Is There a Limited Value for a Car an SSI Recipient Can Buy?

If you own only one car, that car can be of any value if you use it to transport yourself or other family members. The car’s value will not be counted against your resource limit. There used to be a limit on the amount, but the Social Security Administration removed it in 2005. However, there are some considerations to be aware of.

Owning Multiple Vehicles

You should be careful if you own multiple vehicles in your name or if your spouse owns a separate vehicle. You can lose your SSI eligibility if you own more than one car. If you have multiple cars, you may consider creating a trust or selling your other vehicles. However, the government’s transfer of resources rule can also affect your SSI eligibility. You could lose your benefits for up to 36 months if you transfer property (your other cars) to get around the resource limit. Your ineligibility period depends on the value of the vehicles.

Also, the money you receive from selling a car may put you over the resource limit, again jeopardizing your benefits eligibility. If you transfer the car to a trust, the Social Security Administration may consider the trust itself as a resource. If this happens, it may make you ineligible for SSI payments.

Get Professional Advice

Learn more about government benefits, resource limits, and car ownership. Before making any decisions, reach out to a local special needs planner.