Inheritances

Inheritances. A. This type of income is defined as follows: 1. An inheritance is cash, a right or a noncash item(s) received as the result of someone’s death. An inheritance is a death benefit. B. This type of income is treated as follows: 1. Until an item or right has a value (i.e., can be used to meet the heir’s need for food or shelter), it is neither income nor a resource. 2. The inheritance is income in the first month it has a value and can be used. 3. An inheritance is not income to a person if the inheritance is something that was considered that person’s resource (either as a member of an eligible couple or through deeming of resources) immediately before the death. a) The proceeds of a life insurance policy were not a resource before the death.