A lump sum is a payment that is not received in all 12 months of a year. For ABD cases it follows same policy regarding Long Term care cases in that the lump sum is counted in the month received. Also, any amount of the lump sum retained by the client in the month following receipt, is considered a resource.
- For example, client received $2,500 in a GoFundMe account set up for medical expenses. Client cashed out $1000 to pay medical bills.
- $2,500 is counted in month received as client has access to money in account.
Any amount left over in the GoFundMe (in this example $1,500) would be considered a resource in the following month.
There are however exceptions to this when considering RSDI and SSI lump sum payments. They are exempt as income.
Resource determination looks at the fact that the client has 9 months to spend down an RSDI or SSI lump sum. During those 9 months, it is an exempt resource. The resource needs to be addressed in the 9th month. Ask for verification of spend down. Anything remaining is counted as a resource.
Verification is needed to confirm that the SSI or RSDI lump sum payment has been spent down to under the applicable resource standard. A list showing what, when, and where the money was used is acceptable. Receipts can be requested if the list is questionable.
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