Resources: Supplemental Security Income

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Resources Supplemental Security Income

• Presented by
• John Benbow
• ERI/WDBN
• October 15, 2009

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Resources for SSI
One of two need criteria in determining SSI
eligibility

• A persons countable resources need to be within
  certain limits
• General expectation is that individuals or
  couples whose resources exceed the applicable
  limit will use excess to meet their needs before
  becoming eligible for SSI benefits
• POMS SI 011

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Resources and Assets

• An asset is any item of economic value owned by
  someone
• Not all assets are resources for SSI

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Resources and Assets

• Resources for SSI are
• cash and
• personal and real property that a person owns,
  can convert to cash, and cannot legally be
  restricted from using for support and maintenance
• Some resources are not countable for SSI

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Property as Resource

• Property of any kind (including cash) cannot
• be an SSI resource unless person has
• Legal ownership interest, and
• Legal right to access (right to spend or convert
  property), and
• Legal right to use property for own support and
  maintenance

6
Value of Resources

• Value of a resource is normally amount of
  persons equity in it.
• Current Market Value (CMV) of a resource is going
  price for which it can reasonably be expected to
  sell on the open market in particular geographic
  area involved.

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Value of Resources

• Equity value (EV) is the CMV of a resource minus
  any encumbrance on it.
• Encumbrance is a legally binding debt against a
  specific property.

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SSI Resource Limits

• Countable resource limit -
• 2,000 for single recipient, 3,000 for couple
• 1619(b) recipients subject to same limits.
• Resources in excess of limit on first moment of a
  month will make recipient ineligible for all SSI
  cash benefits for that month.

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Resource Limits contd

• Ineligibility will continue until resources fall
  below limit on 1st of a following month.
• If excess resources continue for twelve (12)
  consecutive months, new application needed to
  become eligible for SSI again.

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Children and Deeming

• Resources of ineligible parent(s) deemed to child
  even if not made available to child

• Limit is 2000 plus 2000 (one parent) or 3000
  (two parents)

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Children and Deeming

• If more than one SSI eligible child in household,
  value of deemed resources divided equally among
  them

• Normal exclusions apply
• Pension funds of ineligible parent(s) excluded
  from resources for deeming

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Resource Limit Exception

• If an overpayment is caused solely by countable
  resources (including resources deemed to the
  individual) exceeding the limit by 50 or less,
  SSA presumes without fault.
• Neither without fault nor a waiver of the
  overpayment will be granted if individual
  willfully and knowingly failed to report the
  value of the resources accurately and timely.

13
Conditional Payments

• If resources exceed limit but include non-liquid
  ones that may take months to convert to cash for
  support and maintenance.
• All other eligibility factors must be met.
  
• Countable liquid resources cannot exceed resource
  limit of 2000 or 3000.

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Conditional Payments

• Must agree in writing to refund all SSI money
  received at the end of a certain period
• normally 3 months for personal property
• 9 months for real property
• Payments are overpayments to be repaid

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Types of Countable Resources

• Non-home real property lands, buildings,
  immovable objects on such land
• Life estates

• Checking, savings accounts, time deposits
• Stocks, bonds, notes
• Life insurance with cash surrender value

16
Home

• Persons home is excluded regardless of value
• Includes shelter in which person lives and its
  land and related buildings
• Must be principle residence if gone, intends to
  return or dependent relative still there

17
Home

• If excluded home sold, proceeds are excluded if
  another home purchased within 3 months.
• If recipient has made reasonable efforts to sell,
  exclusion continues for as long as person tries
  to sell it.
• If home used for self support activities, it is
  still excluded.

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Jointly Owned Real Property

• When ownership of home shared and recipient
  moves, value of ownership interest in property is
  excluded for as long as sale of property would
  cause undue hardship to co-owner
• Uses the property as his or her principal place
  of residence, and
• Would have to move if the property were sold, and
• Has no other readily available housing.

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Vehicle

• One automobile per household excluded regardless
  of value if used for transportation
• May be car, truck, cycle, boat, animal as long as
  used for transportation

• Recreational only or junked vehicles not
  excluded (these are not personal items either)

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Vehicle

• If multiple vehicles owned, exclusion applied in
  way most advantageous to recipient
• Equity value of other vehicles count as resource
  if not excluded otherwise (PASS, PESS,
  Conditional Payments)

21
Personal Belongings - Excluded

• Household items - personal property found in or
  near the home, used on a regular basis and items
  needed by householder for maintenance, use and
  occupancy of the premises as a home
• Personal effects - personal property ordinarily
  worn or carried by the individual and articles
  otherwise having an intimate relation to the
  individual
• NOT items acquired or held because of their value
  or as an investment

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Retirement Funds

• Countable if can be withdrawn as lump sum (even
  though not eligible for periodic payments)
• If periodic benefits available, must apply for
  those benefits to be eligible for SSI
• If choice between periodic benefits and lump sum,
  must choose benefits
• Not countable if recipient must terminate
  employment to obtain
• Deemors retirement funds excluded

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Grants, Scholarships, Fellowships

• Excluded for 9 months if used for tuition, fees,
  and other educational expenses (not for food and
  shelter)
• Student financial aid received under HEA Title IV
  or BIA programs is excluded from income and
  resources regardless of use PELL, Work-Study,
  Federal loans, others

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Life Insurance

• Life insurance with Cash Surrender Value (CSV)
  may count as resource.
• Life insurance is excluded if Face Value (FV)
  total is 1,500 or less.
• If FV of life insurance over 1500, CSV is a
  countable resource.
• Term life insurance not counted toward 1500 FV
  total.
• Dividends of excluded life insurance excluded as
  income.

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Burial Funds

• Up to 1,500 can be set aside for burial expenses
  for recipient and also for spouse does not need
  to be in irrevocable form
• Pre-burial expenses embalming, cremation,
  flowers, funeral home staff, etc.
• Counting toward 1,500 limit is face value of
• life insurance
• burial insurance
• burial contract funded by life insurance
• prepaid revocable or irrevocable burial
  contracts for burial funds

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Burial Spaces

• In addition to burial funds
• Recipient may have burial space agreement that
  is the purchase of space held for burial
• Excluded regardless of value
• Includes space, vault, markers, containers,
  arrangements opening/closing grave
• May include only one item that serves the same
  purpose per person
• Space exclusion applies to deemors and members of
  immediate family

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Trusts

• Property held by individual or entity called
  trustee who uses the property for beneficiary.
• Trusts established with assets of an individual
  (or spouse) will be considered a resource for SSI
  with certain exceptions, e.g. irrevocable trusts
  with specific restrictions on use.
• If trust is not resource, disbursements may or
  may not be income for SSI depending on the nature
  of the disbursements e.g. cash would be,
  household goods would not.

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Medicaid or Special Needs Trusts

• For disabled person under 65
• Set up by a parent, grandparent, legal guardian
  or a court for benefit of person
• Disbursements from trust may be countable income
• Must provide that state will receive all amounts
  remaining in the trust at persons death up to
  the amount of total medical assistance paid on
  behalf of the person
• May be part of pooled trust

WisPact www.wispact.org
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Individual Development Accounts

• For person receiving TANF
• Earned income put in IDA is deducted from
  countable income in SSI payment computation
• Deposits to IDA matched by TANF
• Money in IDA excluded from resources for SSI
• Disbursements from IDA must be used for
  postsecondary education, business,
  capitalization, or first home purchase
• WISCAP agencies administer

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Property Essential to Self Support(PESS)

• Certain business property can be excluded as a
  resource if used for recipients self support
• Property recipient owns and uses
• - in a trade or business (e.g. inventory) or
• - for work as an employee (e.g. tools)

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PESS

• No limit on value
• Other uses of property do not matter
• Property must be in current use, or a reasonable
  expectation that use will resume within 12 months

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PESS

• Up to 6,000 of non-business property excluded
• If used to produce goods/services for daily
  living needs, or
• If property yields an annual income of at least
  6 of its value

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Plan to Achieve Self Support (PASS)

• SSI recipient plan to set aside money for
  specific work goal excluded as income
  resource
• Must have income other than SSI (T2, work)
• Expenses must be directly related to job goal
• Be in writing and signed (Form SSA-545-BK)
• Goals must be specific, feasible, viable
• Show what income or resources will be used to
  reach the work goal
• Approved initially and reviewed for progress
  periodically by SSA (St Paul cadre)

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PASS

• Goal for SSDI beneficiary must be independence
  (SGA), for SSI recipient to reduce dependency
• Any set aside monies must be clearly identifiable
  from other funds
• Retroactive start date possible only if past
  expenditures/funds clearly identified as being
  for PASS goal

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PASS

• Plan must have specific timeframe start date,
  end date, and target dates in between for
  reaching milestones
• Resources or income of deem or set aside for PASS
  are excluded after deeming
• Recipient in supported employment can have PASS
  with goal to achieve stabilization in job, work
  more, or work with less support

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PASS

• Job coaching expenses limited to assistance
  directly pertaining to job
• Recipient can have only one PASS at a time
• No limit to the number recipient can have
• Aged recipient with SSI disability month before
  turning 65 can have PASS

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Income and Resources

• Cash or in kind items received during a month is
  subject to income-counting rules in that month
• Item kept into month following receipt,
  resource-counting rules apply
• Certain types of income do not become resource
  the next month
• SSI or Title II back pay - 9 months
• Dedicated account for past due payments - no
  limit
• Disaster assistance - 9 to 18 months

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Transfer/Disposal

• Transferring ownership of resource for less than
  fair market value can result in SSI ineligibility
  for up to 36 months.
• Uncompensated value of resources transferred for
  less than fair market value divided by FBR is
  the number of months of ineligibility.
• Transfer of income in month received considered
  transfer of resource if income would have been
  considered resource in the following month.

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Transfer/Disposal

• SSA must notify Medicaid about resource transfers
• Fair Market Value (FMV) is Current Market Value
  (CMV) of resource at time of transfer
• CMV of resource is going price on open market in
  geographic area involved

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Transfer/Disposal

• The period of ineligibility does not apply to
  recipient who spends down cash resources and gets
  FMV in return.
• Giving away cash does not get FMV in return, so
  period of ineligibility results.
• Using cash to buy something for another person
  does not get FMV in return, so a period of
  ineligibility results.

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Transfer/Disposal

• Exceptions to period of ineligibility after
  transfer
• Home if to
• spouse, or
• child (under 21 or disabled), or
• upon institutionalization, to child who provided
  care and had 2 years residence there, or
• upon institutionalization, to sibling with
  ownership interest and 1 year residence there
• Non home resource if to
• spouse, or
• disabled child

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Transfer/Disposal

• More exceptions to period of ineligibility after
• a transfer
• Transfer resource returned in same month
• Certain trusts (e.g. special needs)
• For purposes other than for SSI eligibility
• Undue hardship
• failure to receive SSI payments would deprive
  person of food or shelter, and
• total available funds do not equal or exceed FBR

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Questions?
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• Presented by -
• Wisconsins Disability Benefits Network (WDBN)
• John Benbow, Employment Resources, Inc.
• More about the WDBN online at
• www.eri-wi.org/WDBN.htm