Supplemental Security Income (SSI), not to be confused with Social Security retirement or disability benefits, is a means-tested federal program which many of my clients benefit from. The program is run by the Social Security Administration (SSA).
I just wanted to take this opportunity to share several SSI facts that are not well-known by the general population...
* In order to be "categorically" eligible for SSI, you must be disabled by a medically-determinable physical of mental impairment, but impairment due to drug and/or alcohol addiction no longer counts as a "mental impairment".
* SSI benefits are not subject to garnishment, except for child support wether it is court-ordered or voluntary.
* The amount of your SSI benefit depends on your living arrangements and family status.
* Generaly speaking, an SSI beneficiary must be a U. S. citizen. However, there are several exceptions (too lengthy for a mere blog post), so check with your local SSA office for all the details.
* There are income limitations in regards to SSI eligibility, but the first $20 of monthly income is ignored by SSA.
* There is a $2,000 asset limitation for the SSI program, but a car used to transport the disabled person is ignored by SSA.
At this point, many people are aware that the Federal law for Medicaid was overhauled in 2006, and the changes were not favorable for Medicaid applicants; a longer look-back period of five years, and now the period of ineligibility triggered by the gifting starts when the applicant has just about run out of money.
However, just when you thought this stuff couldn't get any more complicated, keep in mind that these 2006 gifting rules do not apply to Supplemental Security Income, better known as "SSI".
Medicaid is a benefit program that helps you pay for your long term care costs in the nursing home, and in the community under certain circumstances.
SSI is a monthly cash payment that provides minimal income to those over age 65, blind or disabled.
Both programs have very strict financial guidelines before eligibility is established (unlike Medicare and SSDI).
As far as the gifting rules for SSI go, that program uses the "old", more-favorable Medicaid rules. The look-back period under SSI is three years, not five. And the period of ineligibility for SSI begins when the gift is made, not when the applicant has otherwise spent his/her assets down below the asset limit ($2,000 for SSI).
Here's the standard disclaimer (you knew it was coming!): Do not attempt to incorporate planned gifting in regards to government benefits on your own. Seek help from an experienced professional.
