Excluded Burial Funds and When Money Becomes a Resource for SSI

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Learn which assets are counted as Resources for SSI limits, what time of the month income its calculated, and options parents have to provide extra money to adult disabled children.

Dear Disability Advisor,

My adult disabled son receives both SSDI and SSI. I understand that the money he has been receiving is now paid directly to the responsible parties of the board and care where he lives.These people are now the payee, replacing my son as payee. I assume the recipient of these funds receives $1100 to $1200 — enough to cover the rent and provide my son a small amount of cash. Can my son have a checking account in the amount of $1500 without any penalty? Or is the $1500 added to the $1200 (rent benefit) which totals $2700.00 (exceeding the SSI $2,000 asset limit). Or is it a matter of not accumulating more than $2,000 in assets and as long as the account amount stays under the $2,000 limit, there should be no penalty.

Sincerely, Eleanor

Dear Eleanor,

First, I suggest that your son and you ask the care facility for a clarification of how much of your son’s benefits goes to room and board and how much is allowed for personal expenses. The latter is often in the range of $30 or so.

Resources for determination of Supplemental Security Income (SSI) eligibility are counted on the first of the month. Any money on hand at the end of the month that is carried over to the next month counts toward the $2,000 limit, regardless of where it is stored. If there is a concern about an accumulation of excess resources, a second account can be set up as a burial account. As the name indicates, the money can only be used for your son’s burial. Up to $1,500 can be saved in a burial account and not count toward the $2,000 resource limit. If your son has a burial policy that is excluded, the burial policy and burial account together cannot exceed $1,500. He can, however, own a burial site in addition to the $1,500 in burial funds.)

The Disability Advisor

Excluded Burial Funds and When Money Becomes a Resource for SSI
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