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
SSDI payments are not affected by having a house, a car, money in the bank, or owning other possessions.
Does it matter how much you have in bank when applying for disability? ›
The SSDI program does not limit how much money you can have in the bank because there are no resource limits as you find with SSI.
How do assets affect Social Security disability? ›
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.
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.
What happens if you have more than $2000 in the bank on SSI? ›
Current beneficiaries who exceed the limits are suspended and then terminated from program participation if their savings remain above the limits, and they must repay any benefits paid while they are over the limit. SSI beneficiaries are limited to only $2,000 in assets of any kind.
Does disability look at bank statements? ›
In the case of Social Security Disability Insurance (SSDI), the SSA does not physically check bank accounts for asset limits. However, you may lose benefits if you have an increase in income or assets that is discovered during a review process.
How often does disability check your bank account? ›
That being said, how frequently does the Social Security Administration check your bank account? While the number of times SSI checks your bank account is not standardized, it may be anywhere from a single year to six years. The SSI can also check when you go through life-altering experiences.
Does money in the bank affect social security disability? ›
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.
What assets count for Social Security disability? ›
Under SSI, you are limited to not more than $2,000 in countable assets for a single person or $3,000 for a couple. For the purposes of SSI, countable assets are classified as cash, stocks, bonds, saving, checking, and other things with a monetary value.
How does social security verify assets? ›
The eAFI process uses the eAFI subsystem in the SSI Claims system and the e4641 website to automatically request and view bank account balance data to help reduce payment errors related to financial accounts. Electronic verification is the preferred method to verify checking and savings accounts.
Yes, under specific circ*mstances, Social Security has the authority to check your bank account without requiring your consent. These checks are conducted to verify eligibility for benefits and prevent fraudulent activities.
Why does Social Security look at your bank account? ›
We use AFI to verify financial accounts during the SSI application process, as well as when we conduct periodic redeterminations of continued eligibility, thereby detecting excess resources and deterring reoccurrence.
What can affect my disability benefits? ›
Generally, if your health hasn't improved, or if your disability keeps you from working, you'll continue to receive your benefits. You are responsible for letting us know whenever a change occurs that could affect your benefits. For example, if your health improves or you go back to work or become self-employed.
How to avoid being cut off SSI benefits when you get a sum of money? ›
Utilizing a “Spend Down” to Maintain SSI Benefits
If you're on SSI and recently received a large sum, you can utilize a “spend-down” to ensure that you remain with SSI's resource minimums. Per the SSA, a “spend-down” involves spending the cash that you've received until you're below the resource maximum.
What is the 5 year rule for Social Security disability? ›
The Social Security five-year rule is the time period in which you can file for an expedited reinstatement after your Social Security disability benefits have been terminated completely due to work.
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.
How far back does SSI look at bank statements? ›
In terms of the timeframe, it can be anywhere between one and six years. They can also have another look when you go through life-altering experiences to see how your finances have been affected. Many wonder whether the money in their savings account will disqualify them from receiving social security benefits.
How much money can I have in the bank? ›
The current FDIC coverage limit is $250,000 per depositor, per ownership category, per financial institution. So if you have checking and savings accounts at multiple banks, each one is FDIC-insured up to that limit.
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.