3.2.3 Income Availability

The FEP may only count income that is actually available for use by the applicant or participant.

Income is available when: the individual has a legal interest in it and has the legal ability to make it available for support and maintenance.

Income is considered unavailable when: the individual can reasonably document that it cannot be accessed for 31 or more days.

Unavailability may be documented through various methods including a letter from the source stating when the person will receive the income. Income is counted beginning in the first month it is received and thereafter. Income must not be counted until the amount and the payment date are known.

E XAMPLE: Kate has won a lawsuit filed on her behalf due to a car accident. Under the terms of the settlement, Kate will receive monthly payments for up to ten years. Kate has not yet received the first payment of the insurance settlement and she is not sure at this time when she will because the settlement was appealed by the insurance company. This income must not be counted until Kate knows when she will begin receiving the insurance settlement or when she actually begins to receive it, whichever is first.

A payment received must not be counted as an asset and income in the same month. (See 3.3.1 ) Current payments must be counted as income in the month received. Any amount remaining becomes an asset in the following months.

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3.2.3 Income Availability

Official source

The FEP may only count income that is actually available for use by the applicant or participant.

Income is available when: the individual has a legal interest in it and has the legal ability to make it available for support and maintenance.

Income is considered unavailable when: the individual can reasonably document that it cannot be accessed for 31 or more days.

Unavailability may be documented through various methods including a letter from the source stating when the person will receive the income. Income is counted beginning in the first month it is received and thereafter. Income must not be counted until the amount and the payment date are known.

E XAMPLE: Kate has won a lawsuit filed on her behalf due to a car accident. Under the terms of the settlement, Kate will receive monthly payments for up to ten years. Kate has not yet received the first payment of the insurance settlement and she is not sure at this time when she will because the settlement was appealed by the insurance company. This income must not be counted until Kate knows when she will begin receiving the insurance settlement or when she actually begins to receive it, whichever is first.

A payment received must not be counted as an asset and income in the same month. (See 3.3.1 ) Current payments must be counted as income in the month received. Any amount remaining becomes an asset in the following months.