These examples show how regular income and resources rules apply to IIM accounts.
Example 1 - Restricted Account
In March, Mr. Strong's $2,200 annual individual Indian trust income payment is deposited,
as required by BIA, into his restricted IIM account. The same month, his title II
check of $250 is also directly deposited into that account. Because Mr. Strong's title
II check was available to him in March (though he opted to have it deposited into
his 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 Mr. Strong does not have direct control of the funds.
In April, the BIA releases $200 to Mr. Strong. Per SI 00810.030
A., $200 is counted as unearned income for the month of April since the nonexcludable
$200 of the $2,200 lease income was then available to him. Per SI 01130.700 B.2., the FO assumes that the nonexcludable lease income funds are withdrawn first,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
Mr. Thornton'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 Mr. Thornton 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, Mr. Thornton withdraws the money from his 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.