Supplemental Security Income (SSI) is a needs-based program that provides monthly payments to elderly, blind, or disabled people with limited income and resources. SSI is different from Social Security retirement benefits, which are paid to people who have worked and paid Social Security taxes for many years. The Federal regulations governing SSI state that all resources (including checking and savings accounts, certificates of deposit, etc.) need to be spent down before an SSI recipient can qualify for benefits. The regulations also place a limit on the value of a real estate that an individual may own and still remain eligible for SSI. In order to qualify for SSI, you must meet all of the following criteria: There are a few different ways that an SSI recipient can inherit a home and still keep eligibility for benefits. Here are some tips: If you sell the home and use the money to pay down your other financial resources, you may be able to keep your SSI benefits. The amount of your resources will be reduced below the limit, and you will be able to continue receiving benefits. This means that you could give your home to another family member who is not an SSI recipient, such as your spouse, child, or sibling. Of course, before you do this, you will want to make sure that the other person is able and willing to keep up with the financial demands of owning a home. A special type of trust called a "special needs" trust can be set up where the title to your home is transferred to the trust. The trust can then be managed by a trustee who will make sure that the property is used for your benefit. This option can be especially useful if you have a family member who is not able to care for you and you would like them to be able to live in the home after you die. If you keep the home and rent it out, you will be able to receive rental income without affecting your SSI benefits. However, you will need to make sure that the rent is reasonable and that all of the necessary taxes and repairs are taken care of. A financial advisor can help you sort through your options and choose the best strategy for receiving an inheritance without losing your SSI benefits. They can help you understand how each option will impact your benefits and what you need to do in order to maintain eligibility. A financial advisor can also help you plan for the future and make sure that you have enough resources to live on even after you stop receiving SSI benefits. Lastly, a financial advisor can help you manage your money and make sure that you are getting the most out of your finances. Final Thoughts Inheriting a home can be a blessing or a curse, depending on your circumstances. If you are receiving SSI benefits and are fortunate enough to inherit a home, it is important to know your options and how they may impact your benefits. It is also important to seek legal and financial advice so that you can make the best decision for yourself and your family. Remember that you should never give up your SSI benefits unless there are no other options available to make sure that you have enough financial resources to live on without them. The benefits that you receive from SSI can be invaluable, and it is important not to jeopardize them without good reason. Eligibility for SSI
How to Inherit a Home Without Losing Your SSI Benefits?
Sell the home and use the money to pay down your other resources.
Transfer ownership to another family member who is not receiving SSI.
Transfer ownership to a trust created for your benefit.
Keep the home and rent it out.
Tips for Inheriting a Home While Receiving SSI Benefits
This means having a deed prepared so that there is clear evidence of ownership of the property.
This is because the amount you receive from the sale of a home will be counted as income for eligibility purposes.Work With a Financial Advisor
Supplemental Security Income (SSI) FAQs
Supplemental Security Income (SSI) is a type of need-based financial assistance provided by the Social Security Administration to eligible individuals who are aged, blind, or disabled, and have limited income and resources.
To qualify for SSI, you must be a U.S. citizen or national, and meet certain criteria related to age, blindness, or disability, as well as income and resource limits as prescribed by the Social Security Administration.
Generally, if your countable income is below the Federal Benefit Rate (FBR), which is set by the Social Security Administration, you may qualify for SSI. The current FBR limit is $794 per month.
To be eligible for SSI, your resources generally must not exceed $2,000 ($3,000 for couples). Resources must be owned and available to you, such as bank accounts, property, or vehicles.
Yes. You may qualify for both SSI and Social Security retirement benefits at the same time. However, depending on your income and resources, your SSI benefits may be reduced or eliminated.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
