I have a friend who receives Supplemental Security Income (SSI)...
by: Legal Aid Service of Northeastern Minnesota-Duluth
A legal question and answer column for seniors.
DEAR SENIORS LEGAL LINE:
I have a friend who is disabled and receives financial assistance in the form of Supplemental Security Income (SSI). Is there a difference between Social Security Disability and SSI? Also, my friend tells me that she cannot have more than $2,000 in "countable resources." What does this mean, and what would happen to her if she had more than $2,000?
Signed, Owen
DEAR OWEN:
The Social Security Administration administers both the SSI program and the Social Security Disability Insurance program. These are the two major programs that provide benefits based on disability. The SSDI program is based on a person's prior work history under Social Security. SSI stands for Supplemental Security Income, and it is based on financial need. To be eligible for SSI, a person must have limited income and financial resources and be at least 65 years of age, blind, or disabled.
A person's income determines how much their monthly SSI payment will be. As of January 2007, the maximum monthly SSI payment for an eligible individual is $623. For an eligible couple the maximum monthly amount is $934. The amount a person actually receives may vary based on the state they live in as well as their "countable income." Some states may add a certain amount to the maximum monthly payment. Generally, the more income you have the less your SSI payment will be. If your countable income is over the allowable limit you will not be able to receive SSI benefits. Contact your local Social Security Administration office for detailed information about what income is counted.
A person's resources will also determine if they will be able to receive SSI. A resource is an asset, like money in a bank account, non-exempt real estate, or a second automobile. Under SSI Rules, a single individual can only have $2,000 in countable resources. A couple can have $3,000 in countable resources. If an individual or couple has too much resources, they will not be eligible for SSI. Some resources, such as a homestead, are not counted. Again, contact your local Social Security Administration office for more detailed information about which resources are counted and which are not.
It is important for an SSI recipient to keep countable resources below the $2,000 limit. The recipient cannot save the SSI payments to have savings above $2,000. Furthermore, if the recipient's resources go over the $2,000 limit, the Social Security Administration may determine that the recipient was overpaid. If so, the Administration may then try to collect back the monthly benefits paid out while the resource limit was over $2,000. Keep in mind that an SSI recipient cannot gift resources away to others as a way to become or remain eligible for SSI benefits.
You can see that your friend is somewhat restricted in what she can own as well as what she can do with her resources. The SSI program provides a much-needed lifeline for very low income persons. Since she is low income and eligible for SSI, she may also be eligible for State assistance, such as Food Support.
I encourage you, or anyone with questions on Supplemental Security Income, to contact the Social Security Administration. If you have access to the Internet, you may wish to visit their website at: www.ssa.gov. The website has an excellent "frequently asked questions" section which will answer many, if not all, of your questions.
This column is written by the Senior Citizens' Law Project. It is not meant to give complete answers to individual questions. If you are 60 years of age or older and live within the Minnesota Arrowhead Region, you may contact us for legal help or questions by writing to: Senior Citizens' Law Project, Legal Aid Service of Northeastern Minnesota, 302 Ordean Bldg., Duluth, MN 55802. Please include a phone number and return address. To view previous articles, go to: www.lasnem.org. Reprint by permission only.
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