Antarctica

My friend Nate from ERI is always asking me when I’m going to take a trip to someplace interesting like Antarctica so I’m very excited to give him a shout out from that very place! “Hey Nate! Thanks for the suggestion.” I can report that I have not seen any polar bears from land, air or sea so far. As a matter of fact, from what I understand and from personal experience, spotting polar bears is not very easy. What is easy is keeping in touch with what’s happening at home. I received this excellent question recently – a topic that comes up frequently.

Dear Ben,

I have a client who is disabled and receives both SSDI disability benefits and SSI disability payments. His aunt is 85 years of age and is planning to move out of her house that she owns (worth about $80,000) and into an apartment. She wants to give the house to my client to live in. If she does this and he moves into the house, would he lose his SSDI and SSI?

Neil
Greendale, WI

Dear Neil,

Receiving a house or any other gift does not affect a person’s Social Security Disability Income (SSDI) benefits. And there is no asset limitation for entitlement to SSDI.

On the other hand, there are rules regarding how much in income and resources a person can have and be eligible for Supplemental Security Income (SSI.) The month your client receives ownership of the house, Social Security considers its value as income to him that month because the house provides him shelter; however, the value of shelter is capped at the Presumed Maximum Value (PMV) for in-kind support, which in 2009 is $224.66 (one-third the Federal Benefit Rate for an individual of $674.). So he would be charged with $224.66 as income for that month.

The month after that, the house becomes a resource that he owns. The countable resource limit for an individual for SSI is $2000, however, a home a person owns and resides in is not a countable income so does not count toward that $2000 limit. So as long as he still meets all the other SSI eligibility qualifications, your client will be eligible again with that month. (Source: Social Security Administration POMS SI 00815.550C2 | SI 01120.005 | SI 00835.300)

Please make sure your client contacts his local Social Security office when he receives ownership of the house.

All the best, I’m definitely going to choose someplace warm next!
Ben

Appalachian Trail

Hi Ben!

I had a question recently about State-Only 1619(b) and assets. In getting the answer I was told State-Only 1619(b) works “just like federal 1619(b)” yet I am unclear exactly how that works as well. So, my question is this: If a person is receiving Medicaid under 1619(b) and goes over $2,000 in assets one month but then is back under $2,000 three months later can that person go back onto 1619(b)?

Thanks for all your help, Ben! Enjoy whatever destination you find yourself in next! Terri

Terri,

The short answer to your question is: yes, the person in the situation you described would regain 1619(b) status.

The reason has to do with the distinction between “suspension” of SSI and “stop payment” of SSI.

Suspension occurs when a person becomes ineligible for SSI; for example, having excess resources at the beginning of a calendar month. Generally an SSI recipient has twelve (12) consecutive months after the effective date of suspension to be reinstated (without a new application) if eligible again.

More from the Appalachian Trail!

Stop payment status is an interruption in SSI payments and not the loss of eligibility; 1619(b), not receiving payments due to work earnings, is a stop pay situation so eligibility continues. Cash payments may be reinstated on a stop pay record regardless of how long the recipient has been in non-pay.

If a recipient becomes ineligible during a stop pay period (such as in your case), the payments are suspended and the principle stated above applies: the recipient has 12 consecutive months to be reinstated to pay status or stop pay status (1619b) if eligible again. Of course, to regain 1619(b) eligibility, the person would also need to meet the other 1619(b) requirements. (POMS SI02301.201)

To put it another way, an SSI recipient who does not meet a nondisability requirement in a month (other than excess income due to work) goes into suspense status and stays there until the first month within the next 12 in which all requirements are met for 1619(b) or regular payments. (POMS SI 02302.010E.1)

I’m responding to you from Max Patch (near Hot Springs, NC); I am hiking on the Appalachian Trail where the mountains are high and smoky. I was playing a little mandolin (see Mom I do practice!) and these two fellow hikers stopped to listen for a while!

Ben