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1. Death benefits are counted as income to the extent the total amount exceeds the expenses of the deceased person’s last illness and burial paid by the recipient of the benefit. 2. Death benefits that are not income are also not a resource for one calendar month following the month of receipt. If retained into the second month following receipt, they are countable resources.
Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).
Rule 7.45: Inheritances.
A. This type of income is defined as follows:
1. An inheritance is cash, a right or a noncash item(s) received as the result of someone’s death. An inheritance is a death benefit.
B. This type of income is treated as follows:
1. Until an item or right has a value (i.e., can be used to meet the heir’s need for food or shelter), it is neither income nor a resource.
2. The inheritance is income in the first month it has a value and can be used.
3. An inheritance is not income to a person if the inheritance is something that was considered that person’s resource (either as a member of an eligible couple or through deeming of resources) immediately before the death.
a) The proceeds of a life insurance policy were not a resource before the death.
Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).
Rule 7.46: Choctaw Tribal Bonus.
A. The Choctaw Tribal Bonus is issued as the result of gaming revenues which are distributed to individuals on a per capita basis.
B. For Medicaid eligibility purposes, the bonus is a recurring lump sum payment and is counted as income in the month of receipt.
Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).
Rule 7.47: Educational Assistance.
A. Educational assistance is provided in many forms. Treatment will vary depending on the nature and sometimes the use of the assistance.
B. Educational assistance may be earned or unearned and may be counted or excluded.