Supplemental Security Income (SSI) is available to those over 65, disabled adults, and children who need income assistance with less than $2,000 of assets or $3,000 if married. If you receive SSI, then proceeds from the sale of your home could temporarily make you ineligible for SSI payments. In this blog, we’ll discuss what you need to know if you receive SSI and want to sell your home.
Resource Limits for SSI
Individuals receiving SSI are limited to having total assets of no more than $2,000, excluding the home’s value in which they live and a motor vehicle. A single person must not have more than $2,000 in resources, and a married couple cannot have more than $3,000 in resources to be eligible for SSI. Resources are anything you could sell to pay for your living expenses. Examples include cash, checking or savings accounts, real estate other than the home you live in, vehicles (other than one car), stocks and bonds, and retirement funds. Even if you are deemed disabled, owning excess resources can prevent you from getting SSI benefits.
Selling Your Home While on Social Security Benefits
With the sale of your home, your income may increase enough to make you no longer eligible for SSI and Medicaid. After you sell your home, you have three months to buy a new home. If you buy a new house in those three months and still have less than $2,000 in assets, you’ll retain your benefits. However, suppose in those three months you fail to buy a new house. In that case, the money you made off the sale will determine your eligibility for benefits each month that your assets exceed $2,000.
To reinstate your benefits, you will have 12 months in which to “Spend Down” funds and apply for reinstatement. Social Security will need a record of what was purchased with the proceeds of your home. Transferring money to family or friends is not permitted. If you do not allocate your extra funds within 12 months, you may have to start the SSI application process again.
Contact Disability Attorneys of Michigan for Help
Complying with Social Security law can be a complicated task, especially if you’re handling a major life event such as selling a home. Our attorneys in Warren, MI, will answer any questions you may have regarding your Social Security benefits. The call is free. The advice is free. Contact the Disability Attorneys of Michigan now for a free case consultation at 800-701-5524.