How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility
I am a rep payee for my son, age 27, who was recently granted a fully favorable decision for disability by SS. His SSDI monthly payments are $710 which is just above the SSI limit for the state (CT) so he isn’t eligible for SSI. Last month, since he wasn’t receiving SSI, he received a lump sum check for retroactive SSI (about $15,000) and a check for SSDI back pay of about $4,000.
He is receiving SNAP and is on Medicaid as well as Medicare. The DSS told me that the income from SS would cause him to be ineligible for the state benefits unless I spend the money until he has below $1600. I’m not clear as to how long I have to do this and getting hold of a live person at DSS is very difficult.
I had told DSS that I wanted to use some of the lump sum to prepay rent since we can’t find an apartment he can afford on his SSDI and there’s a long waiting list for housing assistance. They told me we couldn’t use the money for this, but could use it to buy things like a TV or car or furniture for the apartment he doesn’t have (currently lives with parents). He doesn’t have a driver’s license, and probably shouldn’t drive, so the car isn’t an option I’m considering. He did buy a laptop and I suppose we could buy a TV, dressers, sofa and other furniture and store it until he gets an apartment, but this whole idea of spending to get his asset down confuses me. Aren’t these items “assets” or resources and wouldn’t that disqualify him for benefits? Definitions I’ve seen of “resources” seem to distinguish between “personal property” and “household goods and personal belonging”. I’m not clear on what falls into each category.
Another point of confusion is this. When they say I can’t use the money to prepay rent does that mean that if I did I would have to pay it back to SS or does it mean that he would lose eligibility for some of his benefits or incur some other penalty? Could I use the SSDI portion ($4,000) for prepaid rent?
Since he isn’t getting SSI I’m not concerned with that, but I am concerned about him possibly losing SNAP, Medicaid or QMB.
Please help clear up my confusion. DSS is very difficult to get live answers to questions and I get answers that contradict DSS from the federal SS office and when I point this out to them they refer me to the local SS office which then refers me to DSS.
This forum is fantastic and I appreciate any help you can provide.
Re: Confusion About Lump Sum Ss Payments and Use
This should help a bit.
Quote:
WHAT RESOURCES DO NOT COUNT FOR SSI?
For SSI, we do not count:
--the home you live in and the land it is on;
--household goods and personal effects (e.g., your wedding and engagement rings);
--burial spaces for you or your immediate family;
--burial funds for you and your spouse, each valued at $1,500 or less (See the SSI Spotlight on Burial Funds);
--life insurance policies with a combined face value of $1,500 or less;
--one vehicle, regardless of value, if it is used for transportation for you or a member of your household;
--retroactive SSI or Social Security benefits for up to nine months after you receive them (including payments received in installments);
--grants, scholarships, fellowships, or gifts set aside to pay educational expenses for 9 months after receipt.
http://www.socialsecurity.gov/ssi/te...urces-ussi.htm
Re: How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility
You will need to explore the resource limits for each means tested program in your (undisclosed) state. If you have done so and have learned that your son won't be eligible for means tested assistance if he possesses more than $1,600 in cash, we have no way of verifying that figure. You can search the web using your favorite search engine - you may be able to find information relating to public assistance for whatever state is involved.
The DSS would be telling you about their policies for spending down money under state laws and regulations which, again, we cannot explore as we don't know what state is involved. Not counting prepaid rent as an expense reducing assets makes sense, as the prepaid leasehold is an asset.
You may want to look for a charitable organization that assists parents of disabled adults in your state, as if there is such an organization in your state they should be able to provide a lot of helpful information. Depending upon your own assets and estate planning goals, at some point you may want to talk to a lawyer about whether you should consider creating a special needs trust for your son's future benefit.
Re: How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility
Thanks for your quick reply, Mr. Knowitall. The state is Connecticut.
I can understand how they could consider prepaid rent as an asset in determining eligibility for other benefits, but that's different than saying we can't use the money for that. Maybe I misunderstood them and they were not really saying I can't use the money for prepaid rent, but that if I did, they would still count it as an asset in determining eligibility for other programs. When I do get to talk to a live person from DSS (it can take quite a while before someone returns a call) then I'll ask her what the penalty would be if I did spend the money on prepaid rent. Would I have to pay the money back or would it simply effect eligibility for other programs because they consider it a "countable asset"? That's one of the things I'm not clear on.
Another thing that's confusing to me is what they consider a countable asset in determining eligibility for other benefits. I guess I could compile a list of everything that we're considering buying and ask them which items on the list are countable assets and which aren't, but as I said, it's difficult getting hold of a live person. Also, I know the DSS is understaffed and probably overworked and I don't want to take up a lot of their time if I can find the answers myself.
Re: How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility
I still haven't gotten a call back from DSS (2 messages left in the last week) so I'm still not clear about the spending of the SS lump sum payments. I called SS again today and the rep said spending it on prepaid rent was fine to use the money for. When I told her that the state DSS said I couldn't, she said something like: Well they can set there own rules. When I said that the SS was Federal and so I didn't think the state had the right to tell me how I could spend the money, she agreed and said that my son wasn't currently receiving SSI so there shouldn't be any issue. Since nothing is in writing and SS seems to back off some whenever I say that the state DSS disagrees, I don't feel very confident about this.
Can anyone help me with this? I really feel that the prepaid rent would help my son out since he's not getting enough monthly SSDI to pay for a rent until he can get some type of housing assistance.
Appreciate any feedback.
Re: How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility
Quote:
Quoting
jms15
I still haven't gotten a call back from DSS (2 messages left in the last week) so I'm still not clear about the spending of the SS lump sum payments. I called SS again today and the rep said spending it on prepaid rent was fine to use the money for. When I told her that the state DSS said I couldn't, she said something like: Well they can set there own rules. When I said that the SS was Federal and so I didn't think the state had the right to tell me how I could spend the money, she agreed and said that my son wasn't currently receiving SSI so there shouldn't be any issue. Since nothing is in writing and SS seems to back off some whenever I say that the state DSS disagrees, I don't feel very confident about this.
Can anyone help me with this? I really feel that the prepaid rent would help my son out since he's not getting enough monthly SSDI to pay for a rent until he can get some type of housing assistance.
Appreciate any feedback.
Well, one thing that I can tell you is that you are free to spend the assets in whichever manner you feel promotes your son's best interest. There is no restriction on you there.
The only question is whether or not what you spend them on would be countable assets that would reduce his state benefits.
Here is a link to the CT DSS website.
http://www.ct.gov/dss/site/default.asp
Perhaps the information you are looking for will be there.
Re: How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility