You’re currently receiving Supplemental Security Income (SSI), and you want to make sure you can keep your monthly checks coming in. However, now you’re set to inherit a house, and you’re wondering: Is this going to affect my SSI payments? By learning more about this topic, you can find out the best plan of action to take.
The Home Exclusion Rule
There’s something called a home exclusion rule when it comes to SSI payments. If you live in the home you’re inheriting, then the SSI won’t count this as a resource. You would have to occupy the dwelling as your sole place of residence.
Let’s say you’re inheriting the home with someone else, like a brother or sister. You both don’t want to live there and you can’t sell it, so you list it as a second home. As long as the home can’t be sold because of extenuating circumstances, then it wouldn’t count as a resource.
Using a Special Needs Trust
Another option to protect your SSI benefits is to put the home in a special needs trust that will permanently own the home. Then, a trustee can disburse the funds to you, the recipient, and you can use the funds to pay for things that SSI won’t cover, such as utilities, education, and medical bills. The special needs trust can be set up through a bank’s trust department. Keep in mind that this is an irrevocable trust, so the trust will permanently own it.
Working With Schott Law
If you need help with SSI, Schott Law is here for you. Maggie Schott is an SSDI & SSI lawyer serving Washington and Idaho. Contact us now at (509) 328-5789 to start your application.