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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 132 Chapter 4 Income

4.5.4.G Irregular Income Regardless of the source, irregular income is excluded because it cannot be anticipated. 4.5.4.H Lump-Sum Payments and Related Periods of Ineligibility The lump-sum payment policy applies to applicants, when the lump sum is received in the month of application. This policy also applies to clients when a lump sum is received during any month a case is active. Both include lump-sum payments received by a disqualified person(s) who would otherwise be required to be included in the AG. See Section 4.5.4.E.2 above. The DFA-RR-1 (Rights and Responsibilities) notifies all applicants, clients, and disqualified persons, who would otherwise be required to be included in the AG, of the lump-sum payment policy. The Worker must also advise the client of the lump-sum payment policy when the client notifies the Worker of receipt, or the possibility of receipt, of a lump-sum payment. Assets converted from one form to another are not counted as lump-sum payments. See Chapter 5. 4.5.4.H.1 Determining Countable Amount The total amount of the lump-sum payment is counted, except for the following: • Lump-sum payments that are earmarked and used for the purpose for which they are intended (e.g., monies for back medical bills resulting from injury, or funeral and burial costs) are deducted. In addition, lump-sum payments that are intended and used for replacement or repair of an asset (e.g., monies to replace a defective automobile) are deducted. • Any of the lump-sum funds, obligated and used for legal fees as a result of the efforts of the attorney to obtain the lump-sum payment, are deducted. Replacement of an Asset Example: A client's home is destroyed by fire. He receives an insurance settlement of $16,500. With $10,000 of this settlement, he purchases a mobile home. Only $6,500 is counted as a lump-sum payment.