A Actions That Would Cause Income or Resources Not To Be Received

Policy

An action or failure to take action that results in the customer or customer’s spouse not receiving income or resources may be a transfer with uncompensated value.

Examples of actions that would cause income or resources not to be received include:

·         Waiving or refusing an inheritance;

·         Waiving or assigning pension income;

·         Refusing to take legal action to get a court ordered payment that is not being paid;

·         Refusing to accept or receive an injury settlement; and

·         Diverting insurance awards or court settlements into a trust or similar device to be held for the benefit of the person who won the settlement.

Actions or inactions of any of the following persons result in uncompensated transfers:

·         The customer;

·         The customer’s spouse;

·         A person, including a court or administrative body, with legal authority to act in place of or on behalf of the customer or the customer’s spouse; and

·         Any person, including a court or administrative body, acting at the direction of or upon the request of the customer or the customer’s spouse.

EXCEPTION:

If the person cannot afford to take the action required to get the income or resource, or if the cost of getting the income or resource is greater than what the income or resource is worth, there may be no uncompensated value.

Definitions

Proof

When there is action or failure to take action that causes income or resources not to be received by the customer or the customer’s spouse, the following proof is needed:

·         That the customer or customer’s spouse was or is entitled to receive the income or resource; and

·         The value of the resource or income at the time that it was refused.

If the customer claims that the cost to get the resource or income is greater than the its value, the customer will also need to provide proof of:

·         The cost of getting the resource or income; or

·         That the person cannot afford to take the action needed to get the resource or income.

Legal Authority