General questions about SSI

[Seahawkz]

What is the name of your state (only U.S. law)? California
If someone gets approved for SSI and that person has equity in their home does the government subtract money it pays out (dollar for dollar) from the equity in their home?
And what happens if someone on SSI inherits a lot of money? Do they no longer apply for SSI (for as long as they have savings over $2,000)?

 

[OHRoadwarrior]

There are exceptions for a home as an asset. Any time your countable assets exceed $2000 you are ineligible for the month.

 

[Seahawkz]

I understand that the government lets people who are on SSI keep their home, but I guess my question is when they die there may be no equity left for heirs because the government subtracts (from the equity of the house) all that they paid out in benefits. Correct?

With regard to my second question, if you have someone who is on SSI listed as a beneficiary in your will, it might sense to INSTEAD name ANOTHER trusted relative as the beneficiary otherwise the SSI recipient might just burn through that cash in short order. That way the trusted relative could help out the person on SSI while the person on SSI still enjoys the government benefits. Do you follow me? Perhaps the relative could put the person who is on SSI up in a better home but keep ownership of the home.

 

[OHRoadwarrior]

The word for that is fraud. It entitles you to another free home. One with lots of company, steel bars and guns.

I understand that the government lets people who are on SSI keep their home, but I guess my question is when they die there may be no equity left for heirs because the government subtracts (from the equity of the house) all that they paid out in benefits. Correct?

With regard to my second question, if you have someone who is on SSI listed as a beneficiary in your will, it might sense to INSTEAD name ANOTHER trusted relative as the beneficiary otherwise the SSI recipient might just burn through that cash in short order. That way the trusted relative could help out the person on SSI while the person on SSI still enjoys the government benefits. Do you follow me? Perhaps the relative could put the person who is on SSI up in a better home but keep ownership of the home.

 

[Seahawkz]

How is it fraudulent if the person on SSI declares "I'm staying here for free"? Are they no longer entitled to medical benefits?

 

[OHRoadwarrior]

If you have problems understanding the difference between fraud and reality, you are in the wrong place. The purpose of this forum is not to assist you to in committing fraud. I suggest you discuss a beneficiary trust with a lawyer.

 

[Seahawkz]

Nobody said anything about fraud. You did. I am looking into legitimate ways to name someone on SSI into a will. Legitimate ways they can benefit.

 

[OHRoadwarrior]

Nobody said anything about fraud. You did. I am looking into legitimate ways to name someone on SSI into a will. Legitimate ways they can benefit.

You can name them in the will. They will lose SSI for the months they have those assets above $2000. The only legal alternative is a beneficiary trust called a special needs trust.

 

[Onderzoek]

I understand that the government lets people who are on SSI keep their home, but I guess my question is when they die there may be no equity left for heirs because the government subtracts (from the equity of the house) all that they paid out in benefits. Correct?

With regard to my second question, if you have someone who is on SSI listed as a beneficiary in your will, it might sense to INSTEAD name ANOTHER trusted relative as the beneficiary otherwise the SSI recipient might just burn through that cash in short order. That way the trusted relative could help out the person on SSI while the person on SSI still enjoys the government benefits. Do you \ollow me? Perhaps the relative could put the person who is on SSI up in a better home but keep ownership of the home.

Cash or in-kind food or shelter items received as a gift from this 'trusted relative' would be income to the SSI recipient who would then have to 'enjoy' less of his government handouts, I mean benefits.

Medicaid may put a lien on the house owned by an SSI recipient so it could mean less of an inheritance for the family members who did not support their elderly or disabled relative because the government was there to do it.

 

[Seahawkz]

By the way who gets priority over getting paid back (using equity of the home) if and when the SSI recipient dies and their benefits have exceeded the value of the home... The government or someone who loaned money to the deceased SSI recipient PRIOR to them applying for SSI?

 

[sandyclaus]

By the way who gets priority over getting paid back (using equity of the home) if and when the SSI recipient dies and their benefits have exceeded the value of the home... The government or someone who loaned money to the deceased SSI recipient PRIOR to them applying for SSI?

I'm going to take a stab at it and say the government does. The government tends to get their share ahead of any other creditors, I believe.

Again, if someone is loaning money to an SSI recipient, and if the recipient's assets exceed $2,000, the benefits will be reduced or eliminated (whichever is appropriate) as long as the SSI recipient has the extra resources/income.

 

[Onderzoek]

By the way who gets priority over getting paid back (using equity of the home) if and when the SSI recipient dies and their benefits have exceeded the value of the home... The government or someone who loaned money to the deceased SSI recipient PRIOR to them applying for SSI?

This is some sort of cash loan with no security? Unsecured loans are way way down at the bottom of the list of valid debt that are paid out of an estate. Was a promissory note executed? Was a legal lien placed on property?

 

[Seahawkz]

This is some sort of cash loan with no security? Unsecured loans are way way down at the bottom of the list of valid debt that are paid out of an estate. Was a promissory note executed? Was a legal lien placed on property?

I paid some bills by writing checks paid to the order of the people who this relative who owed money to (example: care giver, hostital). I wrote on the checks "loan to [the name of the relative]". No promissory notes or liens or anything like that.

 

[OHRoadwarrior]

They are lowest priority in a collection.

 

[Onderzoek]

I paid some bills by writing checks paid to the order of the people who this relative who owed money to (example: care giver, hostital). I wrote on the checks "loan to [the name of the relative]". No promissory notes or liens or anything like that.

It could also be argued that this was a one-sided loan since you have no written agreement with the 'borrower'. Writing 'loan' on a check is not the same as making an agreement with the borrower. It might not even meet the requirements of a small claim court, let alone a probate court. A valid loan has terms and agreements between the parties.