ARSD 67:12:05:59. Treatment of lump sum income

Nonrecurring earned or unearned lump sum income not otherwise excluded must be added together with all other monthly income received by the assistance unit and considered available for current use after application of the disregards in §§ 67:12:05:14, 67:12:05:18, and 67:12:05:21 and in subdivisions 67:12:05:38(2) and (3). If the total exceeds the need standard for the family, each member of the assistance unit is ineligible for aid to families with dependent children for the number of full months derived by dividing the total income by the need standard applicable to the family. Any amount remaining after this calculation is treated as income received in the first month following the period of ineligibility and is considered available for use at that time. Lump sum income includes insurance settlements, personal injury awards, and workers' compensation awards; retroactive payments old-age, survivors, and disability insurance and child support; and windfalls. A windfall is a sum that is not earned, does not occur regularly, and does not represent accumulated monthly income received in a single sum. Lump sum income earmarked and used for the purpose for which it was paid, or any portion of the lump sum designated for a specific purpose must be subtracted from the total lump sum income amount before determining the length of ineligibility. The department shall consider changes in circumstances requiring expenditure of resources or income in connection with medical and life-threatening situations as justification for shortening the period of ineligibility.