B Constructively Received Income

 

 

Revised 06/14/2018

 

Policy

How constructively received income is counted depends on whether:

·         The assignment of income to another person is revocable or irrevocable; and

·         If the income is assigned on a periodic or permanent basis:

 

If the income is…

Then…

Revocably assigned

Income is counted in each month it would have normally been received.

Example – Revocably Assigned Income

Irrevocably and permanently assigned (all future payments are assigned)

Irrevocably assigned income is not counted.

NOTE          For ALTCS, the assignment is evaluated as a transfer (see Chapter 900).

Example – Irrevocably and Permanently Assigned Income

Irrevocably assigned on a periodic basis (not all future payments are assigned)

For ALTCS:

Count the income in each month it would have normally been received is counted (constructively received).

Example – Irrevocably and Periodically Assigned Income

For all other programs the income for months it is irrevocably assigned is not counted.

 

Definitions

Term

Definition

Constructively Received Income

Income that a person is entitled to or has unrestricted control of before refusing or assigning the income to someone else.

Irrevocable Assignment

The person cannot legally take back the assigned income or taking back possession requires action by a third party who is not under the person’s control.

Revocable Assignment

The person has the right to get back if he or she chooses.

 

Proof

Proof of the assignment includes legal documents, contracts and agreements listing the length and terms of the assignment.

 

Legal Authority

This requirement applies to the following programs:

Program

Legal Authorities

ALTCS

SSI-MAO

MSP

FTW

42 USC 1382a(a) and (b)

20 CFR 416.1102, 1110, 1111, and 1120

Caretaker Relative

Pregnant Woman

Child

Adult

KidsCare

42 CFR 435.603