Page 14

Chapter: 1800 Income Program: MSSI, SFP 10 1840.0108.03 Joint Bank Accounts (MSSI, SFP) When an eligible individual is a joint account holder, a deposit to the account specifically designated for any other account holder is not income to the individual.

Interest payments to the account are divided equally among the account holders. For example, if there are two owners, 50 percent of the interest paid is owned by the individual. Interest earned on bank accounts is excluded as unearned income in eligibility determination. Interest is counted as unearned income when calculating patient responsibility. 1840.0109.01 Availability of Income for Institutional Care (MSSI) The following policy applies to ICP, MEDS-ICP, and Institutionalized Hospice.

The income owned solely by the community spouse is not considered when determining if the institutionalized individual's income is within program standards. Once eligibility has been determined, the community spouse's income is considered based on the following policy.

Income derived from jointly owned assets is considered available to whom it is paid unless the trust or non-trust instrument indicates otherwise. If the payment is made:

1. solely to the community spouse, the income is available only to the community spouse; 2. to both spouses, half of the income is considered available to each spouse; or 3. to the institutional spouse, the community spouse, and to others, income is considered available in proportion to each spouse's interest in the asset.

The institutionalized spouse may rebut the presumed ownership interest of non-trust assets. Trust assets are considered available according to the terms of the trust.

Income from assets included in the community spouse's asset allocation are considered available according to whom the income is paid until the asset is legally transferred to the community spouse. Once the asset is transferred to the community spouse, the income is not counted toward the institutional spouse. 1840.0109.02 Determining Ownership of Income (MSSI, SFP) The individual who has title to the proceeds of a payment or property is the individual who "owns" the income.

If the income is received by an individual's legal representative or guardian, the individual still owns the income.

When a legal representative receives the income, the eligibility specialist may verify ownership through the following documents the designation on the payment, check, award letter, or other document or the title to the property. 1840.0109.04 Availability of an Inheritance (MSSI, SFP) "Inheritance" is any person's rights to, or possession of, cash or property that are left to the individual at the person's death. An individual's inheritance becomes unearned income when it actually becomes available to the individual, but in no case later than when the estate is closed.

Usually the court issues an order specifying the distribution of an inheritance when closing out the estate. The individual's portion can be established by the court order.

If an inheritance is included as an asset as a result of deeming, and the individual later inherits the asset, the income from the inheritance is excluded at that time.