(a) Essential persons continuously meet criteria of eligibility. In determining the resources of an individual (and spouse, if any) who meet the conditions specified in Sec. 416.1260 and whose payment standard is increased because such individual has in his home an essential person (as defined in Sec. 416.222), either the State plan resource limit and exclusions (as specified in Sec. 416.1260) applicable to cases in which the needs of an essential person are taken into account in determining the individual's needs, or the resource limit as specified in Sec. 416.1205 and exclusions as specified in Sec. 416.1210, whichever is most advantageous to the individual (and spouse), will be used.
(b) Essential person fails to meet criteria of eligibility. If for any month after December 1973 a person fails to meet the criteria for an essential person as specified in Sec. 416.222, in determining the resources of an individual (and spouse, if any) either the State plan resource limit and criteria as specified in Sec. 416.1260 applicable to the individual or individual and spouse, as the case may be, or the resource limit as specified in Sec. 416.1205 and exclusions as specified in Sec. 416.1210, whichever is most advantageous to the individual (and spouse), will be used. [39 FR 33797, Sept. 20, 1974, as amended at 51 FR 10616, Mar. 28, 1986]