Succession is the transfer to one or more people, under Quebec’s civil code or by means of a will, of the patrimony left by a deceased person. Patrimony is made up of the person’s movable and immovable property, assets and liabilities.
The property is REPORTED when it is transferred to the client.
The INCOME from a succession is fully REPORTABLE;
Certain exclusions apply to PROPERTY received via succession, depending on its nature (movable or immovable). If the value of the property exceeds these exclusions, the aid is reduced by 2% the excess value of the property.
LIQUID ASSETS received via succession are REPORTABLE.
Income, property or liquid assets from a succession are REPORTED differently if the person is receiving aid for severely limited capacity for employment.
CLIENTS WITH SEVERELY LIMITED CAPACITY FOR EMPLOYMENT
Income from a succession is excluded up to a maximum of $950 per month in keeping with the global exclusion of property assimilated to the residence $381, 924.
This exclusion applies when the first allocation from a succession is received during a month in which the person receives income security.
When the full amount of the exclusion $381, 924 is reached, the amounts allocated are once again considered and calculated as income. This also applies to any amount that exceeds the exemption of $950.
The exclusion does not apply:
- In periods following those in which a claim was made;
- When the claim is the product of a false declaration, in periods following the receipt of the amount from a succession.
PROPERTY and LIQUID ASSETS received from a succession are included in the $381, 924 exclusion. For a residence, this amount goes up $1,000 per full year of occupation if owned by the independent adult or family.
The exclusion applies if the assets are received during a month in which the person receives income security.
A trust is when a person, the settlor, places his/her property under the control of another person, the trustee, to benefit a third person, the beneficiary.
Depending on the provisions of the trust agreement, the beneficiary is entitled to the capital, product of the trust or income from the trust.
The amounts received from the trust are reportable in the adult client’s file when paid:
- In cash; or
- In kind, for a need covered by the base benefit.
Patrimony made up of property transferred in trust is autonomous patrimony by appropriation, separate from the person:
- Settlor;
- Trustee;
- Beneficiary.
None of the above have a real right to this patrimony.
The property belongs to the trust. IT IS EXCLUDED FROM THE CALCULATION OF LAST-RESORT FINANCIAL ASSISTANCE (LRFA) benefits, since it does not belong to the CLIENT.
BENEFICIARY
The beneficiary’s share of the trust is established by the settlor or is left at the trustee’s discretion.
The beneficiary has the obligation to require the provision of a benefit granted to him/her by the trust or the payment of the product of the trust and capital, provided that this is set out in the trust agreement (trust deed).
An annuity is a revenue received on a regular basis from an investment or insurance premium. For example, an annuity from a public agency like the Régie des rentes du Québec (RRQ) or a pension plan.
The revenue from an annuity is reportable in full.
PARTICULARITY
An annuity from a Life Income Fund (LIF) is reportable depending on the gross amount. It is payable monthly or annually, depending on what the participating person decides with his/her financial institution.
Donation mainly includes the donation of movable property, namely money. Donating movable property, as opposed to immovable property, does not require any specific formality, as long as it is accompanied by the delivery of the item the person wishes to donate.
For example, the amounts the client receives from his father to pay for a car he owns or to meet his personal needs (when received on a monthly basis) is reported and subtracted from the adult allowance.
The liquid asset received by donation is reported as such in the month of its receipt.
For repeated monetary donations, it is important to refer to 5.5.1, which covers repeated donations and their impact on last-resort financial assistance (LRFA).