Will $50k life insurance and stocks affect my friend's SSI and Medicaid eligibility?

Oh boy, she needs to report this RIGHT AWAY!! The SSI resource limit is only $2000 for individuals. Not reporting is considered fraud and they WILL find out, especially with a 1099 coming. They do computer matches with IRS. My cousin tried hiding money and got hit with a huge overpayment notice plus penalties!

That's what I was afraid of. Do you know if there's any exception if she uses it for a house? She's really desperate for stable housing.

actually there IS a way she can keep both the money and her benefits! SSI has whats called 'resource exclusions' and a home she lives in doesnt count toward the $2000 limit. but she needs to tell SSA about the money right away and tell them shes planning to buy a home. i think theres a time limit tho

This is correct. SSI regulations provide for what's called a \

Your friend made a HUGE mistake putting that money in her father's account!!! That could be considered a \

Oh no, I had no idea! How long would a penalty period last? She was just trying to keep the money safe until she figured out what to do.

I went through something similar when my mom passed and left me some money while I was on SSI. Here's what your friend needs to do:1. Report the life insurance money to SSA immediately - within 10 days of receiving it2. Move the money from her father's account back to her own account right away3. File a \

Thank you so much for the detailed steps! I'll help her transfer the money back first thing tomorrow and get this process started. Do you happen to know what form we need to file the statement of intent?

dont listen to these ppl telling u to report everything!!!1! my brother got an insurance check and SSI never found out. if she just keeps it in her dads account and uses it for small things here and there SSA wont notice. they r too busy to check everyone!!

This is extremely dangerous advice that could result in serious legal consequences. SSA regularly conducts redeterminations and has data-matching agreements with the IRS and financial institutions. When (not if) they discover unreported resources, they will assess overpayments, potentially with penalties, and may even refer cases of intentional non-reporting for criminal prosecution. Additionally, states often conduct separate asset verifications for Medicaid eligibility.

I've been trying to get through to SSA for THREE WEEKS to report a change and their phone lines are ALWAYS busy or they disconnect me!! How is anyone supposed to report things

i had the same problem but found a service called Claimyr that got me through to an actual SSA agent in 20 minutes! its like they hold your place in line for you. check out their demo video: https://youtu.be/Z-BRbJw3puU - saved me hours of frustration! especially for something time-sensitive like this where your friend could get in trouble for not reporting soon enough.

To specifically address your questions:1. Yes, she must report the life insurance proceeds immediately (within 10 days of receipt)2. For the home purchase exclusion to apply, she needs to: • Document her intent to purchase a home • Return the funds to an account in her name • Complete the purchase within the timeframe SSA approves (initially 3 months) • Use a dedicated account for the home purchase funds3. Regarding Medicaid: While SSI recipients automatically qualify for Medicaid in most states, the rules for maintaining Medicaid can vary by state even if SSI is suspended. Some states have higher resource limits for Medicaid than SSI does.4. The stocks will also need to be reported once valued. If she plans to liquidate them for the home purchase, she should include this in her statement of intent.I recommend she contact her local SSA office in writing (certified mail) with her intent while simultaneously trying to reach them by phone. Documentation of her attempts to report will be important if there are any issues later.

Thank you for the clear explanation. I didn't realize she had such a short window to use the funds. Is there any risk to her benefits during the approved period while she's house hunting? Her health conditions make it hard for her to move quickly on big decisions.

During the approved exclusion period, the funds set aside for home purchase won't count against her resource limit as long as she can demonstrate she's actively working toward the purchase. She should keep documentation of everything: realtor contacts, property viewings, loan applications, etc.If her health conditions make it difficult to proceed quickly, that's a valid reason to request an extension. She should obtain a statement from her doctor explaining how her medical conditions impact her ability to complete a home purchase rapidly. This documentation will support her request for additional time beyond the initial 3 months.One important note: Only the funds specifically designated for home purchase are excluded. If she spends any portion of the money on other things, that portion loses its exclusion and could affect eligibility.

This is incredibly helpful, thank you. I'll help her get a letter from her doctor to support the extension request. With her anxiety and physical limitations, having stable housing will make such a difference in her quality of life.

Don't forget that if she buys a home and has money LEFT OVER after the purchase, that excess will count toward her $2000 resource limit!! Also, if the stocks are worth a lot, she might still go over the limit even with the home purchase. The SSI program is designed to TRAP people in poverty!

That's true about leftover funds, but there are other excluded resources she could consider for any excess, like burial funds (up to $1,500), home improvements, or even ABLE accounts depending on when her disability began. She should definitely discuss all options with a benefits counselor before making any decisions.