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TaxRobin, Tax Preparer
Category: Social Security
Satisfied Customers: 15327
Experience:  15+ years in tax preparation and instruction
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I have a sister in law who has lived with her parents and is

Customer Question

I have a sister in law who has lived with her parents and is collecting SSI her parents have recently just passed away. The estate has to be sold and she is homeless. She was left 20,000- 35,000 to purchase a home. Will SSI take her benefits away if she receives this money, if so is there a way around it?
JA: These retirement benefits are supposed to help us but they can be so complicated! The Retirement Expert will help you get the most benefits propertly. Is there anything else the Retirement Accountant should be aware of?
Customer: No
Submitted: 10 months ago.
Category: Social Security
Expert:  TaxRobin replied 10 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  TaxRobin replied 10 months ago.

The resource limits allowed for SSI are low, the receipt of a lump sum, including an inheritance or a settlement, can disqualify her.

She can choose to

discontinue benefits,

shelter the excess amounts in certain types of special needs trusts, or

attempt to re-qualify for benefits through a process known as a “spending down.”

In order to minimize the loss of SSI , goods and services must be purchased in the same calendar month in which the lump sum is received. Buying a home in the same month would protect her benefits.

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