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1238 (07/2026) Chapter 8: Examples • Chapter 8: Examples OSIPM Example 1: Mr. Jones completes an irrevocable assignment of a life insurance policy (FV = $15,000, CSV = $8,500) to fund a burial arrangement for goods and services that total $6,000. Since the cost of the arrangement is less than the FV of the life insurance policy the transfer of the policy is a potentially disqualifying transfer. To determine the amount of the disqualifying transfer subtract the cost of the contract from the CSV of the life insurance policy. In this example the disqualifying transfer amount is $8,500 (CSV of the life insurance policy) - $6,000 (the cost of the goods and services provided for in the contract) = $2,500. Example 2: Mr. Smith pays $7,000 for an irrevocable burial arrangement, but the contracted goods and services only total $4,000. The difference between the prepayment and the contract that it funds ($3,000) is potentially disqualifying. Note: When an individual purchases a burial arrangement the individual must be the owner of the policy, not a family member or other individual. Child support and cash medical support OSIPM Example 1: Sarah, a single mother of two applies for OSIPM and services. Sarah receives SSD and child support from her ex-husband. Per 461-110-0410(1)(a), the children are not in the financial group and therefore, the child support would not be considered income for the mother. Corporations and other business entities OSIPM Corporations Example 1: Bill and Ted started a landscaping business together and decided to incorporate. On the articles of incorporation, both are listed as officers and they are the only two stockholders. The business prospered, and eventually they were able to hire a site supervisor, a staff of 10, and an accountant. The business continued to grow and inevitably Bill and Ted asked themselves why they were breaking their backs when they could play golf and collect the profits. Because they no longer work for the corporation, their stock in the business (i.e. their ownership interest) is a countable resource under OAR 461-145-0520. The profits they receive are countable as unearned income. Example 2: Bernie owns stock in Wal-Mart, Apple, and Starbucks; he has an ownership interest in these corporations (albeit small) but doesn’t work for any of them. Bernie’s stock is a countable resource and any dividends or profits received are countable as unearned income. Example 3: Bill, the retired landscaper from example 1, is given one of the corporation-owned vehicles when his truck breaks down. The truck is considered unearned in-kind income (OAR 461-145-0280), but again, that rule specifies that items such as cars are evaluated according to the asset’s specific rule. If we evaluate the truck under the motor vehicle rule (OAR 461-145-0360), it is counted as a resource. OSIPM Other business entities