SS, SSI and Real Estate Sale

[Heart of Texas]

What is the name of your state (only U.S. law)? Texas

My elderly mother recently moved into senior subsidized housing and is selling her small townhouse. Can anyone tell me how to put this money aside for her without her losing her eligibility for housing or any other benefits, including a small food stamp allotment.

Please! And Thank you.

[JETX]

Originally Posted by Heart of Texas

My elderly mother recently moved into senior subsidized housing and is selling her small townhouse. Can anyone tell me how to put this money aside for her without her losing her eligibility for housing or any other benefits, including a small food stamp allotment.

I doubt that any RESPONSIBLE member of this forum will help her commit 'welfare fraud' by hiding the proceeds of her asset sale.
She needs to be responsible and 'play by the rules'.... by reporting the sale just as required by law.

[Heart of Texas]

Actually, she's going to gift some of the money to my daughter and myself.

I'm wondering what the laws will allow her to have for herself. I had thought we could create a special needs trust for her with the remainder, but I don't think that is allowable in her situation.

[Indiana Filer]

Originally Posted by Heart of Texas

Actually, she's going to gift some of the money to my daughter and myself.

I'm wondering what the laws will allow her to have for herself. I had thought we could create a special needs trust for her with the remainder, but I don't think that is allowable in her situation.

I know you aren't looking at it as fraud, but if she gifts some of the money to anyone, she will need to make sure she keeps enough to cover her needs for the next five years without housing assistance, food stamps, medicaid, etc. There is a five year lookback period that she will have to show that she did not give away assets or someone will have to compensate for those gifts.

Here's an example:

Let's say she sells her townhouse for $100,000. She decides to give you $12,000, and also gives $12,000 to your daughter. Let's say the senior housing costs $3,000 per month. $24,000 divided by $3,000 is 8 months for which she would need to pay her full expenses without any help from the government.

You might say, well, she'll just just the remaining $76,000 to pay her expenses for the first 25 or so months in senior housing or she will use that money to pay her expenses while she lives with you. That will still leave $24,000 that will have to be paid through private funds IN ADDITION TO THE $76,000 before public funds will kick in. Like I said, there is a five year look back period.

Seriously, she needs to NOT gift any money to anyone if she is looking at using any type of welfare (subsidized housing, food stamps, medicaid, etc).

I have a MIL in a nursing home right now. We're private pay right now using her assets.

[found1]

property would have to be taken care of 10 yrs . in advance or else

should have accepted ,, you cant have your cake and eat it to!!!

[freelilbutterfl]

You did not state if your mother is on SSI or regular Social Security. If your mother is on SSI and getting Medicaid, sorry to say, but she will loose her benefits. Medicaid only allows $2000 in resources.

If your mother is on Social Security she can have assets. I live in a senior subsidized apartment too. Every year we are re-evaluated for our rent. If you have a lot of medical, the rent goes down. I asked the Assistant Manager about assets and she said that there is no set amount. She did say that the interest on that money would " get you ". In other words, your rent would be much higher. The interest made on savings, cd's, etc. would be counted towards your income.

As Indiana Filer stated , there is a five year lookback period. I suggest that your mom talk to an attorney who handles matters such as this, only if your mom is on regular Social Security.

You can search out the site for Hud and there is information there about your rent, income, and assets. It explains how everything is calculated.

Good luck to your mom.