Revision 09-4; Effective December 1, 2009

Spousal impoverishment policy does not change the determination of what constitutes income or the methodology and standards for determining and evaluating income. See Chapter E, General Income. For spousal impoverishment, do not consider Section E-7000, Deeming Income, or Section E-8000, Support and Maintenance.

 

J-2110 Income Eligibility Test for the Institutional Spouse

Revision 09-4; Effective December 1, 2009

For the income eligibility test, separate treatment of income is required. During any month in which an institutionalized spouse is in an institutional setting, no income of the community spouse is used to determine the eligibility of the institutionalized spouse. When totaling countable income for the institutional spouse, consider the following.

If payment of income is made:

  • solely in the name of the institutionalized spouse or the community spouse, the income shall be considered available only to that respective spouse;
  • in the names of the institutionalized spouse and the community spouse, one-half of the income shall be considered available to each of them; and
  • in the names of the institutionalized spouse or the community spouse, or both, and to another person or persons, the income shall be considered available to each spouse in proportion to the spouse’s interest (or, if payment is made with respect to both spouses and no such interest is specified, one-half of the joint interest shall be considered available to each spouse).

An institutionalized spouse can rebut the treatment of the income based on the assumed ownership interest by establishing a preponderance of evidence that the ownership interests in income are different.

 

J-2111 Treatment of Interest from a Joint Account

Revision 09-4; Effective December 1, 2009

For treatment of jointly owned accounts with liquid assets such as a joint bank account, follow Appendix XXV, Accessibility to Income and Resources in Joint Bank Accounts, in determining how to treat the interest. Also refer to the policy for treatment of interest in the following items:

 

J-2112 Treatment of Income from a Trust

Revision 09-4; Effective December 1, 2009

If income from a trust is countable, the income is considered available to each spouse as provided in the trust. If the trust does not specifically address how the income is to be distributed and payment of income is made:

  • solely to the institutionalized spouse or the community spouse, the income shall be considered available only to that respective spouse;
  • to both the institutionalized spouse and the community spouse, one-half of the income shall be considered available to each of them; and
  • to the institutionalized spouse or the community spouse, or both, and to another person or persons, the income shall be considered available to each spouse in proportion to the spouse’s interest (or, if payment is made with respect to both spouses and no such interest is specified, one-half of the joint interest shall be considered available to each spouse).

 

J-2113 Other Treatment of Income

Revision 09-4; Effective December 1, 2009

When income is received, but there is no instrument establishing ownership, one-half of the income shall be considered to be available to the institutionalized spouse and one-half to the community spouse.

An institutionalized spouse can rebut the treatment of the income based on the assumed ownership interest by establishing a preponderance of evidence that the ownership interests in income are different.