The Purpose of SSI:
The purpose of SSI, or supplemental security income, is to help individuals who have low income and are age 65 or older, are blind and/or are disabled.
The Rules for Receiving SSI:
Whether you can get SSI depends on your income and resources (the things you own). The two main things Social Security looks at are:
Your Income:
Income is money you receive such as wages, Social Security benefits and pensions. Income also includes such things as food and shelter. The amount of income you can receive each month and still get SSI depends partly on where you live. You can call the social security office to find out the income limits in your state. Social Security does not count all of your income when deciding whether you qualify for SSI.
The first $20 a month of most income you receive;
The first $65 a month you earn from working and half the amount over $65;
Food stamps;
Shelter you get from private nonprofit organizations; and
Most home energy assistance
If you are married, they also include part of your spouse’s income and resources when deciding whether you qualify for SSI. If you are younger than age 18, part of your parents’ income and resources are included. And, if you are a sponsored noncitizen, your sponsor’s income and resources may be included.
Social Security will not count any wages a blind person uses for work expenses. For example, if a blind person uses wages to pay for transportation to and from work, wages used to pay the transportation cost will not count against you. If you are disabled or blind, some of the income you use (or save) for training or to buy things you need to work may not count.
(Be sure to pay special attention to this next section as it contains the biggest loophole in the SSI Program)
The second main thing Social Security looks at is your resources (things you own):
Resources that are counted in deciding whether you qualify for SSI include real estate, bank accounts, cash, stocks and bonds. You may be able to get SSI if you have no more than $2,000 in resources. A couple may be able to get SSI if they have no more than $3,000 in assets. Social Security does not count everything you own in deciding whether you have too many resources to qualify for SSI. For example, they do not count:
1.The home you live in and the land it is on;
2.Life insurance policies with a face value of $1,500 or less;
3.Your car (usually);
4.Burial plots for you and members of your immediate family; and
5.Up to $1,500 in burial funds for you and up to $1,500 in burial funds for your spouse.
Other rules you must meet:
To get SSI, you must live in the U.S. or the Northern Mariana Islands and be a U.S. citizen or national. In some cases, noncitizen residents can qualify for SSI. For more information, ask for Supplemental Security Income (SSI) For Noncitizens (Publication No. 05-11051).
If you are eligible for Social Security or other benefits, you should apply for them. You can get SSI and other benefits if you are eligible for both. If you live in certain types of institutions, you may get SSI. If you live in a city or county rest home, halfway house or other public institution, you usually cannot get SSI. There are some exceptions to this rule.
If you live in a publicly operated community residence that serves no more than 16 people, live in a public institution mainly to attend approved educational or job training to help you get a job or if you live in a public emergency shelter for the homeless, you may get SSI. If you live in a public or private institution and Medicaid is paying more than half the cost of your care, you may get a small SSI benefit.
The Biggest Loophole in the Social Security SSI Program:
The loophole is simple enough to understand but complex to put into action correctly. SSI rules state that a person cannot be worth above $2000 if they are not married, and $3000 if they are married. In order to determine if a person, or married couple, is worth above the limit, Social Security looks at their resources and what they own. They look at real estate, bank accounts, cash, stocks and bonds that the person or couple owns. However, they do not look at the accounts or anything belonging to a person who is not involved at all in the receiving or distributing of benefits. There in lies the loophole.
If the person who receives the benefits were to cash their SSI check and sign over only the money from the check to a trusted third party, then the money no longer could be considered as their resource or asset. The person to whom the money was signed over to would then put that money in some sort of account that accrues interest and would use the interest for the benefit of the SSI beneficiary.
The loophole put into action:
The beneficiary of the SSI check would contact a trusted third party, preferably a family member, and would purchase an item that is not counted as an asset from that person. In return, the third party would receive the money for the item, the amount of the check, and would put that money in an account that gains interest. The interest would then be used by the third party for the benefit of the beneficiary of the SSI. Be sure to get a receipt for your purchase so that you have a record of your transaction in case you are audited.
DISCLAIMER:
I am in no way saying you should do this. I am simply stating what I have experienced and understand to be true. If you do implement this plan, you will bear the consequences, good or bad.
