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TANF TANF TANF TANF TANF TANF TANF TANF SNAP SNAP SNAP SNAP SNAP SNAP SNAP SNAP Reverse Mortgages are home equity loans. Money from the Reverse Mortgage can be in the form of a lump sum, monthly advances, a line-of-credit or a combination of all three payment methods. Reverse Mortgage loans become due with interest either when the person permanently moves, sells their home, dies or reached the end of the pre-selected loan term. 744 LUMP SUM PAYMENTS (toc) Lump sum payments include, but are not limited to, retroactive benefit payments, RSDI, UIB, VA, etc., insurance settlements, awards or settlements received for personal injury, structured settlement annuity, inheritance, irregular or unpredictable wage bonuses, employment severance pay, retroactive pay increases, etc. (not all inclusive). Note: A lump sum amount received from the sale of real property is considered a resource, not income. Nonrecurring lump sum payments are any payment(s) received in a month, made from a source that is not likely to make additional lump sum payments to the household. Lump sum payments may be received in one or more individual checks but are considered a lump sum if all money received is a part of the whole payment due. See E&P MS A-766.3 for definition and evaluation of lump sum payments received from lottery or gambling winnings. If a lump sum is provided to assist with burial, legal, medical bills or replacement of damaged or lost possessions, disregard from the lump sum amounts earmarked and used for the purpose for which it was paid. To verify earmarked expenses, request a copy of the settlement agreement and verification of payment for earmarked expenses claimed to determine any budgetable amount. Count lump sum payments as unearned income in the month received if it is received or anticipated more often than once a year. Exempt lump sum payments as income if received once a year or less, unless specifically listed as income. Count it as a resource in the month received. Note: If a household is receiving a settlement in installments, such as a structured settlement annuity, determine if the payor would have paid the total in one payment. If so, budget the lump sum as if received in one payment, not installments. Example: • A settlement of $10,000 is awarded for a personal injury claim to be paid out at $500.00 per month for 20 months – exempt as income and budget the $10,000 lump sum as a resource in the month the first payment is received. • A settlement of monthly payments of $1,000 per month for the life of the claimant is awarded as a structured settlement annuity – budget $1,000 per month as unearned income. Exception: If any of the following situations occurs, a lump sum is counted as income in the month received: • The countable lump sum plus other countable adjusted gross monthly income is less than or equal to 100% needs standard for the family's size. INCOME Division of Social Services Eligibility and Payments Manual 26 Jun 26 MTL 09/26 Loans (non-educational) A-743