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  1. #1
    liminal is offline Junior Member
    Join Date
    Aug 2005
    Posts
    2

    Spending Huge Backpay

    What is the name of your state (only U.S. law)?
    California
    I was approved for SSI and SSDI a year ago.
    I have received 3 large back pay payment installments.
    One week after, what I thought, was the last installment, I was sent another huge payment that I was not expecting.
    Now my bank account is well over the $2000 amount I thought I could have before SSI terminated my monthly payments.
    My questions are: Do I have to spend all that money right away?
    How long can I have it in my bank account before it gets noticed and what happens then.
    Can I gift some of it to my mom for when she took care of me.
    Can I take some and put it aside for future medical/dental procedures that I'm planning?
    I'd also like to go back to school and use some of the money but its not like I can just pay for my collage education up front.
    If anyone one could steer me in the right direction on some of these topics I would greatly appreciate it.
  2. #2
    BL
    BL is offline Senior Member
    Join Date
    Jul 2003
    Location
    In the good old US of A
    Posts
    18,869
    [QUOTE]For SSI, we do not count:



    the home you live in and the land it is on;

    household goods and personal effects (e.g., your wedding and engagement rings) ;

    burial spaces for you or your immediate family;

    burial funds for you and your spouse, each valued at $1,500 or less (See the SSI Spotlight on Burial Funds);

    life insurance policies with a combined face value of $1,500 or less;

    one vehicle, regardless of value, if it is used for transportation for you or a member of your household;

    retroactive SSI or Social Security benefits for up to nine months after you receive them (including payments received in installments);

    What is a resource in the Supplemental Security Income (SSI) program?Resources are the things you own such as cash, real estate, personal belongings, bank accounts, stocks and bonds that you can use for your support.

    To be eligible for SSI a person must have $2,000 or less in countable resources. A married couple must have $3,000 or less in countable resources. If you own resources over the SSI limit, you may be able to get SSI benefits while trying to sell the resources.

    Not all of your resources count toward the SSI resource limit. For example:

    •The home you live in and the land it's on do not count.
    •Your personal effects and household goods do not count.
    •Life insurance policies may not count, depending on their value.
    •Your car usually does not count.
    •Burial plots for you and members of your immediate family do not count.
    •Up to $1,500 in burial funds for you and up to $1,500 in burial funds for your spouse may not count.
    •If you are blind or have a disability, some items may not count if you plan to use them to work or earn extra income.





    grants, scholarships, fellowships, or gifts set aside to pay educational expenses for 9 months after receipt.
    Make sure your bank account reflects under 2,000 before the 9 month period .Withdraw it if need be and keep it somewhere else .

    They won't know you have it if you do not tell them . There is no SSI police .
    Last edited by BL; 07-02-2011 at 10:20 PM.
  3. #3
    Onderzoek is offline Member
    Join Date
    Oct 2009
    Posts
    726
    Quote Originally Posted by liminal View Post
    What is the name of your state (only U.S. law)?
    California
    I was approved for SSI and SSDI a year ago.
    I have received 3 large back pay payment installments.
    One week after, what I thought, was the last installment, I was sent another huge payment that I was not expecting.
    Now my bank account is well over the $2000 amount I thought I could have before SSI terminated my monthly payments.
    My questions are: Do I have to spend all that money right away?
    How long can I have it in my bank account before it gets noticed and what happens then.
    Can I gift some of it to my mom for when she took care of me.
    Can I take some and put it aside for future medical/dental procedures that I'm planning?
    I'd also like to go back to school and use some of the money but its not like I can just pay for my collage education up front.
    If anyone one could steer me in the right direction on some of these topics I would greatly appreciate it.
    Nine month exclusion period for retroactive SSI/SSDI benefits.

    Can have a one to 36 month non-payment period of ineligibility for giving away money.

    Why not take care of the medical procedures now or in less that nine months? No exclusion.

    Complete a PASS (Plan for Achieving Self-Support). Lots of information at socialsecurity.gov.

    [url]https://secure.ssa.gov/apps10/poms.nsf/chapterlist!openview&restricttocategory=05[/url]

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