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John Legal
John Legal, Attorney
Category: Legal
Satisfied Customers: 4631
Experience:  Over 15 years legal experience.
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Again, dont find the category Im looking for... and here

Resolved Question:

Again, don't find the category I'm looking for... and here goes...
My mother passed away in Nov and she left a piece of rental property in a Living Trust [I think that's what it is called!] - we have had it appraised and would like to sell it, preferably to the current mgr that lives there - he was prepared to buy it - had about $10,000 for a down payment... and then, had a heart attack!!! The doctor has told him he cannot go back to job that he was doing [mgr of a fast food place] and advised him to go on disability. Ok, so here is the question/dilemma: Can he buy the property before he applies for disability and if so, would that affect his getting disability? I understand that he cannot have that much money in his bank acct when applying for disability as they would disallow the full amt because of the monies he has saved - right? The income from the other 2 units in the house would virtually allow him to live there rent free... so he should be ok financially w/just the disability - the sad part is he is in his 40's!
This is in KY.
Submitted: 2 years ago.
Category: Legal
Expert:  John Legal replied 2 years ago.
Welcome! Thank you for your question. You have found a proper category. You are probably looking for Elder Law but that category does not exist on this site. Those questions fall under the general Legal category. I need a bit of information so I can answer your question.

Would he be renting this property out after purchase or using it as his primary residence? It sounds like he would be renting part of the property out, is that correct?
Customer: replied 2 years ago.

Yes, he would be renting part of it. It would function just the same as it is now only he would own it...

Expert:  John Legal replied 2 years ago.
The house itself would not cause him probables with disability payments. However, the rental income and management activities could cause two separate problems.

First, the management of the rental units could be considered by Social Security as "work" that would show that he does not qualify for disability because he is capable of "working." (I.E. acting as a property manager.)

Second, even if he does still qualify as disabled, if he does not have sufficient work history then his disability will entitle him to low income benefits (SSI) instead of typical SSD benefits. The low income benefits are based on both his disability determination and on his income and assets. Since the property is his home it will not count as an asset that must be below $2,000. However, the income will reduce his SSI benefit dollar for dollar based on the rental income.

With all that said, it is very likely that this property purchase will cause him problems with any benefit that he may be entitled.

I cannot provide you with legal advise. I have provided you with information about the law related to your question. My answer, and any information that you find online, should not take the place of having a consultation with a lawyer in your area to advise you regarding your specific issues.

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John Legal, Attorney
Category: Legal
Satisfied Customers: 4631
Experience: Over 15 years legal experience.
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