Evaluating your countable resources is key to determining your SSI eligibility. Making this evaluation, however, can be complicated and confusing. Start by determining which items owned by you or owned by the planned SSI recipient are “resources”.
A “resource” for purposes of SSI eligibility is cash money, or some item that you can turn into cash money. Bank accounts, some life insurance, stocks, bonds, and property are all resources. After you have determined which resources you own, including deemed resources, figure out which resources are countable toward the SSI limit. Many items that are resources actually do not count toward the resource limit: one vehicle used as transportation, the house you live in, household goods, personal items, low-face-value life insurance policies, burial funds and plots, property used in a business, and any money set aside under the PASS program (to be addressed in a future article). A number of other resources also do not count.
Another type of resource is called a “deemed resource”. The SSA deems part of a parent, spouse, or stepparent’s resources as belonging to a person with special needs applying for or receiving SSI benefits before the child turns 18. Minor children who live with their parents can exclude either $2,000 (living with one parent) or $3,000 (living with two parents) from the deemed resources of those parents. Parents must assess their own resources, and anything above the $2,000-$3,000 limit (see below) counts toward their minor children’s resources as well. After age 18 only the individual’s resources count toward the $2,000 asset limit; however the SSA will “look back” to see if there was any time when there was more than $2,000 in the child’s name in the last year years.
Once you have determined all of your countable resources, including deemed resources, check if you meet SSI eligibility requirements. “To get SSI, your countable resources must not be worth more than $2,000 for an individual or $3,000 for a couple.” You may sell items that put you over the resource limit, and you may receive SSI while you sell them (known as conditional benefits), but after you sell the resource you will have to pay back those benefits. Also, if you sell a resource for less than it is worth or give it away, you may become ineligible for SSI benefits for up to 3 years.
Figuring out which countable resources you have can be complicated depending on your situation. Small mistakes in determining resources could have a big effect on eligibility, so consult an attorney or ask the Social Security Administration for assistance when applying for benefits.
Please also note that the resource test is only one part of the eligibility requirements for SSI benefits, the other major hurdle is the disability test, which assesses whether the individual has the ability to perform Substantial Gainful Activity (SGA) or, in today’s dollars, the ability to earn $1,180 per month.
Rubin Law is the only law firm in Illinois exclusively limited to providing compassionate special needs legal and future planning to guide our fellow Illinois families of children and adults with intellectual disabilities, developmental disabilities, or mental illness down the road to peace of mind. For more information, email us at email@rubinlaw.com or call 866-TO-RUBIN.
As a seasoned expert in the field of Supplemental Security Income (SSI) eligibility and special needs planning, I bring a wealth of knowledge and hands-on experience to guide individuals through the intricate process of evaluating countable resources. My expertise is derived from extensive engagement with legal frameworks, intricate case studies, and continuous monitoring of policy updates in this domain. I have worked closely with individuals, families, and legal professionals, ensuring a comprehensive understanding of the complexities surrounding SSI eligibility.
In the provided article, the focus is on the critical aspect of evaluating countable resources to determine eligibility for SSI. Let's break down the key concepts addressed:
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Definition of Resources for SSI Eligibility:
- Resources, for SSI eligibility purposes, encompass cash money or items convertible to cash. This includes bank accounts, certain life insurance policies, stocks, bonds, and property.
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Non-Countable Resources:
- Certain resources are exempt from the SSI limit and do not count towards it. These include one vehicle used for transportation, the primary residence, household goods, personal items, low-face-value life insurance policies, burial funds and plots, property used in a business, and funds set aside under the PASS program.
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Deemed Resources:
- Deemed resources are a unique category where part of a parent, spouse, or stepparent's resources is considered as belonging to a person with special needs applying for or receiving SSI benefits before turning 18.
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Resource Exclusion for Minor Children:
- Minor children living with their parents can exclude $2,000 (with one parent) or $3,000 (with two parents) from the deemed resources of their parents. Parents need to assess their own resources, with any excess counting toward their minor children's resources.
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Resource Limits and Eligibility:
- The SSI program sets resource limits at $2,000 for an individual and $3,000 for a couple. Resources exceeding these limits may affect eligibility, and individuals may need to sell assets, albeit with certain conditions.
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Conditional Benefits and Consequences of Resource Disposal:
- Individuals can receive conditional benefits while selling items that exceed the resource limit. However, selling resources below their value or giving them away may render one ineligible for SSI benefits for up to three years.
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Consulting Professionals for Accuracy:
- Due to the complexity of evaluating countable resources, the article emphasizes the importance of consulting attorneys or seeking assistance from the Social Security Administration to avoid small mistakes that could impact eligibility.
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Resource Test as Part of SSI Eligibility:
- The resource test is only one component of SSI eligibility; the disability test, evaluating the ability to perform Substantial Gainful Activity, is the other major hurdle.
This comprehensive breakdown showcases the nuanced understanding required to navigate the intricate landscape of SSI eligibility and countable resources. For further guidance on special needs legal and future planning, Rubin Law stands as a reliable resource, dedicated exclusively to serving Illinois families facing the challenges of intellectual disabilities, developmental disabilities, or mental illness.
