Ssi inheritance spend down

Spend downs work similarly to a car insurance deductible – individuals are responsible for bills up to the amount a benefits program will pay. If a lump sum is received on the 20th of August for example, the spend down should be completed in days to bring resources below the applicable limit before September 1. What to Purchase: Recipients of SSI need to plan spend -downs carefully. Spending down an inheritance means disbursing the money to remain eligible for public assistance. You may lose a month or more of benefits but otherwise should not have to lose your benefits.

When Might a Spend Down be Appropriate? The process of reducing the value of your assets to qualify for Medicaid is referred to as “spending down. One misconception is that the only way to reduce the value of one’s assets is to spend them on the Medicaid applicant’s medical care. Transfer of Resources by Spend-Down. A Spend Down can allow individuals to plan and purchase a variety of items that would improve their quality of life now and in the future.

Some purchases may include: Pay off existing debts. In the same month, he transfers the $0to his brother. The $0inheritance is counted as unearned income in May. How does inheritance affect SSI? What is spending down allowed for a SSI recipient?

What does spend-down inheritance mean? Is inherited property counted as a resource for SSI? Losing SSI eligibility may also make you ineligible for crucial Medicaid benefits.

Should an SSI Recipient Simply Refuse an Inheritance ? One of the easiest rules to remember is the resource allowance: a single SSI beneficiary may own only $0of countable resources. What Does Spend-Down Inheritance Mean ? Supplemental Security Income ( SSI ) beneficiaries must cope with very stringent income and asset rules in order to receive benefits. To be eligible for most government assistance, you must have low income and limited assets. Because the money you receive qualifies as an asset, inheriting from an estate can affect your ability to qualify for these programs.

If you receive assistance from such programs and you. As a result, if you receive SSI and inheritance is headed your way you must report it to the Social Security Administration as soon as you receive the money. If the inheritance pushes your assets over $0as a single person, or$0if you are marrie you may no longer be eligible to receive the benefits. Without proper planning, your loved one would have to spend or give away the money immediately to avoid losing SSI , a potentially disastrous turn of events for the person you are trying to protect. Therefore, if you receive an inheritance and the amount puts you over the income limits for your state, you will not be eligible for Medicaid for at least that month.

If you can properly spend down the money in the same month it is receive however, you will be eligible for Medicaid again the following month. I just received $3in backpay money, which put my checking account over $000…way over. Into the $0bracket.

For most people, an inheritance is a windfall. For those receiving certain government benefits, though, it can be a disaster.