in which the liquid assets were squandered for the purpose of calculating the benefits for the following month.
To determine the amount set by the Framework Policy:
- use the table in effect when the assistance is being evaluated or when the administration should have known that assets were waived, disposed of or squandered.
- This calculation can be RETROACTIVE for a maximum of 24 months (i.e. the amount in the table determined at the time of assessment is applicable as of the date of the disposal or squandering of property or liquid assets).
During this period, there are months of eligibility and ineligibility, as follows:
- Month of ineligibility:
- Any month for which no benefits are granted or should be granted because the claimant does not meet the eligibility criteria for that month (see point A in the table).
- Month of eligibility:
- Any month for which benefits are granted (see point B in the table).
- Exception:
- The month during which a new application is filed is considered a month of ineligibility even if the claimant meets the eligibility criteria for that month.
A) for months of INELIGIBILITY for assistance, use the corresponding amount in the table below:
Depending on the number of family members each month beginning with the disposal, and not the number during the month the application is made;
|
Family members |
Amounts |
|||
|
Adults |
Dependent children* |
Effective 01-01-2012(3) |
Effective 01-01-2013(3) |
Effective 01-01-2014(3) |
|
1 |
0 |
887 $ |
887 $ |
887 $ |
|
1 |
1 |
1 268 $ |
1 268 $ |
1 268 $ |
|
1 |
2 |
(1)1 502 $ |
(1)1 502 $ |
(1)1 502 $ |
|
2 |
0 |
1 319 $ |
1 319 $ |
1 319 $ |
|
2 |
1 |
1 573 $ |
1 573 $ |
1 573 $ |
|
2 |
2 |
(1) 1 807 $ |
(1)1 807 $ |
(1)1 807 $ |
|
|
|
(2)887 $ |
(2)887 $ |
(2)887 $ |
|
|
|
887 $ |
887 $ |
887 $ |
1. These amounts are increased for the third and each subsequent dependent child :
January 2012 = $ 243
January 2013 = $ 249
January 2014 = $ 251
2. These amounts are increased for the third and each subsequent dependent child :
January 2012 : 1st child = $ 264; Each subsequent = $ 243
January 2013 : 1st child = $ 271; Each subsequent = $ 249
January 2014 : 1st child = $ 274; Each subsequent = $ 251
3. The basic amounts were not indexed
* An amount is added for each dependent child receiving the supplement for handicapped children paid by La Régie des rentes du Québec (RRQ):
January 2012 : $ 179
January 2013 : $ 184
January 2014 : $ 185
A. For the months of ELIGIBILITY, the total of the following sums:
- benefits granted to the adult or adults (basic benefits + benefits for limited capacity for employment + QST adjustment). When the recipient has dependent children, the following amounts are added:
|
Family composition |
Amounts |
|||
|
Adults |
Dependent children* |
Starting on 01-01-05 |
Starting on 01-01-06 |
Starting on 01-01-07 |
|
1 |
1 |
$350 |
$359 |
$366 |
|
1 |
2 |
(1) $566 |
(2) $580 |
(3) $591 |
|
2 |
1 |
$233 |
$239 |
$244 |
|
2 |
2 |
(1) $449 |
(2) $460 |
(3) $469 |
1. These amounts are increased by $216 for the third dependent child and each additional child.
2. These amounts are increased by $221 for the third dependent child and each additional child.
3. These amounts are increased by $225 for the third dependent child and each additional child.
The amounts are also increased by $165 for each dependent child receiving a supplement for handicapped children from the RRQ.
NOTE: No distinctions are made in the ages of dependent handicapped children. A sum of $174 is added to the monthly benefits for dependent handicapped children of full age. These families therefore receive additional benefits temporarily.
When a person disposes of or squanders property or liquid assets at different times, the rate of amortization is calculated using the following rules:
- The 24-month period of amortization is processed in an distinct manner for property and liquid assets;
- When the periods of amortization for property overlap, the residual value of the first piece of property is added to the residual value of the second to obtain the total value of the disposed property;
- An amount of $1,500 is subtracted from the total value of disposed property;
- When the 24-month period elapses for the first piece of property, the residual value of this property is subtracted from the total value of disposed property;
- When both the property has been disposed of with inadequate consideration and the liquid assets have been squandered, the calculation of the property and of the liquid assets is calculated separately. An amount of $1,500 is subtracted from the value of the disposed property and another amount of $1,500 is subtracted from the squandered liquid asset;
- A single amortization amount of $1,500 will be used to calculate benefits for the month of application and subsequent month. The residual value to consider for the purpose of calculating the benefit is therefore the same for these two months.
EXAMPLE 1
- 1st piece of property disposed of on November 5, 2007
- value disposed of with inadequate consideration: $40,000
- 2nd piece of property disposed of on January 10, 2008
- value disposed of with inadequate consideration: $20,000
|
November 2007 for December 2007: |
$40,000 - $1,500 = $38,500 |
|
December 2007 for January 2008: |
$38,500 - $1,500 = $37,000 |
|
January 2008 for February 2008: |
$37,000 + $20,000 = $57,000 |
|
$57,000 - $1,500 = $55,500 |
|
|
February 2008 for March 2008: |
$55,500 - $1,500 = $54,000 |
|
[...] |
|
|
In November 2009, the 24-month period for the first piece of property elapses. The residual value of this property is $4,000 ($40,000 - $36,000 [1,500 X 24]). |
|
|
November 2009 for December 2009: |
$24,000 - $4,000 = $20,000 |
|
$20,000 - $1,500 = $18,500 |
|
|
In November 2009, the residual value of the first piece of property ($4,000) must be subtracted from the total value of disposed property. |
|
EXAMPLE 2
- 1st piece of property disposed of on November 5, 2007
- value disposed of with inadequate consideration: $10,000
- 2nd piece of property disposed of on January 10, 2008
- value disposed of with inadequate consideration: $40,000
|
November 2007 for December 2007: |
$10,000 - $1,500 = $8,500 |
|
December 2007 for January 2008: |
$8,500 - $1,500 = $7,000 |
|
January 2008 for February 2008: |
$7,000 + $40,000 = $47,000 |
|
$47,000 - $1,500 = $45,500 |
|
|
February 2008 for March 2008: |
$45,500 - $1,500 = $44,000 |
|
[...] |
|
|
In November 2009, the 24-month period for the first piece of property elapses. The residual value of this property is $0 ($10,000 - $36,000 [1,500 X 24]). Note: The amount of $1,500 is subtracted from the total value of disposed property. However, since the value of the first piece of property was amortized in a little over 6 months, the usual calculations are made for the other disposed property. |
|
|
November 2009 for December 2009: |
$11,000 - $0 = $11,000 |
|
$11,000 - $1,500 = $9,500 |
|
|
Because there is no longer any residual value for the first piece of property in November, the total value of disposed property remains the same. |
|
EXAMPLE 3
- On November 5, 2007, the recipient disposes of his $100,000 residence with inadequate consideration for the sum of $50,000.
- On January 15, 2008, the recipient gives $25,000 to his son.
- Value of the property disposed of with inadequate consideration: $50,000
- Value of the squandered liquid assets: $25,000
|
November 2007 for December 2007: |
|
|
Value of disposed property: |
$50,000 - $1,500 = $48,500 |
|
December 2007 for January 2008 |
|
|
Residual value of disposed property: |
$48,500 - $1,500 = $47,000 |
|
January 2008 for February 2008 |
|
|
Residual value of disposed property: |
$47,000 - $1,500 = $45,500 |
|
Value of squandered liquid asset : |
$25,000 - $1,500 = $23,500 |
|
February 2008 for March 2008 |
|
|
Residual value of disposed property: |
$45,500 - $1,500 = $43,000 |
|
Residual value of squandered liquid asset: |
$23,500 - $1,500 = $22,000 |
EXAMPLE 4
NEW APPLICATION
In October 2007, an independent adult loses $20,000 at the casino. He has a monthly income of $1,000 from employment insurance. He files an application for income security in January 2008, in which he declares having spent $2,000 per month for current expenses. The adult has acted “with the intention” of making himself eligible for last resort financial assistance.
The value of the consideration must be established. The sums squandered at the casino cannot be considered as current expenses since they were not used to that end.
- Liquid asset squandered with inadequate consideration: $20,000
The residual value is calculated as follows:
|
October 2007 for November 2007: |
$20,000 - $1,500 = $18,500 |
|
November 2007 for December 2007: |
$18,500 - $1,500 = $17,000 |
|
December 2007 for January 2008: |
$17,000 - $1,500 = $15,500 |
|
January 2008 for January 2008 MA: |
$15,500 - $1,500 = $14,000 |
|
January 2008 for February 2008: |
$14,000 - $0 = $14,000 |
CLAIM
The agent must subtract from the value disposed of with inadequate consideration or squandered an amount of $1,500 for each month since the date of the waiving of rights or the disposal or squandering of property or liquid assets.