My mom died and left kids all $5,000. Unfortunately for me, being disabled and on SSI this is $3500 over the limit. I'm only allowed to have $1500 in death benefits and life insurance. I notice that personal items and household items like TV and computers are exempt. How long do I have to convert the $3500 to household items before it is counted as income on SSI.
The $5000 counts as income in the month of receipt. Nothing you can do to change it. You would be overpaid whatever the SSI check was that month, maybe $733? Might as well pay it back right away when you can afford it.
SSI would exclude $1500 in burial funds (for your funeral) that are 'set aside' and designated as such AND anything that is considered a burial space (the plot, casket, etc.). In addition, you can have up to $1999.99 in your other resources such as cash, bank accounts, investments.
One car is excluded, of any value.
So, do you need a car? Do you need a plot? Do you have any old unpaid debt? You could also buy a computer or a TV or a new mattress or a comfortable chair or some pretty sheets or new dishes, pots and pans, video games, a winter coat, snow boots, a room heater or fan, a good stereo system. Do you want to take a trip somewhere? What would make your current life a little more comfortable? After you pay back SSI $733, and set aside $1500 for burial (separate bank account), and put $1900 in your savings account (total $3133) you would have to find items to purchase that totaled $1867.
First moment of the first day of the month rule applies to resources. If the spending is all done in the month of receipt, then the only issue is the excess income for the month of receipt. If it takes an extra month to do the spending, then SSI will stop until the month after the spenddown is complete.
https://secure.ssa.gov/apps10/poms.nsf/lnx/0501120005
https://secure.ssa.gov/apps10/poms.nsf/lnx/0501110003
https://secure.ssa.gov/apps10/poms.nsf/lnx/0501130400
https://secure.ssa.gov/apps10/poms.nsf/lnx/0501130200
