SSI and Selling a house

[foneguy]

What is the name of your state?What is the name of your state?What is the name of your state? California
Along with my mother-in-law, I am on title of the property where she lives. This was the only way for my inlaws to qualify on a refinance to lower their monthly payments. Both of my wife's parents are retired and receiving SS checks and SSI.
I live in my own house, not with them.
They want to sell their house but are concerned that SSI will ask for compensation since the house is now worth plenty more than their mortgage.
My question is:
Will SSI be able to 'charge' back any amount of money SSI has provided after the sale of the house?
If not, will she still receive SSI checks?
What are the qualifications for an individual to receive SSI?
What are the disqualifcations for 'getting off' SSI?

Thanks in advance for any comments...

Joe

 

[bjl1105]

What is the name of your state?What is the name of your state?What is the name of your state? California
Along with my mother-in-law, I am on title of the property where she lives. This was the only way for my inlaws to qualify on a refinance to lower their monthly payments. Both of my wife's parents are retired and receiving SS checks and SSI.
I live in my own house, not with them.
They want to sell their house but are concerned that SSI will ask for compensation since the house is now worth plenty more than their mortgage.
My question is:
Will SSI be able to 'charge' back any amount of money SSI has provided after the sale of the house?
If not, will she still receive SSI checks?
What are the qualifications for an individual to receive SSI?
What are the disqualifcations for 'getting off' SSI?

Thanks in advance for any comments...

Joe

Any income received from proceeds of the sale of the house will be counted as income to the SSI recipient in the month it is received. It is counted as an asset for each month thereafter that it is held. If the assets are over $3000.00 (for a couple) they are no longer entitled to SSI benefits. If they use the money to purchase another home different rules apply and they should contact their Social Security office.
In general, to be eligible for SSI an individual (or couple) must be disabled, over age 65 or blind. they must have limited income and limited assets. They cannot live in a public institution. The rules are very complex and vary from case to case. Additional info can be found on their website www.socialsecurity.gov

 

[foneguy]

Thanks! Brings up another question...

California
Thanks for the reply bjl1105. I found the FAQ with the information you cited at www.socialsecurity.gov

Now, a question my wife came up with was, if one or both pass away, will the SSI program be able to come in and 'claim' some of the estate?
Is there any way the government can charge for the SSI program for those that have legitimately qualified but due to for example, the rising value of a home take a portion to recoup the money distributed by SSI?

I believe that they will not qualify for SSI after the sale of their home for their assets (as a couple) will be well beyond the $3000.
However, if they decide not to sell and live out their lives in their home, the concern is the question above.

thanks

 

[BL]

http://www.socialsecurity.gov/pubs/11000.html

Income
Income is money you receive such as wages, Social Security benefits and pensions. Income also includes such things as food, clothing or shelter. The amount of income you can receive each month and still get SSI depends partly on where you live. You can call us to find out the income limits in your state.

Social Security does not count all of your income when we decide whether you qualify for SSI. For example, we do not count:

The first $20 a month of most income you receive;
The first $65 a month you earn from working and half the amount over $65;
Food stamps;
Shelter you get from private nonprofit organizations; and
Most home energy assistance.
If you are married, we also include part of your spouse’s income and resources when deciding whether you qualify for SSI. If you are younger than age 18, we include part of your parents’ income and resources. And, if you are a sponsored noncitizen, we also may include your sponsor’s income and resources.

If you are a student, some of the wages or scholarships you receive may not count.

If you are disabled but work, Social Security does not count wages you use to pay for items or services that help you to work. For example, if you need a wheelchair, the wages you use to pay for the wheelchair do not count as income when we decide whether you qualify for SSI.

Also, Social Security does not count any wages a blind person uses for work expenses. For example, if a blind person uses wages to pay for transportation to and from work, the wages used to pay the transportation cost are not counted as income.

If you are disabled or blind, some of the income you use (or save) for training or to buy things you need to work may not count.

Resources (things you own)
Resources that we count in deciding whether you qualify for SSI include real estate, bank accounts, cash, stocks and bonds.

You may be able to get SSI if your resources are worth no more than $2,000. A couple may be able to get SSI if they have resources worth no more than $3,000. If you own property that you are trying to sell, you may be able to get SSI while trying to sell it.

Social Security does not count everything you own in deciding whether you have too many resources to qualify for SSI. For example, we do not count:

The home you live in and the land it is on;
Life insurance policies with a face value of $1,500 or less;
Your car (usually);
Burial plots for you and members of your immediate family; and
Up to $1,500 in burial funds for you and up to $1,500 in burial funds for your spouse.

 

[bjl1105]

California
Thanks for the reply bjl1105. I found the FAQ with the information you cited at www.socialsecurity.gov

Now, a question my wife came up with was, if one or both pass away, will the SSI program be able to come in and 'claim' some of the estate?
Is there any way the government can charge for the SSI program for those that have legitimately qualified but due to for example, the rising value of a home take a portion to recoup the money distributed by SSI?

I believe that they will not qualify for SSI after the sale of their home for their assets (as a couple) will be well beyond the $3000.
However, if they decide not to sell and live out their lives in their home, the concern is the question above.

thanks

SSI does not claim money from estates (except for overpayments due the Agency). If they BOTH own the home and one person dies, the other is the rightful owner and the home remains an excluded resource for SSI as long as they continue to live in it.

 

[foneguy]

Thanks, that answers my questions.

Joe

 

[bjl1105]

Thanks, that answers my questions.

Joe

Your Welcome