---
kind: "range"
citation: "20 C.F.R. §§ 416.1240–416.1242"
title: "20"
from: "416.1240"
to: "416.1242"
count: 2
url: "https://uscodex.org/cfr/20/416.1240..416.1242"
---

# §416.1240. Disposition of resources.

- (a) Where the resources of an individual (and spouse, if any) are determined to exceed the limitations prescribed in [§ 416.1205](/cfr/20/416.1205.md), such individual (and spouse, if any) shall not be eligible for payment except under the conditions provided in this section. Payment will be made to an individual (and spouse, if any) if the individual agrees in writing to:
  - (1) Dispose of, at current market value, the nonliquid resources (as defined in [§ 416.1201(c)](/cfr/20/416.1201.md?p=c)) in excess of the limitations prescribed in [§ 416.1205](/cfr/20/416.1205.md) within the time period specified in [§ 416.1242](/cfr/20/416.1242.md); and
  - (2) Repay any overpayments (as defined in [§ 416.1244](/cfr/20/416.1244.md)) with the proceeds of such disposition.
- (b) Payment made for the period during which the resources are being disposed of will be conditioned upon the disposition of those resources as prescribed in paragraphs [(a)(1)](#a-1) and [(a)(2)](#a-2) of this section. Any payments so made are (at the time of disposition) considered overpayments to the extent they would not have been paid had the disposition occurred at the beginning of the period for which such payments were made.
- (c) If an individual fails to dispose of the resources as prescribed in paragraphs [(a)(1)](#a-1) and [(a)(2)](#a-2) of this section, regardless of the efforts he or she makes to dispose of them, the resources will be counted at their current market value and the individual will be ineligible due to excess resources. We will use the original estimate of current market value unless the individual submits evidence establishing a lower value (e.g., an estimate from a disinterested knowledgeable source).

# §416.1242. Time limits for disposing of resources.

- (a) In order for payment conditioned on the disposition of nonliquid resources to be made, the individual must agree in writing to dispose of real property within 9 months and personal property within 3 months. The time period for disposal of property begins on the date we accept the individual's signed written agreement to dispose of the property. If we receive a signed agreement on or after the date we have determined that the individual meets the eligibility requirements described in [§ 416.202](/cfr/20/416.202.md) of this part, with the exception of the resource requirements described in this subpart, our acceptance of the written agreement will occur on the date the individual receives our written notice that the agreement is in effect. If we receive a signed agreement prior to the date we determine that all nonresource requirements are met, our acceptance of the written agreement will not occur until the date the individual receives our written notice that all nonresource requirements are met and that the agreement is in effect. When the written notice is mailed to the individual, we assume that the notice was received 5 days after the date shown on the notice unless the individual shows us that he or she did not receive it within the 5-day period.
- (b) The 3-month time period for disposition of personal property will be extended an additional 3 months where it is found that the individual had “good cause” for failing to dispose of the resources within the original time period. The rules on the valuation of real property not disposed of within 9 months are described in [§ 416.1245(b)](/cfr/20/416.1245.md?p=b).
- (c) An individual will be found to have “good cause” for failing to dispose of a resource if, despite reasonable and diligent effort on his part, he was prevented by circumstances beyond his control from disposing of the resource.
- (d) In determining whether the appropriate time limits discussed in paragraphs [(a)](#a) and [(b)](#b) of this section have elapsed, no month will be counted for which an individual's benefits have been suspended as described in [§ 416.1320](/cfr/20/416.1320.md), provided that the reason for the suspension is unrelated to the requirements in [§ 416.1245(b)](/cfr/20/416.1245.md?p=b) and that the individual's eligibility has not been terminated as defined in [§§ 416.1331 through 416.1335](/cfr/20/416.1331..416.1335.md).