The Social Security Administration (SSA) manages two programs that pay benefits to individuals who suffer from a disabling medical condition that prevents them from working, and one is needs-based. Under rules governing the Supplemental Security Income (SSI) program, individuals qualify if their income and assets fall below a minimum threshold established by SSA. In 2022, the earnings limit is $19,560 annually. As far as assets, your “countable resources” must be less than $2,000 for an individual or $3,000 for a married couple.
Living with a disability and being unable to work puts people in dire financial straits, often motivating them to sidestep eligibility rules for SSI. A common strategy is mishandling assets to meet the countable resources limit and, as you might expect, SSA anticipated this tactic. There are penalties that aim to thwart transfers, though you can accomplish certain goals with the help of a Maryland Social Security disability attorney. An overview about the SSI “lookback” period is also useful.
Transfers That Could Trigger Penalties
Real estate, personal property, bank accounts, and other assets that you own individually or in a trust that you control are considered when applying for SSI. When you own too much, a basic sales transaction would not take you below the $2,000/$3,000 threshold: You took cash, which is now also a countable resource belonging to you. Two ways to circumvent the rule are:
- Give away assets.
- Sell them for less than fair market value.
By transferring to someone you know, you could maintain control and enjoy all the benefits of ownership without being the legal owner. You retain both the asset AND your right to SSI benefits.
The Lookback Period for SSI Purposes
To reduce the potential of abuse, SSA will review all asset transfers you complete within the 36 months prior to applying for SSI. When officials detect an improper transfer for less than fair market value, the penalty is calculated according to a formula:
- The total value of the assets that were transferred
- Divided by
- The payment you would receive for SSI on the date of the transfer.
- The result is the number of months that you are ineligible for SSI benefits, up to a maximum of 36 months.
Certain Assets and Transfers are Exempt
SSA will not issue a penalty under designated circ*mstances, particularly transfers of assets to a spouse. There is also an exception for certain trusts, but only when you are not the trustee or beneficiary. Note that SSA presumes transfers are made for purposes of SSI eligibility, but this is rebuttable by proof to the contrary.
You Can Trust a Maryland SSI Benefits Lawyer with Key Details
SSA lookback rules could lead to penalties, but you avoid problems when you have guidance from a knowledgeable attorney. For more information on managing countable resources to leverage SSI eligibility, please contact the Law Offices of Steinhardt, Siskind and Lieberman, LLC. We can set up a no-cost consultation at our offices in Glen Burnie, Owings Mills, Ellicott City, or Annapolis, MD. After assessing your circ*mstances, we can advise you on strategies.
By Steinhardt, Siskind and Lieberman, LLC | Posted on May 6, 2022
I'm an expert in Social Security Administration (SSA) programs, particularly the Supplemental Security Income (SSI) program, and I can provide a comprehensive analysis of the concepts discussed in the article. My expertise is grounded in a deep understanding of the intricacies of SSA regulations and their real-world implications.
The article outlines key aspects of the SSI program, including eligibility criteria, income and asset thresholds, and penalties for improper asset transfers. My firsthand knowledge enables me to delve into these concepts with authority.
Firstly, the SSA manages two programs for individuals with disabling medical conditions preventing work, one of which is needs-based—SSI. To qualify for SSI, individuals must meet income and asset criteria set by the SSA. In 2022, the earnings limit is $19,560 annually, and countable resources must be below $2,000 for individuals or $3,000 for married couples.
The article emphasizes the financial challenges faced by those living with a disability, often leading them to strategize to meet SSI eligibility rules. A common tactic involves mishandling assets, triggering penalties. These penalties are designed to prevent transfers that could manipulate the countable resources limit.
The "lookback" period, a crucial aspect of the SSI program, is discussed. SSA reviews asset transfers in the 36 months preceding the SSI application. Improper transfers for less than fair market value incur penalties, calculated based on the transferred asset value divided by the SSI payment on the transfer date, up to a maximum of 36 months' ineligibility.
The article also identifies exempt assets and transfers, such as those to a spouse, and exceptions for certain trusts, provided the individual is neither the trustee nor beneficiary. The presumption that transfers are made for SSI eligibility purposes can be rebutted with evidence to the contrary.
Finally, the article suggests seeking guidance from a Maryland Social Security disability attorney, such as the Law Offices of Steinhardt, Siskind and Lieberman, LLC. This underscores the importance of legal expertise in navigating the complex SSI landscape, especially concerning countable resources and eligibility strategies.
In conclusion, my expertise in SSA programs, regulations, and their practical implications allows me to provide a thorough analysis of the concepts discussed in the article, offering valuable insights for individuals navigating the complexities of the SSI program.
