Third Party Beneficiary Payments
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This section provides information on payments received by a participant as a representative payee for the care and maintenance of another person.
Policy
Third Party Beneficiary payments are not countable when used for the care and maintenance of another person. A participant may be the representative payee for another participant in the budgetary unit, or a nonparticipant who is either in the home with the budgetary unit, or outside of the home.
When a payment is received and intended for both the participant and another person who does not live with the participant, all of the following apply:
●The income that is retained by the participant and not used for the care of the beneficiary is countable as unearned income.
●When the person’s portion cannot be identified, the income is divided among the intended beneficiaries.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Verification
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for Third Party Beneficiary payments include, and are not limited to, any of the following:
●Assistance payments records
●AZTECS INTERFACE INQUIRY MENU (ININ) for verification of SSA or SSI income
●Benefit award letters from SSA
●Statement of Earnings VA, and other agencies
●Bank records
●Agency or payer providing the income
●Court records or court orders
●DCSS documents or print outs
●Divorce or separation papers or contact with the Clerk of the Court
●Current check reflecting gross income (Do not copy federal government checks)
●Federal or state tax forms
●Insurance policies
●Mortgages and Sales Contracts
●Signed statement from the agency or payer providing the income
●Absent Parent
Legal Authorities
AAC R6-12-505
A.R.S 46-292-P01
7 CFR 273.9(c)(8)
7 CFR 273.9(c)(6)
last revised 10/02/2023