Assistance is granted on the basis of the deficit that exists between a person’s needs and resources, on condition that the value of the person’s liquid assets does not exceed a certain limit set by the Framework Policy.
Under the Act and the Framework Policy, adults must not have, in the TWO YEARS PRECEDING an application for assistance or the payment of benefits, acted so as to make themselves eligible for benefits by:
- giving up liquid assets, that is, having disposed of them without obtaining fair consideration that would enable them to:
- provide for their needs;
- acquire other property or liquid assets;
- acquire services.
- squandering liquid assets, that is, wasting or thoughtlessly spending them. This is the case, for instance, of a person who spends his or her money gambling.*
AND having done so EXPRESSLY TO BECOME ELIGIBLE for a last resort financial assistance program or to receive benefits in excess to that which he would have normally been entitled.
The burden of proving waiver or disposition without consideration lies on the applicant or recipient, who must show that he or she disposed of his or her liquid assets for a fair consideration and did not act so to become eligible to assistance or greater benefits, regardless of his or her intention.
Adults and families are free to dispose of their liquid assets as they wish provided that the CONSIDERATION obtained in return is EQUIVALENT to what they give up. When an adult gives up liquid assets without sufficient consideration or that he or she squandered these assets, the value of the liquid asset disposed of is considered to determine the benefits. Assistance may thus be refused, reduced or cancelled.
The residual value of liquid assets disposed of or squandered is calculated in like manner as property waived by applying the basic exclusions.
RENT PAID IN ADVANCE
A tenant may, on his or her own, pay in advance more than one month of rent. The landlord cannot however request this from his or her tenant. Therefore:
- Where the tenant paid, on his or her own, more than one month of rent in advance, we consider that he or she squandered this sum. It will therefore be necessary to determine whether the person acted as such so as to become eligible to assistance.
However, if this is the case, in the calculation of the squandered sum, we will have to consider the fact that each month the rent is due, that the beneficiary receives fair consideration for this sum thus reducing the squandered sum of an amount equivalent to the rent.
- Where the tenant paid, at the request of the landlord, more than one month of rent in advance, we consider that the sum of money thus disposed of, represents liquid assets for the tenant since he or she may recover these payments.
We therefore request the recipient or applicant to give notice to his or her landlord to reimburse these amounts. As soon as this action is taken, we consider that he or she is expecting the realization of a right and we cease to consider this liquid asset.
Where the landlord does not respond to this formal notice, the tenant must file an action with the Régie du logement, only if the undue payments represent more than six months of rent. Otherwise, the officer terminates the right to be realized with an “08" type of regulation.