Like many legal situations whether owning assets will affect your eligibility for disability benefits is: “it depends”. In this case how owning assets affects qualification for disability benefits depends on which disability program you may be eligible for. There are two disability programs: Social Security Disability Insurance which is known as SSDI and Supplemental Security Income—commonly referred to as SSI.
SSDI pays benefits to you and certain members of your family if you are disabled and you worked long enough and paid Social Security taxes recently enough. SSI, on the other hand, is based on financial need. The Social Security Administration says, “It is designed to help aged, blind, and disabled people, who have little or no income.”
Many clients think that assets will affect their SSDI, when in truth, almost no assets affect SSDI.Qualifying for SSDI is based on your inability to work and your benefits payment is based onyour lifetime average earnings before you became disabled. SSDI payments are not affected by having a house, a car, money in the bank, or owning other possessions.
On the other hand, many SSI clients are surprised to learn that assets do affect their benefits. Social Security will take into consideration the amount of your assets, because it is a needs-based program. To be eligible for SSI, your assets must be less than $2,000 for an individual and less than $3,000 for a married couple. However, not all assets count towards the resource limits. The Social Security Administration lists 44 resource exclusions. The major exclusions are:
- Your home
- One automobile
- Household goods (furniture, etc.)
- Personal effects (jewelry, art work, etc.) as long as the SSI claimant is actually using the items.
- Up to $100,000 in an ABLE account
- Assets in a special needs trust
In addition to asset limitations, there are earned income and unearned income limits that you may not exceed. If you exceed the asset or income limits, Social Security may reduce or even potentially terminate your benefits.
The requirements for SSDI and SSI are complicated and Social Security has an application with many questions to determine your eligibility. If you are considering applying for Social Security disability benefits or if you applied and were turned down for benefits it is only natural that you will have many questions. Let the experienced disability attorneys at Cuddigan Law help you navigate the complicated and oftentimes confusing path to winning Social Security disability benefits. Call or email us today for a free evaluation of your case.
FAQs
Many clients think that assets will affect their SSDI, when in truth, almost no assets affect SSDI. Qualifying for SSDI is based on your inability to work and your benefits payment is based on your lifetime average earnings before you became disabled.
Does money in the bank affect Social Security Disability? ›
The Truth About Savings Accounts and SSDI. Individuals in the Social Security Disability Insurance (SSDI) program receive long-term income because they are unable to work; the program does not place any limits on savings account amounts or other financial assets generally.
How do assets affect disability benefits? ›
Social Security will take into consideration the amount of your assets, because it is a needs-based program. To be eligible for SSI, your assets must be less than $2,000 for an individual and less than $3,000 for a married couple.
What happens if you have more than $2000 in the bank on SSI? ›
If the value of your resources that we count is over the allowable limit at the beginning of the month, you cannot receive SSI for that month. If you decide to sell the excess resources for what they are worth, you may receive SSI beginning the month after you sell the excess resources.
Does disability look at your savings account? ›
Personal assets aren't taken into account, including savings, when applying for the SSDI program. For SSI, however, countable resources (including savings accounts) are capped at $2,000 for individuals and $3,000 for couples.
How much can I have in the bank before it affects my benefits? ›
If you have less than £6,000 of capital then you should be able to claim the full benefit. If you have between £6,000 and £16,000 then you should get a reduced amount. If you (and your partner) are over State Pension age, the lower capital limit is £10,000.
How often does SSDI check your bank accounts? ›
This review can occur every one to six years, depending on your situation, but could happen more frequently if there are significant changes in your circ*mstances. Additionally, the SSA uses a system called Access to Financial Institutions (AFI) to electronically verify bank account balances.
What is the 5 year rule for social security disability? ›
There's no official “five-year rule,” but the phrase refers to a process called “expedited reinstatement,” or EXR. You can file for EXR if you received disability benefits within the past five years, stopped collecting those benefits and need to apply for disability benefits again.
How much money can you make without it affecting your SSI disability? ›
If you have a disability, you'll also need to prove you've earned less than $1,550 from work per month in the month you're applying.
What income does not count against social security? ›
For the earnings limits, we don't count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains.
To get SSI, your countable resources must not be worth more than $2,000 for an individual or $3,000 for a couple. We call this the resource limit. Countable resources are the things you own that count toward the resource limit.
What disqualifies you from Social Security? ›
Some American workers do not qualify for Social Security retirement benefits. Workers who don't accrue the requisite 40 credits (roughly 10 years of employment) are not eligible for Social Security. Some government and railroad employees are not eligible for Social Security.
Does Social Security limit how much money you can have in the bank? ›
An SSI lawyer at Liner Legal can help you to determine how much of an effect monthly income will have on your SSI benefits. Resources, including bank deposits, cannot exceed a total value of $2,000 for one person and $3,000 for couples who are married and residing together.
Does SSDI track your spending? ›
Does the Government Monitor SSDI Spending. Legally speaking, you can spend your SSDI money on whatever you want. Social Security Disability Insurance benefits are paid from payroll tax funds and the amount you earn in benefits is based on what you paid through your individual payroll taxes.
Can Social Security see your bank activity? ›
According to the Code of Federal Regulations, to be eligible for SSI, you must give the SSA permission to contact any financial institution and request your financial records. The agency may also request permission from anyone whose income and resources the SSA considers as being available to you.
Can a bank hold your disability money? ›
A bank is not permitted to freeze any funds directly deposited within the last two months. This is known as the “look back” period. If you receive $1,000 each month in SSDI and your bank account has a balance of $2,000, the bank cannot freeze those funds and must allow you access to $2000.
What income does not count against Social Security? ›
For the earnings limits, we don't count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains.
What can affect disability payments? ›
Two things can cause us to suspend or stop your benefits:
- If, after completing a 9-month Trial Work Period (TWP), you work and earn at a level we consider substantial. ...
- If we decide that your medical condition has improved and you no longer have a disability.
There's no official “five-year rule,” but the phrase refers to a process called “expedited reinstatement,” or EXR. You can file for EXR if you received disability benefits within the past five years, stopped collecting those benefits and need to apply for disability benefits again.
Like many legal situations whether owning assets will affect your eligibility for disability benefits is: “it depends”. In this case how owning assets affects qualification for disability benefits depends on which disability program you may be eligible for. There are two disability programs: Social Security Disability Insurance which is known as SSDI and Supplemental Security Income—commonly referred to as SSI.