SSR 60-23. VALUE OF PERSONAL SERVICES RENDERED BY WORKER FOR CLAIMANT

A applied for parent's insurance benefits based on the earnings of his

daughter B. He alleged he had been receiving at least one-half of his

support from B at the time of her death and, therefore, met the support

requirement in section 202(h) of the Social Security Act.

During the year before B's death, A and B had lived together in B's

house; each of them had received $300 in assistance payments from the

Department of Welfare; and B had earned $270 and had provided A with

living quarters valued at $120. The total cash income of $870 was pooled

for their support -- $435 (or half) being attributed to A's support. Due

to A's infirmity, B also rendered personal services and care for her

father that he valued at $1200 for the year. A contended that the total

value of his support should be considered as $1755 ($435 cash maintenance

plus $120 for the value of his room plus $1200 in personal services) and

that B furnished more than half of his support.

Section 202(h) of the Social Security Act provides that a parent of a

fully insured individual who died after 1939 may be entitled to parent's

insurance benefits if, among other conditions, he was receiving at least

one-half of his support from such individual at the time of such

individual's death.

Section 404.332 (b) of the Social Security Regulations specifies

that "support includes food, shelter, clothing, ordinary medical expenses,

and other ordinary and customary items of maintenance of the person

supported."

parent's

insurance benefits if, among other conditions, he was receiving at least

one-half of his support from such individual at the time of such

individual's death.

Section 404.332 (b) of the Social Security Regulations specifies

that "support includes food, shelter, clothing, ordinary medical expenses,

and other ordinary and customary items of maintenance of the person

supported."

Section 404.332 (c) of the Regulations provides that "A person is

receiving at least one-half of his support from another if that other is

making regular contributions, in cash or kind, to such support to the

extent of one-half or more thereof. A person is receiving more than

one-half of his support from another if that other is making such

contributions to such support to the extent of more than one-half thereof.

'Contributions,' as used here, jeans contributions actually provided by

the contributor from his own property or the use thereof, or by the use of

his own credit."

The amount of the contributions in cash and in kind received by A from B

during the year before her death did not amount to one-half of his

support. The total cash income was $870. Dividing this by two gives $435

for each one's support. The value of the room furnished A was $120, making

the total cost of his support $555. One-half of this amount if $227.50.

Since the Welfare Department contributed $300 of A's total support of

$555, B only contributed $255 which is less than one-half of A's

support.

mount to one-half of his

support. The total cash income was $870. Dividing this by two gives $435

for each one's support. The value of the room furnished A was $120, making

the total cost of his support $555. One-half of this amount if $227.50.

Since the Welfare Department contributed $300 of A's total support of

$555, B only contributed $255 which is less than one-half of A's

support.

It is a well established principle that the support requirement in the

law is based on an economic relationship. Consequently, findings regarding

support depend upon the existence or non-existence of an actual economic

relationship between the parties. The value of the care normally furnished

personally by one individual to another does not play a significant part

in determining support under the Social Security Act any more than does

the value of the personal services the individual furnishes for himself

play in determining the cost of his own support. It is generally

necessary, then, when determining support, to exclude personal services

unless such services are purchased.

In view of the above reasons, it is held that the personal

services provided by B to A cannot be considered in determining whether B

contributed at least one-half of A's support.