Some people worry that owning a home or land might affect their eligibility for Supplemental Security Income (SSI).
At Burgess & Christensen, we have over 40 years of experience in Social Security Disability matters. We want to ease your concern by explaining what counts toward SSI resource limits. This article is for general education only—please consult a legal professional for specific advice.
SSI Resource Limits: The Basics
The first step is knowing that SSI is a program for people whose resources (or assets) remain under specific thresholds. Currently, a single person can generally have up to $2,000 in countable resources, while a married couple can have up to $3,000.
Any asset you own that can be converted to cash is considered a resource. This includes money in checking accounts, savings accounts, mutual funds, stocks, and real estate that is not your main home. If your resources climb above the limit as of the first day of any month, you would not qualify for SSI for that month.
It helps to keep track of what you have to ensure you are under the limit. Records of all your assets, including real property, can lessen the chance of confusion later. This overview will be expanded in the following sections to clear up which assets count and which do not.
What Types of Property Are Countable Resources for SSI?
Before looking at exemptions, it is helpful to see which assets might cause you to exceed the SSI resource limits. While not everything you possess is counted, certain property is considered “countable,” and Social Security will look at those items when deciding your eligibility.
Below are some examples of what may be counted:
● Cash kept at home, in a drawer, or elsewhere.
● Funds in checking and savings accounts.
● Investments like stocks, bonds, or mutual funds.
● Any additional property besides the home that you live in.
● Valuable personal belongings (beyond exempt limits).
A single piece of countable property may not push you over the limit, but multiple assets combined could. That is why reviewing your resources as a whole is good, rather than just focusing on one item.
Exempt Property: What Doesn’t Count Against SSI Limits
After hearing about countable assets, many people hope there might be carve-outs that let them keep SSI. Fortunately, certain resources are not included in the eligibility calculation. These exemptions exist to help individuals retain property viewed as essential to day-to-day life and basic security.
Common examples of exempt property include:
- The home where you live and the land it sits on.
- One vehicle used for transportation by yourself or someone in your household.
- Household items and personal effects (within reasonable limits).
- Life insurance policies with a total face value of $1,500 or less.
- Burial plots or spaces for yourself and your immediate family.
- Burial funds valued up to $1,500 for you (and up to $1,500 for your spouse).
- Up to $100,000 in an ABLE account.
- Money or property set aside under a Plan to Achieve Self-Support (PASS) for those who are disabled or blind.
These exceptions allow you to preserve essentials that help you remain secure and self-sufficient. Keeping track of exempt property is crucial because some items may look countable at first glance but qualify for exclusion once the details are clear.
Tips for Managing Property and SSI Eligibility
SSI applicants and recipients sometimes find themselves slightly above the resource limit. There are ways to handle that situation without completely giving up benefits. However, you should be cautious when selling or transferring property.
One option is the “Agreement to Sell Property” approach, where you can receive conditional benefits while actively trying to sell a resource that puts you above the limit. If you complete the sale, you could be required to repay those benefits, so it is vital to review all the terms carefully.
Also, be wary of simply giving your property away. If the Social Security Administration believes you transferred an asset to fall below the limit, you risk ineligibility for as long as three years.
Another approach might be to place excess funds in a special needs trust, which can hold assets without necessarily harming eligibility. You should consult a qualified legal or financial advisor to verify whether that is a viable choice for your circumstances.
How Deeming of Resources Affects Children on SSI
Sometimes, the child’s own resources are minimal, but they still lose eligibility because some of their parents’ assets are “deemed” available to them. That is why families must keep track of their combined property to ensure the child remains under the resource limit.
If a child under 18 lives with one parent, $2,000 of the parent’s countable resources typically do not count. Living with two parents means a $3,000 exclusion for the parents’ property. After those exclusions, anything over those limits is considered part of the child’s $2,000 personal resource limit.
This means parents should be aware of their own countable possessions because they can interfere with the child’s benefits. If the child’s total resources exceed $2,000, eligibility for SSI may be affected until they drop below the limit again. Once again, these limits could change.
Get Assistance with Your Social Security Disability Claim
Burgess & Christensen has a strong record of helping clients with Social Security Disability cases. We’re ready to guide you through the SSI application process.
Contact us at 770-422-8111 or visit our contact page for a free case evaluation.