Social Security SSI & How Living Arrangements Effect on Monthly Benefits

Summary:

• When an individual with a disability reaches 18 years old, they are viewed financially separate from their parents.
• If they don’t have an income and are limited by their disability, they will likely qualify to get Social Security “Supplemental Security Income” (SSI).
  • SSI is a poverty-alleviation benefit – it is based on keeping a person out of poverty.
  • SSI is paired with Medicaid benefits.
  • This is different from Social Security Disability Income (SSDI) someone receives when they become disabled after working for several years.
    • Social Security Disability differences from SSI.
      1. SSDI is based the Quarters you worked at a job that paid into the SS system. The payment amount is based on your income-earning level.
      2. SSDI is paired with Medicare benefits.

Specifics:
When someone applies for SSI at 18 yrs old, 2 things are evaluated:

1. Disability
2. Income & assets

Since the parents have been providing free housing for the 1st 18 years to this individual, and since prior to getting the SSI payment they do not have an income… The parents become a resource.
*** The Social Security evaluation ASSUMES that the person with the disability only needs 2/3 of their SSI payment.***

So for the 1st 2-3 months, the person with the disability will only get $650 of the $943 maximum SSI benefit.

Solution:
After 2-3 months, so the individual can build up funds, the family needs to create a rental agreement to charge the individual with the disability for their portion of the housing.

• A simple way to do this is to write a letter stating a rent price for a room in their home, including the utilities.
• Have both people sign this letter and turn it in to Social Security.

Read official Social Security information on Living Arrangements.