[Federal Register Volume 62, Number 60 (Friday, March 28, 1997)]
[Notices]
[Pages 14959-14960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7831]
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SOCIAL SECURITY ADMINISTRATION
Social Security Ruling SSR 97-1p. Title XVI: Supplemental
Security Income--Income--When Inheritances Become Income
AGENCY: Social Security Administration.
ACTION: Notice of Social Security ruling.
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SUMMARY: In accordance with 20 CFR 422.406(b)(1), the Acting
Commissioner of Social Security gives notice of Social Security Ruling
SSR 97-1p. This Policy Interpretation Ruling clarifies the Social
Security Administration's longstanding policy that State law must be
taken into account in determining the point at which an inheritance
becomes income under Title XVI, Supplemental Security Income for the
Aged, Blind, and Disabled, of the Social Security Act. That is, the
earliest point at which an inheritance can become income under Title
XVI is the point at which the individual is free, under applicable
State inheritance laws, to spend his or her inheritance (if it is cash)
or to convert his or her inheritance to cash (if it is not cash).
EFFECTIVE DATE: March 28, 1997.
FOR FURTHER INFORMATION CONTACT: Joanne K. Castello, Division of
Regulations and Rulings, Social Security Administration, 6401 Security
Boulevard, Baltimore, MD 21235, (410) 965-1711.
SUPPLEMENTARY INFORMATION: Although we are not required to do so
pursuant to 5 U.S.C. 552(a)(1) and (a)(2), we are publishing this
Social Security Ruling in accordance with 20 CFR 422.406(b)(1).
Social Security Rulings make available to the public precedential
decisions relating to the Federal old-age, survivors, disability,
supplemental security income, and black lung benefits programs. Social
Security Rulings may be based on case decisions made at all
administrative levels of adjudication, Federal court decisions,
Commissioner's decisions, opinions of the Office of the General
Counsel, and other policy interpretations of the law and regulations.
Although Social Security Rulings do not have the force and effect
of the law or regulations, they are binding on all components of the
Social Security Administration, in accordance with 20 CFR
422.406(b)(1), and are to be relied upon as precedents in adjudicating
cases.
If this Social Security Ruling is later superseded, modified, or
rescinded, we will publish a notice in the Federal Register to that
effect.
(Catalog of Federal Domestic Assistance, Program 96.006 Supplemental
Security Income.)
[[Page 14960]]
Dated: March 21, 1997.
John J. Callahan,
Acting Commissioner of Social Security.
Policy Interpretation Ruling; Title XVI: Supplemental Security
Income--Income--When Inheritances Become Income
Purpose: To clarify the Social Security Administration's (SSA)
longstanding policy that State law must be taken into account in
determining the point at which an inheritance becomes income for
purposes of the Supplemental Security Income (SSI) program.
Citations (Authority): Section 1612(a)(2)(E) of the Social Security
Act; Regulations No. 16, Subpart K, sections 416.1102, 416.1121(g), and
416.1123(a).
Pertinent History: The point at which something becomes income
under the SSI program derives from the regulatory definition of income
at 20 CFR 416.1102. Income is something an individual receives and can
use to meet food, clothing, or shelter needs. An implicit requirement
of this definition is that, for property other than cash to be
considered income, the individual who receives it must have the legal
right, authority, and power to convert it to cash (by selling it, for
example). The point at which something becomes income is, necessarily,
the point at which it first meets this criterion.
The earliest point at which a cash inheritance can be used to meet
food, clothing, or shelter needs is the point at which State
inheritance laws permit the heir to spend it. The earliest point at
which inherited property other than cash can be used to meet food,
clothing, or shelter needs is the point at which State inheritance laws
permit the heir to convert the property (or his or her interest in it)
to cash.
In some States, an heir cannot dispose of an inheritance until the
estate is closed. When this is the case, the inheritance does not meet
the regulatory criteria to be considered income until the estate is
closed. In other States, an heir may receive a contingency interest in
real property at the time of the decedent's death. The heir can sell
this contingency interest immediately, even though perfect title to the
property cannot be conveyed until the estate is closed and the value of
the property may be reduced accordingly or be difficult to determine.
However, when the contingency interest can be valued, this interest
meets the regulatory criteria to be considered income at the time of
the decedent's death.
Since State law governs the point at which inherited property first
meets the regulatory criteria for being considered income, State law
must be taken into account in determining the point at which inherited
property becomes income under the SSI program. This includes cases in
which State law permits an heir to convert inherited property to cash
prior to distribution of the assets, since failure to consider such
property as income unless and until the assets are distributed would
not be consistent with regulations.
Policy Interpretation: The earliest point at which an inheritance
can become income under the SSI program is the point at which the
individual is free, under applicable State inheritance laws, to spend
the inheritance (if it is cash) or to convert the inheritance to cash
(if it is not cash).
Effective Date: This Ruling which merely clarifies SSA's
longstanding policy on the treatment of inheritances is effective on
March 28, 1997.
Cross-Reference: Program Operations Manual System, Part 5, Chapter
008, Subchapter 30, Section SI 00830.550.
[FR Doc. 97-7831 Filed 3-27-97; 8:45 am]
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