Changes in Financial Situation While on SSI
I found this board and really enjoy all the information and appreciate the time many of you spend in helping others.
I found this board to ask a medical question and as I was looking around I notice all the other information.
I have a two part question if it is ok to ask them both.
1. My brother in law was nearly killed by a drunk driver a couple years ago and is disabled from the accident. He is on SSI and gets a retirement from his 20 year employer which is part disability and part retirement. The company provided free health care for him and his family for life or while is he disabled.
In January they changed from the free health care to charging him for his wife and two kids 696.00 per month for their health care.
I told him that I heard once that when someone is on SSI and their retirement income gets reduced that the SSI increases to cover the losses.
His disability payment from his work stops at age 62 and he losses it totally and was told at that time the SSI will increase to cover that loss.
With that said would this not be the same? Taking 696.00 out of his monthly pay is reducing the monthly income.
Can he get the SSI changed to cover the losses?
2. He wants to sell his home as they are not making the money they once did and want to downside to a smaller home with a less payment to make. He said he has 75,000 in equity in the home. He was told if he sells the home that his SSI will be taken away because the 75,000 would be considered income and they will stop all payments to him until they reach the 75,000 payout. This does not sound correct to me as he would be getting penalized for having equity in his home.
How does this work? Will he lose his monthly payments because he wants to downsize to a smaller home? Is the 75,000 considered income that will effect his SSI payments or will it be taxed and he keeps his monthly paycheck. I think he said he can only make up to around 7,000 a year anyway and this would be a lot more then that.
I surely would appreciate any help on these two issues.
I do not want them to lose their income because I do not want to see my niece and nephew suffer because of his disability and having equity in the home.
Thank you.