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EVALUATION OF LUMP SUMS

ISSUE DATE: 06/2016

A lump sum is cash received on a non-recurring or irregular basis that cannot be reasonably anticipated. See 0017.15.30 (Lump Sum Income), 0015.27 (Assets - Income), 0022.15 (Counting Lump Sums as Income).

Do not count lump sum income as an asset during the month the client receives it. Count lump sum income retained into the next month as an asset, with the specific EXCEPTIONS listed below:

Non-recurring lump sum payments to the extent that it is earmarked and used for the purpose for which it is intended is not counted as an asset.

Payments made to people because of their status as victims of Nazi persecution. This includes reparation payments the Federal Republic of Germany makes to certain survivors of the Holocaust. They may be monthly payments or lump sum payments.

1-time payments made to certain World War II veterans or their surviving spouse under the Filipino Veterans Equity Compensation (FVEC) Fund. For information about the treatment of these payments as income, see 0017.06 (Excluded Income).

Federal payments that are required to be excluded under federal law. See 0015.30 (Assets - Payments Under Federal Law).


For information on counting lump sums as income, see 0017.15.30 (Lump Sum Income).


MFIP, DWP, GA:

A lump sum is income in the month of receipt. See 0017.15.30 (Lump Sum Income).

Treat the remaining amount of a lump sum as an asset in the 3rd month after the month of receipt.


SNAP:

A lump sum is NOT counted as earned/unearned income or as an asset.


MSA:

For SSI recipients, no action is required. SSA makes all asset determinations.

If an Interim Assistance Agreement, SSI Interim Assistance Authorization (DHS-1795) (PDF) and/or non-SSI Interim Assistance Agreement (DHS-1795A) (PDF), is on file, or if the client voluntarily repays the interim assistance, follow Interim Assistance Agreement procedures. See 0012.12.03 (Interim Assistance Agreements).

A lump sum is income in the month of receipt. See 0017.15.30 (Lump Sum Income).

Treat the remaining amount of a lump sum as an asset in the 3rd month after the month of receipt.

Exclude retroactive lump sum payments of RSDI or SSI as assets for 6 months after the client receives them.


GRH:

Follow MSA for aged, blind, or disabled clients. Follow general provisions for all other adults.

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