2-010.01B2f Life Estate Or Land Contract Income

469 NAC 2-010.01B2f

If an applicant receives periodic life estate or land contract income, e.g., annual, semi-annual or quarterly, and the last periodic payment has been spent before the application, the life estate/land contract income may be considered unavailable and not counted in the budget. When the application is approved the worker shall notify the client that s/he must report receipt of the next payment within ten days and that the life estate/land contract income must then be counted in the budget.

After report of the first payment following approval of the case the worker may:

1. Prorate each payment and count it in the budget over the period it is intended to cover; or

2. If the client files a tax return, the most recent Form 1040 may be used to estimate total life estate income to be received over a year. The countable amount may be prorated monthly and counted in the budget until the next Form 1040 is provided.

For examples of deprivation of resources, see 469-000-315.