Aug
26
2010
By DarlaK
I am a payee for an elderly family senior citizen who just lost her elderly mother. Her POA is stating that there may be some life insurance monies due to her, but is not sure at this point. What I need to know is not knowing how much, but I think may be a couple of thousand, how will this affect her benefits?
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Life insurance proceeds and effect on Social Security benefits
You aren't explicit, but it sounds like the woman who lost her mother is receiving Social Security retirement benefits. In this case, there is likely no impact on receipt of retirement benefits.
If, however, the woman is receiving SSI (Supplemental Security Income), the resulting cash benefit may become a "countable resource". If one's countable resources is exceeds $2,000 ($3,000 for a couple) their SSI benefit may be reduced.
http://www.ssa.gov/ssi/text-resources-ussi.htm