Yes, you can own a house on SSI (Supplemental Security Income). The house you live in is not counted as a resource when determining your eligibility for SSI benefits. This means that you can own a house and still receive SSI payments.
Here are some key points to remember about owning a house on SSI:
- The house you live in is not counted as a resource. This includes the land the house sits on and any attached structures, such as a garage or porch.
- You can own other property that is essential to your self-support. This includes property that you use for work, such as a car or tools, or property that you use to produce goods or services that you need in your daily life, such as a garden or livestock.
- There are limits on the amount of other property you can own. For an individual, the limit is $2,000. For a couple, the limit is $3,000.
- You may need to report changes in your resources to the Social Security Administration (SSA). This includes changes in the value of your house or other property, or changes in your income.
Resources
Here are some resources that you may find helpful:
- SSI Spotlight on Property Essential to Self-Support: https://www.ssa.gov/ssi/spotlights/spot-property-self-support.htm
- SSI and Property Ownership: What Can You Own?: https://www.specialneedsalliance.org/the-voice/what-property-may-a-person-receiving-ssi-own/
- Social Security Administration (SSA): https://www.ssa.gov/
Frequently Asked Questions
Q: What if I own a house that is worth more than the SSI resource limit?
A: If you own a house that is worth more than the SSI resource limit, you may still be able to receive SSI benefits. The SSA will consider the equity you have in the house, which is the difference between the fair market value of the house and the amount you owe on the mortgage. If the equity is less than the resource limit, you will still be eligible for SSI benefits.
Q: What if I rent out a room in my house?
A: If you rent out a room in your house, the income you receive from the renter will be counted as income for SSI purposes. However, the house itself will still not be counted as a resource.
Q: What if I move out of my house?
A: If you move out of your house, it will no longer be considered a resource for SSI purposes. However, if you continue to own the house, you will still need to report it to the SSA.
Owning a house can be a great way to build equity and achieve the American dream. If you are receiving SSI benefits, you can still own a house without losing your benefits. Just be sure to follow the rules and report any changes in your resources to the SSA.
Can a family member or special needs trust buy groceries or pay rent for a person with disabilities without it impacting eligibility?
BASICALLY NO. Recalling the SSI “food-and-shelter” standard is crucial when it comes to federal regulations. A family member’s purchase of food or housing for an individual on Medicaid or SSI may result in a decrease in public benefits. It’s critical to comprehend the precise meanings of the terms “food” and “shelter” as they relate to SSI regulations in order to comprehend the “food-and-shelter” standard.
Although the concept of “food” is simple, the Social Security Administration (SSA) does not always view food as income. Food “provided during a medical confinement is not income,” for instance, nor is food given in support of a government initiative. Food served while temporarily away from home for longer than a day, like while traveling, is not considered income. “If you or your household consume the food that you or your spouse raises, it does not count as income.” Dog food—such as that for a seeing-eye dog—is not regarded as revenue. A person or a special needs trust may also be subject to the $20 monthly general income cash exclusion and the $60 quarterly irregular and infrequent cash exclusion if they purchase food for a disabled person from a restaurant or other source.
In addition to housing and rent, the SSA defines “shelter” as having access to additional resources like gas, electricity, water, sewage, and garbage collection services. Like food, however, a room provided during medical confinement or a brief stay away from home for more than 24 hours is not regarded as income in the form of shelter.
A person with disabilities who owns a home or a special needs trust is still eligible to receive SSI benefits. Furthermore, purchases of some household goods are not considered shelter. To be more precise, “appliances, carpets, cooking and eating utensils, dishes, furniture, appliances, electronic equipment such as personal computers and television sets” are allowed purchases. Similarly, “items required because of an individual’s impairment” and “personal care items and educational or recreational items such as books or musical instruments” are acceptable. Other costs associated with maintaining a person’s home, such as “weatherization,” “insulation, storm doors and windows,” and “lawn mowing,” are not regarded as shelter.
Furthermore, certain costs associated with maintaining a person’s comfort level at home do not meet the criteria for shelter. For instance, “home energy assistance,” which is defined as “any assistance related to…heating or cooling a home, including portable heaters, fans, and blankets,” is not considered shelter. Additionally, housekeeping and homemaker services—which might be necessary for someone with a physical disability—do not qualify as shelter.
Similarly, the SSA does not view paying phone bills as shelter. The following scenario is provided by the SSA: “Joshua Hall, an SSI recipient, is unable to pay his phone bill, so his sister uses her own funds to pay the phone company.” Since neither food nor shelter are considered income, neither the money paid to the phone company nor the actual telephone service received Lastly, items that are “ordinarily worn or carried by the individual” or “articles otherwise having an intimate relation to the individual,” such as limited jewelry and personal hygiene products, are not included in the count of personal effects.
By being aware of the things that are not included in the definitions of food and shelter, family members and trustees can help people with disabilities live better lives while preserving vital government benefits. Sometimes those exclusions are not immediately apparent or have special requirements. For example, homeowner’s insurance is only included in the recipient’s shelter when the mortgage holder requires it.
Are clothing, household goods, personal effects and automobiles counted when determining eligibility for benefits?
BASICALLY NO. In 2005, the Social Security Administration (SSA) issued important regulations designed to simplify what assets are excluded when determining a person’s eligibility for benefits. This SSA rule explained how income and resources would be treated under the Supplemental Security Income (SSI) program and clarified three issues of concern for persons with disabilities, thereby offering important protections for people with disabilities:
Initially, clothing was removed from the definitions of maintenance, in-kind support, and income. Because of this, gifts of clothing are typically not taken into account when determining a person’s eligibility for SSI benefits or how much those benefits will cost.
Second, the dollar value threshold for the exclusion of personal effects and household goods was removed by the resource-counting regulations. As a result, the SSA does not consider the worth of personal belongings or household goods when determining a person’s eligibility for SSI benefits.
Third, the SSA now has a bright-line rule that, regardless of its value, removes one car from countable resources if it is used for the individual’s or a household member’s transportation.