Apr
25
2011
By Guest (not verified)
My parents are selling their home and moving on my property. They intend to purchase a mobile home with the proceeds. They are both ill and need to be close so that I can take care of them. How long do they have to spend the money and what types of things can they use it for. I need to make sure that everything is in order so that their SSI Benefts are not cut. I need this information as soon as possible. They have someone interested in buying.
Thank You
Selling resources (home) while receiving SSI
You will want to proceed carefully with this. Consider contacting the SSA directly or another adviser for help with your particular case.
As you probably know, SSI (not 'regular' Social Security), has income and resource (asset) limitations to qualify for benefits.
There are at least two potential problem areas with this sale. First, if the sale is for less than it is worth, you may be ineligible for SSI for up to 36 months. How long you are ineligible for SSI depends on the value of the resource you transferred.
http://www.ssa.gov/ssi/spotlights/spot-transfer-resources.htm
Second, it's likely that your parents will have money left over after the sale and purchase of the mobile home. If the value of your resources that SSA counts is over the allowable limit at the beginning of the month, you cannot receive SSI for that month. The limit for countable resources (ex. cash) is $2,000 for an individual and $3,000 for a couple.
http://www.ssa.gov/ssi/text-resources-ussi.htm
If your parents try to give away this excess cash to get below the $3,000 limit, they likely will have trouble with the first point (transfers) above.