A transfer of income in the month it is received is considered a transfer of a resource
if the income would have been considered a resource in the following month. Although,
under the first of the month rule, receipt of income would not be counted toward the
beneficiary's SSI resource limit until the month after it is received, such income
meets the regulatory definition of a resource the month it is received. As defined
in SI 01110.100B, resources include cash or any other property that an individual owns and could convert
to cash to be used for his or her support and maintenance.
Example: Mr. Smith receives an inheritance of $5,000 in May, 2006. In the same month, he
transfers the $5,000 to his brother. The $5,000 inheritance is counted as unearned
income in May. It is also considered to be a transfer of a resource in May. Despite
the fact that the inheritance would not be counted as a resource unless retained until
June, we consider the transfer subject to the transfer of resource penalty because
it meets the definition of a resource in the month of receipt.