03.03.14 – Liquid assets squandered – Sufficient consideration

Fair consideration is assessed by:

 

  • taking into account previous lifestyle, current living expenses, etc. for each month following the squandering;

 

  • taking into account that an adult or family who has surplus liquid assets may use them to pay back loans, pay off legally incurred debts, acquire services, purchase household effects or pay for any other expenses, provided there are vouchers to prove them.

 

The recipient must provide VOUCHERS SHOWING that he or she obtained CONSIDERATION.  Every expense supported by written proof is accepted, even if the expense is already covered by the scale of needs.

 

However, in determining whether a person has squandered assets, there is no justification for requiring the person to have lived in accordance with the scales for assistance. In this case, despite the absence of corroborating documentation, expenses are deemed acceptable when they are equivalent to twice the scale used for people with a severely limited capacity for employment, or if ongoing expenses appear to be reasonable (e.g. food, transportation) in light of the context and the client’s standard of living prior to his application for assistance.