Planning for the SSI Benefit

Understanding SSI Eligibility and Asset Limits

To qualify for Supplemental Security Income (SSI), a recipient’s total countable assets or “resources” cannot exceed $2,000. Some resources are excluded from this limit, such as a primary home, a vehicle of limited value, certain personal property, or a bank account set aside for burial expenses. When a recipient receives something of value, it is considered income for that month. If the asset is kept into the next month, it becomes a countable resource and may affect SSI eligibility. For eligibility, the income and assets of a spouse, parent (for a child under 18), or sponsor may also be considered.

If a recipient gives away a countable asset or income for less than fair market value, their SSI benefits may be reduced or suspended for up to 36 months, depending on the value of the gift. This penalty period can sometimes be waived in cases of hardship. Returning the asset to the recipient can reverse the disqualification period. However, gifts made by the recipient to a spouse or child with disabilities do not trigger a penalty.

SSI recipients can place their own assets into a self-settled special needs trust without having the assets counted as resources or causing a disqualification period—provided the trust meets legal requirements, including Medicaid payback provisions after death.

About SSI Payments and Income

SSI is a needs-based federal program for aged, blind, or disabled individuals with limited income and assets. The monthly benefit amount is based on living arrangements and available support. As of January 2018, the federal full benefit rate is $750 per month, with some states offering supplemental payments. All income is counted unless specifically excluded, and examples of countable income include wages, Social Security, child support, and gifts for food or shelter. There is no age limit for the blind or disabled categories, but for the aged category, the minimum is 65.

Advice You Can Rely On

The best way to enhance your child’s quality of life is to get reliable legal and financial advice before making decisions about special needs planning. For guidance, contact Shalloway & Shalloway, P.A. at (561) 686-6200 or visit shalloway.com.