How does transfer of assets affect my SSI eligibility ?

ByChristopher Le

How Does A Transfer Of Resources Affect SSI Eligibility?

Any Property transferred by you, your spouse, or other co-owner for less than fair market value could cause you to be ineligible for SSI benefits. If you give away property or sell property for less than fair market value there is a presumption that the transfer was made so that you can become eligible to file for SSI.

However, If you did not transfer property just to make yourself eligible for SSI, then you’ll need to provide evidence to the Social Security administration to show why you transferred the property.

 

How Is The Penalty Period Determined?

On all transfers, there is a 36 month look back period.

  • The 36 months goes back from the date you filed your application for SSI.
  • To calculate you Divide the total value of the transferred resources by the monthly SSI benefit amount.
  • The amount in 2022 is $841 per month for an individual and $1,261 per month for a couple.
  • The resulting amount, rounded to the nearest whole number, is the number of months of ineligibility.
  • The period of ineligibility begins on the first day of the month following the month the transfer was made.
  • The period of ineligibility can last up to a max of 36 months. It cannot exceed 36 months.

Are There Other Kinds Of Resources Which can Be Transferred Without A Period Of Ineligibility?

Yes

  • A home transferred to:
  • a spouse; a minor, blind, or disabled child;
  • a sibling who has an equity interest and who lived in the home at least one year immediately before you became institutionalized;
  • an adult child who lived in the home for two years immediately before you became institutionalized and who provided care which permitted you to live at home.
  • Resources to your spouse or to another person for the sole benefit of your spouse.
  • Resources from your spouse to another person for your sole benefit.
  • Resources to your blind or disabled child or to a trust for the sole benefit of your blind or disabled child.
  • Resources transferred to a trust which was established on or after January 1, 2000 if:
  • the resource is available under SSI trust rules;
  • the trust was established solely for the benefit of a disabled person under age 65.
  • Resources transferred for a qualified reason other than to qualify for SSI.
  • Resources if you can show you intended to transfer at fair market value and denial would cause an undue hardship.
  • Transferred resources which have been returned to you.

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Christopher Le is the Founder of the Law Offices of Christopher Le. Born and raised in San Antonio, Texas, he became the first Vietnamese American in his family to become an Attorney. He takes pride in representing the working person against big insurance companies and feels that our system of justice guarantees equal rights to all citizens. He also fights for those who are no longer able to work due to a disabling condition file for social security disability benefits. Christopher comes from a hard working family who came to the United States with very little.