SSI and life insurance proceeds

[porcelina68]

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

My autistic son receives SSI benefits each month. I found out the other day that I am the beneficiary on a life insurance policy that my mother had through her job. I don't know if I'm the only beneficiary, or how much the policy was for at this time since I just mailed the paperwork to the insurance company yesterday.

How do I report this to Social Security? Will it be reported as income in the month that I receive it, even though it's unearned income? How do I deal with it in subsequent months?

 

[Onderzoek]

Unearned income is countable for SSI. Insurance proceeds, unemployment benefits, worker's compensation, rental income, dividends, royalties, private disability benefits, Social Security, inheritances, cash gifts etc. etc. There are about 25 or more categories of unearned income that is countable for SSI. Earned income has two categories; wages and self-employment.

You report it when you get it. In the month of receipt it is countable and if a significant amount, will probably mean your child is not eligible for SSI that month. The following month, whatever you have remaining counts as a resource subject to the $2000/$3000 resource exclusions and deeming to your child. Too much to explain here.

How much do you expect to receive? What do you plan to do with it and when?

 

[porcelina68]

The insurance company won't give me details yet because the claim is still "open" and will not be approved until they receive the paperwork (death certificate and beneficiary statement) from me - which I mailed back yesterday.

If I am the sole beneficiary, it would be at least $20,000. If there is another beneficiary besides myself, it would be at least $10,000. Right off the top, I will be paying my aunt back for funeral expenses, in the amount of either $3,000 or $6,000, depending on whether the entire policy is split or not. I then will be paying off medical bills for myself and my family, repairing 2 vehicles, and possibly getting some dental work done. So, of course, it will be spent down.

I will report it as October income, assuming that it comes to me this month. After that, I will contact Social Security directly to find out how to report the resource. I've never had to do that before, and even after reading about it on their website, I still find it a little bit confusing.

Thank you for your answer. At least it's a little bit clearer to me now.