SI ATL00830.550 Inheritances (Whether Via A Will Or Intestate Laws)

See SI 00830.550

A. ESTABLISHING DATE OF RECEIPT

REAL PROPERTY: In all states in the Atlanta Region, real property vests immediately in the heirs (and is, therefore, considered received by the heirs) upon the death of the ancestor. This is a contingency interest in the property, which can be conveyed to another individual without the consent of the other heirs. The other individual receives only the heir's contingent interest in the property, an undivided portion of the whole. Although the perfect title cannot be conveyed to the other individual until the estate is probated, the property is considered to have been transferred to that individual for SSI resource purposes.

INHERITANCE OTHER THAN REAL PROPERTY: Count as income when it becomes available for use by the heir.

B. WHAT IS TO BE DATE OF RECEIPT

INCOME: Treat the inheritance as income in the month received. If the inheritance is home property, the value to charge is limited to the PMV. If non-home real property or an inheritance other than real property, use the CMV.

Even though the heir has the right to convey the property before the estate is finally probated, such transactions are voidable. This greatly affects the value of the resource and should be taken into account in determining the CMV.

When securing the CMV, be sure to specify that you want the value of an undivided share. The CMV cannot be derived by dividing the normal CMV of the property by the number of heirs.

RESOURCE: If retained, use regular resource rules the first of the next month following receipt.

NONCASH ITEMS OTHER THAN AN ITEM OF FOOD, CLOTHING, OR SHELTER: See SI 00815.550 for treatment of an inheritance of this type.

LAST ILLNESS AND BURIAL: When the inheritance will be used to settle the last illness and burial expenses of the deceased, see SI 00830.545.

C. EXAMPLES

Tom's mother dies intestate on 8/26/91 leaving her home to Tom and his sister, the only heirs. Neither lives on the property. The claims representative determines Tom's undivided one-half interest in the property is valued at $750. This amount is charged as income in 8/91 and becomes subject to regular resource counting rules in 9/91.

Same example as above except Tom's mother left the property to her two children in her will. The will could not be probated for six months. The $750 value would still be charged as income in 8/91 and become a resource in 9/91.

If Tom had been living on the property with his mother, the value of the inheritance charged in 8/91 would be subject to the PMV rules. It would become an excluded resource in 9/91 if Tom continues to live in the home.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500830550ATL
SI ATL00830.550 - Inheritances (Whether Via A Will Or Intestate Laws) - 04/16/2002
Batch run: 01/27/2009
Rev:04/16/2002