These examples show how regular income and resources rules apply to IIM accounts.
Example 1 - Restricted Account
In March, Daniel $2,200 annual individual Indian trust income payment is deposited,
as required by BIA, into a restricted IIM account. The same month, the title II check
of $250 is also directly deposited into that account. Because Daniel's title II check
was available to Daniel in March (though Daniel opted to have it deposited into the
restricted account), regular income rules require treating the $250 as unearned income
for that month. If retained in the restricted account, the title II benefits are not
a resource.
Under P.L. 103-66, $2,000 of lease income would be excluded per SI 00830.850. However, per SI 01140.200, none of the lease income is income when deposited or a resource when retained in
the IIM account since Daniel does not have direct control of the funds.
In April, the BIA releases $200 to Daniel Per SI 00810.030 A., $200 is counted as unearned income for the month of April since the non-excludable
$200 of the $2,200 lease income was then available to Daniel Per SI 01130.700 B.2., the FO assumes that the non-excludable lease income funds are withdrawn first, leaving
as much of the excludable funds in the account as possible.
Example 2 - Unrestricted Account
In May, a $150 per capita payment from locally managed tribal funds is deposited into
Jeff's unrestricted IIM account. Development reveals that these funds were not held
in trust by the Secretary of the Interior and, therefore, are not excluded from income
and resources. The $150 counts as income to Jeff in May, per SI 00810.030 A., and counts as a resource, to the extent retained, in June per SI 01120.005 B.2. In June, Jeff withdraws the money from the account. The $150 is a conversion of a
resource in June per SI 00815.200, and is therefore not counted as income for that month.