Transferring Assets Could Create a Long Waiting Period When It Comes Time to Apply for SSI
In most cases, transferring resources out of a Supplemental Security Income (SSI) applicant's name will result in the imposit...
Read moreIf an applicant for Supplemental Security Income (SSI), a needs-based federal disability benefit, transfers assets out of her name prior to applying for benefits, she could face a stiff transfer penalty that would delay receipt of often vital services.
In a recent policy issue brief, the National Senior Citizens Law Center (NSCLC) argues that this transfer penalty unfairly harms our poorest citizens because it can result in very long penalty periods. The NSCLC points out that the SSI transfer penalty mirrors the transfer penalty provisions for Medicaid applicants who are seeking coverage for long-term care, but since the numbers used to calculate the penalty periods for the two programs differ substantially, a $70,000 asset transfer that causes a 10-month Medicaid penalty could trigger a multi-year SSI penalty. This disparity occurs because Medicaid divides the amount transferred by the monthly nursing home rate (which is often over $6,000) in order to obtain the penalty period while SSI uses the amount of the beneficiarys SSI award, which is often only several hundred dollars a month, as the divisor.
To read more about SSI transfer penalties and how they affect eligibility for benefits, click here.
Local Special Needs Planners in Your City
In most cases, transferring resources out of a Supplemental Security Income (SSI) applicant's name will result in the imposit...
Read moreTrusts where the funds of many people with special needs are “pooled” may be a better option for some people than...
Read moreA New York Times article on special needs planning for those over age 65 features Special Needs Answers, ASNP and one of its...
Read more