Ask Larry

If I Sell My Home Can Social Security Take Money From The Proceeds?

If I receive SSI benefits and Medicaid, if I were to sell my home, could they take money from me from the proceeds to my sale of my home? I understand that they can take you off SS a high, but if you’re going to reinvest in the home, how can they take that away if you have no other income?

Hi,

If you sell your home it could cause your Supplemental Security Income (SSI) payments to stop, but you would not have to forfeit any of the proceeds from the sale of your home.

SSI is a needs based program administered by the Social Security Administration. To be eligible for SSI payments you must not only have little or no other income, you also can't have more than $2,000 in available resources. The home you live in is excluded from counting as a resource for SSI eligibility purposes, but if you sell your home and the proceeds cause your countable resources to exceed the $2000 limit then your SSI payments could stop. However, if you use the proceeds from the sale of your current home to buy a different home within 3 months of the sale, then you may still continue to be eligible for SSI (https://secure.ssa.gov/apps10/poms.nsf/lnx/0501130110).

Best, Jerry

Posted: 
Apr 26 2019 - 9:45am
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