Code of Federal Regulations (alpha)

CFR /  Title 38  /  Part 3  /  Sec. 3.261 Character of income; exclusions and estates.

The following factors will be considered in determining whether a claimant meets the requirements of Sec. Sec. 3.250, 3.251 and 3.252 with reference to dependency, income limitations and corpus of estate:

(a) Income. --------------------------------------------------------------------------------------------------------------------------------------------------------

Dependency and Pension; old-law Pension; section 306

Income Dependency (parents) indemnity compensation (veterans, surviving (veterans, surviving See--

(1) Total income from employment, Included.............. Included.............. Included............. Included............. Sec. 3.262(a).

business, investments, or rents.(2) Income of spouse............... ......do.............. ......do.............. Excluded............. ......do............. Sec. 3.262(b).(3) Earnings of members of family ......do.............. Excluded.............. ......do............. Excluded............. Sec. 3.250(b)(2).

under legal age. Sec. 3.252(e)(3).(4) Earned income of child-claimant ...................... ...................... Included............. ......do.............(5) Gifts, including contributions

from adult members of family:

Property......................... ......do.............. Included.............. ......do............. ......do............. Sec. 3.262(k).

Money............................ ......do.............. ......do.............. ......do............. Included.............(6) Value of maintenance by Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(c).

relative, friend, or organization.(7) Rental value of property owned ......do.............. ......do.............. ......do............. ......do.............

by and resided in by claimant.(8) Charitable donations........... ......do.............. ......do.............. Included............. ......do............. Sec. 3.262(d).(9) Family allowance authorized by Included.............. Included.............. ......do............. Included.............

service personnel.

(10) Reasonable value of allowances ......do.............. ......do.............. ......do............. Included except as

to person in service in addition earned income of

to base pay. child-claimant.(11) Mustering-out pay............. Excluded.............. ......do.............. Excluded............. ......do.............(12) Six-months' death gratuity.... ......do.............. Excluded.............. ......do............. Excluded.............(13) Bonus or similar cash gratuity Excluded.............. Excluded.............. Excluded............. Excluded.............

paid by any State based on service

in Armed Forces of United States.(14) Retired Serviceman's Family

Protection Plan; Survivor Benefit

Plan (10 U.S.C. ch. 73):

Retired Serviceman's Family

Protection Plan (Subch. I):

Annuities...................... ......do.............. ......do.............. ......do............. ......do.............

Refund (10 U.S.C. 1446)........ Included.............. Included.............. Included............. Included.............

Survivor Benefit Plan (Subch. II) ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(e).

(Pub. L. 92-425; 86 Stat. 706).Annuity under Sec. 653, Pub. L. Included.............. Included.............. Excluded............. Excluded............. Sec. 3.262(r)

100-456.(15) Retirement pay received direct Included.............. Included.............. Included............. Included............. Sec. 3.262(e).

from service department. ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(h).(16) Retirement benefits; general.. ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(e).(17) Social security benefits:

Old age and survivors', and Included.............. Included.............. Included............. Included............. Sec. 3.262(f).

disability insurance.

Charitable programs............ Excluded.............. Excluded.............. ......do............. Excluded.............

Lump-sum death payments........ Included.............. ......do.............. ......do............. ......do.............

Supplemental security income... Excluded.............. Excluded.............. ......do............. ......do.............(18) Railroad Retirement benefits.. ......do.............. Included.............. Disability pension-- Included............. Sec. 3.262(g).

Excluded Death

pension--Included.(19) Retirement pay waived under Excluded.............. Excluded.............. Excluded............. ......do............. Sec. 3.262(h).

Federal statute.(20) Department of Veterans Affairs

payments:

Pension.......................... Excluded.............. Excluded.............. Excluded............. Excluded.............

Compensation and dependency and ......do.............. ......do.............. ......do............. ......do.............

indemnity compensation.

World War I adjusted compensation ......do.............. Included.............. ......do............. Included.............

U.S. Government life insurance or Excluded.............. Excluded.............. Excluded............. Excluded.............

national service life insurance

for disability or death,

maturity of endowment policies,

and dividends, including special

and termination dividends.

Servicemembers' group life ......do.............. ......do.............. ......do............. ......do.............

insurance.

Veterans' group life insurance... ......do.............. ......do.............. ......do............. ......do.............

Servicemembers' indemnity........ ......do.............. ......do.............. ......do............. ......do.............

Subsistence allowance (38 U.S.C. Included.............. Included.............. Included............. Included.............

ch. 31).

Veterans educational assistance ......do.............. ......do.............. ......do............. ......do.............

in excess of amounts expended

for training (38 U.S.C. ch. 34).

Educational assistance (38 U.S.C. ...................... ...................... Excluded............. Excluded.............

ch. 35).

Special allowance under 38 U.S.C. Excluded.............. Included.............. ......do............. Included.............

1312(a).

Statutory burial allowance....... ......do.............. Excluded.............. ......do............. Excluded.............

Accrued.......................... ......do.............. Included, except ......do............. Included, except

accrued as accrued as

reimbursement. reimbursement.(21) Compensation (civilian) for Included.............. Included.............. Included............. Included............. Sec. 3.262(i).

injury or death.

(22) Contributions by a public or

private employer to a:

Public or private health or Excluded.............. Excluded.............. Excluded............. Excluded.............

hospitalization plan for an

active or retired employee.

Retired employee as reimbursement Included.............. Included.............. Excluded............. Excluded.............

for premiums for supplementary

medical insurance benefits under

the Social Security Program

(Pub. L. 91-588; 84 Stat. 1580).(23) Overtime pay; Government Included.............. Included.............. Disability pension-- Included.............

employees. Excluded. Death

pension--Included.(24) Commercial life insurance; Included (as received) Included (as received) Included (special Included (as Sec. 3.262(j).

disability, accident, or health provision). received).

insurance, less payments of

medical or hospital expenses

resulting from the accident or

disease for which payments are

made.(25) Commercial annuities or ......do.............. Included (special ......do............. Included (special Sec. 3.262(j).

endowments. provision). provision).(26) Dividends from commercial Excluded.............. Excluded.............. Excluded............. Excluded.............

insurance.(27) Insurance under Merchant Included.............. Included.............. Included............. Included.............

Marine Act of 1936, as amended.(28) Reimbursement for casualty Included.............. Excluded.............. Included............. Included............. Sec. 3.262(t)

loss (Pub. L. 100-687).Other fire Insurance............... Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(t)(29) Bequests, devises and

inheritances:

Property......................... Included.............. Excluded.............. Included............. ......do............. Sec. 3.262(k).

Money............................ ......do.............. Included.............. ......do............. Included.............

Joint bank accounts.............. ......do.............. ......do.............. ......do............. Excluded............. Sec. 3.262(k)(1).(30) Profit from sale of property.. Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(k).(31) Jury duty or obligatory civic ......do.............. ......do.............. ......do............. ......do.............

duties.(32) Relocation payments (Pub. L. ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(c).

90-448; Pub. L. 90-495).(33) The following programs

administered by the ACTION Agency:

Foster Grandparent Program and ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(q)(1).

Older Americans Community

Service Programs payments (Pub.

L. 93-29; 87 Stat. 55).

Volunteers in Service to America ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(q)(2).

(VISTA), University Year for

ACTION (UYA), Program for Local

Services (PLS), ACTION

Cooperative Volunteers (ACV),

Foster Grandparent Program

(FGP), and Older American

Community Service Programs,

Retired Senior Volunteer Program

(RSVP), Senior Companion Program

(Pub. L. 93-113; 87 Stat. 394).(34) The Service Corps of Retired ......do.............. ......do.............. ......do............. ......do............. Sec. 3.262(q)(2).

Executives (SCORE) and Active

Corps of Executives (ACE)

administered by the Small Business

Administration. (Pub. L. 93-113;

87 Stat. 394).(35) Agent Orange settlement Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(s)

payments (Pub. L. 101-201).(36) Restitution to individuals of Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(u)

Japanese ancestry (Pub. L. 100-

383).(37) Income received by American Excluded.............. Excluded.............. Excluded............. Excluded............. 3.262(v)

Indian beneficiaries from Trust or

Restricted lands (Pub. L. 103-66).(38) Income received under Section Excluded.............. Excluded.............. Included............. Included............. 3.262(w)

6 of the Radiation Exposure

Compensation Act (Pub. L. 101-426).

(39) Cash, stock, land or other Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(x)

interests received from a Native

Corporation under the Alaska

Native Claims Settlement Act (43

U.S.C. 1601 et seq.).(40) Monetary allowance under 38 Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262(y)

U.S.C. chapter 18 for certain

individuals who are children of

Vietnam veterans or children of

veterans with covered service in

Korea (38 U.S.C. 1833(c)).(41) Income received under the Excluded \1\.......... Excluded \1\.......... Excluded \1\......... Excluded \1\......... Sec. 3.262(z)

Victims of Crime Act of 1984 (42

U.S.C. 10601-10605)..(42) Income received under the Excluded.............. Excluded.............. Excluded............. Excluded............. Sec. 3.262 (aa)

Medicare prescription drug

discount card and transitional

assistance program (42 U.S.C.

1395w-141(g)(6)).--------------------------------------------------------------------------------------------------------------------------------------------------------\1\ The compensation received through a crime victim compensation program will be excluded from income computations unless the total amount of

assistance received from all federally funded programs is sufficient to fully compensate the claimant for losses suffered as a result of the crime.

(b) Deduction of amounts paid by claimant. --------------------------------------------------------------------------------------------------------------------------------------------------------

Pension; old-law Pension; section 306

Dependency and (veterans, surviving (veterans, surviving

Deduction Dependency (parents) indemnity compensation spouses, and spouses, and See

(1) Unusual medical expenses....... Not authorized........ Authorized............ Not authorized....... Authorized........... Sec. Sec.

3.262(b)(1) and (1).(2) Veteran: just debts, expenses Not authorized........ Authorized, except Not authorized....... Authorized........... Sec. Sec. 3.262(m)

of last illness and burial. debts. and (o).(3) Veteran's spouse or child: Not authorized........ Not authorized........ Not authorized....... Authorized........... Sec. 3.262(n).

expenses of last illness and

burial.(4) Parent's spouse: just debts; Not authorized........ Authorized............ ..................... ..................... Sec. 3.262(o).

expenses of last illness and

burial.(5) Prepayment on real property Not authorized........ Not authorized........ Not authorized....... Authorized........... Sec. Sec.

mortgages after death of spouse 3.262(k)(6).

(Pub. L. 91-588).--------------------------------------------------------------------------------------------------------------------------------------------------------

(c) Corpus of estate. --------------------------------------------------------------------------------------------------------------------------------------------------------

Pension; section 306

Dependency and Pension; old-law (veterans, surviving

Dependency (parents) indemnity compensation (veterans, widows, spouses, and See

and children) children)--------------------------------------------------------------------------------------------------------------------------------------------------------

Considered Not considered........ Not considered....... Considered........... Sec. 3.263.

conditionally........-------------------------------------------------------------------------------------------------------------------------------------------------------- [28 FR 31, Jan. 1, 1963, as amended at 29 FR 15205, Nov. 11, 1964; 31 FR 15632, Dec. 13, 1966; 33 FR 15286, Oct. 15, 1968; 36 FR 8446, May 6, 1971; 37 FR 6677, Apr. 1, 1972; 37 FR 7092, Apr. 8, 1972; 37 FR 21436, Oct. 11, 1972; 38 FR 872, Jan. 5, 1973; 38 FR 26804, Sept. 26, 1973; 38 FR 28826, Oct. 17, 1973; 40 FR 13305, Mar. 26, 1975; 40 FR 57459, Dec. 10, 1975; 41 FR 17386, Apr. 26, 1976; 42 FR 43834, Aug. 31, 1977; 57 FR 59298, Dec. 15, 1992; 58 FR 12174, Mar. 3, 1993; 58 FR 31909, June 7, 1993; 58 FR 33766, June 21, 1993; 59 FR 37696, July 25, 1994; 60 FR 2522, Jan. 10, 1995; 60 FR 18355, Apr. 11, 1995; 62 FR 51278, Sept. 30, 1997; 67 FR 49586, July 31, 2002; 68 FR 60852, Oct. 24, 2003; 70 FR 15591, Mar. 28, 2005; 76 FR 4248, Jan. 25, 2011]