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Stephanie O Joy, Esq
Stephanie O Joy, Esq, Soc. Sec. Attorney
Category: Social Security
Satisfied Customers: 13522
Experience:  19+ years legal exp. - 10+ years owning/operating her own SSD Law practice.
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If "X" is on SSI and inherits $35,000.00, then will "X" become

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If "X" is on SSI and inherits $35,000.00, then will "X" become disqualified from receipt of SSI until "X" can again qualify on the basis of relatively no assets?
Submitted: 1 year ago.
Category: Social Security
Expert:  Stephanie O Joy, Esq replied 1 year ago.
Hi, my name is ***** ***** I thank you for your inquiry. I have been practicing SS law full time for 10+ years and look forward to assisting you.
Yes, X can not own $35,000 and remain eligible for SSI. However, if instead the inheritance can be put directly (or shortly thereafter) in to a special needs trust that meets the federal rules the exclude it from being counted as an asset, and if X can be the beneficiary of that trust, then the money can useful for him.
Alternatively, if he can inherit the money and immediately use it for something that can assist him save money in the future, but an item that is also "noncountable", then he can really benefit from it. For instance, does he own his own home? If so, he can use it to immediately pay down his mortgage, thereby reducing his housing costs for future months (if he pays it off or refi's). His home doesn't count as resource. If he doesn't have a home but wants to, he can use the $35k to buy a home, either fully (economical location) or mostly, with a very small mortgage. As long has he can swing the carrying costs (prop tax, upkeep) on his SSI, then he may be better off than renting for ever and always having that financial bill each month. He is also allowed 1 car, typically.
The month he legally comes in to the money, he will be ineligible due to "income". Then, for every month he has over $2k (if unmarried) in countabl resources, his ineligible for breaching the resource limit. So if it comes into his hands, he must hustle to spend it down, and hopefully on things that will help him in the future.
He should confer with the estate attorney BEFORE he is sent any money...
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