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What Do I Need To Do With The Extra Money From Selling My Home To Avoid Any Issues With My Supplemental Security Income?

Hi I just started receiving Social Security Disability supplemental income due to a motorcycle accident I was involved in I currently own my own home no mortgage only property tax is what I pay I had this all ready when I got supplemental Social Security income I also have a caregiver who takes care of me my question is my home has a big mold problem which affects my health I'm forced to sell my home to put myself into a better home that is in the healthy environment my home sold for 350, 000 I'm in the process of purchasing another home for 285,000 what do I need to do with this extra money to where I would not affect my Social Security Supplemental Income what are the proper steps to avoid any issues with my Social Security Supplemental Income? I'm aware of not having more than $2,000 in the bank but what do I do with this extra money to where it will not affect what income am I allowed to put that extra money into the house for repairs? Can I buy a car with that money what can I do to avoid any issues thank you very much

Hi. To clarify for others who might read this, Supplemental Security Income (SSI) is a needs based program administered by the Social Security Administration.

The sale of a home wouldn't affect Social Security benefits, but it can potentially affect SSI benefits. One of the requirements for SSI eligibility is that a person can't have more than $2000 in countable resources. A home in which the person lives is excluded from counting as a resource, but proceeds from the sale of a home are countable as a resource unless the person uses the proceeds to buy another home in which to live within 3 months of receipt of the proceeds.

If you don't use all of the proceeds from selling your former home on your new home, then the funds you have left over will make you ineligible for SSI if it amounts to more than $2000. Allowable use of the proceeds includes necessary repairs to the new home's structure or fixtures (e.g., roof, furnace, plumbing, built-in appliances) that are identified and documented prior to occupancy (https://secure.ssa.gov/apps10/poms.nsf/lnx/0501130110).

One motor vehicle can be excluded from counting as a asset for SSI purposes. So, if you don't currently have a motor vehicle, then purchasing one could potentially convert your countable assets to an excludable asset. Other types of excludable assets are listed in the following reference from Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0501110210.

Regardless of what you decide to do, make sure you report the sale of your home to Social Security. You can then discuss with them your plans for using the proceeds from the sale.

Best, Jerry

Posted: 
May 25 2022 - 4:25pm
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