One form of gift is the repayment by a third party of a debt contracted by the recipient to pay for property owned by the recipient. To DETERMINE WHETHER THIS REPAYMENT IS TO BE INCLUDED, it is necessary to determine who the debtor is.
If the commitment to the CREDITOR to pay the debt was made by the RECIPIENT himself or herself and a THIRD PARTY pays it for the recipient, the repayment constitutes a pecuniary benefit that MUST BE INCLUDED, if the debt was incurred to cover a need covered by the basic benefit*.
However, a distinction must once again be made between the fortuitous nature of a gift made in any given month and a REPEATED GIFT. Gifts are considered INCOME only if they are repeated; if not, they constitute liquid assets. A distinction must also be made between a gift and a LOAN, as a loan is not included in the calculation.
If the THIRD PARTY is a DEBTOR in respect of this debt, whether as sole borrower, one of a number of joint borrowers or surety, there is no benefit to be included, since the third party is not paying a debt of the recipient alone but one that he or she personally contracted.
Amounts received by a recipient for a need not covered by the basic benefit are not included EXCEPT when the recipient receives them in cash AND in finality. In that case, he or she will be required to demonstrate that these amounts were used to pay the need in order to not be included.
NEEDS NOT MET BY THE BASIC BENEFIT*
The sums received by a recipient for a need that is not covered by the basic benefit are considered for the purpose of calculating the benefit when they are paid IN MONEY on a recurring basis.
In order for the sums of money to be excluded, the recipient must demonstrate that all the sums served to meet the need for which they were intended.
If the sums of money were used only in part to cover the need, the recipient is under the obligation to demonstrate that he has ready access to the remaining sums. In this situation, the total sums received are considered a donation.
* The Income Security basic benefit covers the following needs:
- Food
- Housing
- Household maintenance
- Personal care
- Communications
- Clothing
- Furniture
- Transportation
- Recreation
EXAMPLE
ACCOUNTING FOR SUMS OF MONEY THAT ARE ONLY PARTIALLY USED TO MEET A NEED NOT COVERED BY THE BASIC BENEFIT
- The recipient’s aunt pays for the orthodontic treatment for the recipient’s daughter (her goddaughter).
- This treatment costs a total of $2,500, paid for over 5 monthly instalments of $500.
- The aunt gives the recipient $500 to settle the monthly payment for her goddaughter’s treatment.
- The recipient gives $400 to the service provider and keeps the rest.
The recipient is unable to demonstrate to the band council that the money received every month from her aunt was used to pay for her daughter’s orthodontic treatments. As a result, the $500 received every month for 5 months is considered a donation. The donation is considered repetitive as of the second month and reduces benefits.
1st month = 1st donation, does not reduce assistance;
2nd month = 2nd donation, constitutes repetition, calculated in benefit;
3rd month = 3rd donation, constitutes repetition, calculated in benefit;
4th month = 4th donation, constitutes repetition, calculated in benefit;
5th month = 5th donation, constitutes repetition, calculated in benefit.
Any payments to a debtor or a supplier made by a third party to pay the invoice or account on behalf of a recipient is NOT CONSIDERED FOR THE PURPOSE OF CALCULATING THE BENEFIT, if this debt was incurred from a good or service not covered by the basic benefit.