Selling your home can pose a significant question for those receiving Supplemental Security Income (SSI): will I lose my benefits? SSI is designed for individuals with limited financial resources, allowing for assets of no more than $2,000 for singles and $3,000 for couples. Understanding how selling a home impacts these limits is crucial.
When a homeowner sells their property, the proceeds from the sale can temporarily disqualify them from receiving SSI benefits. If the net proceeds push their assets above the allowed threshold, their benefits may be suspended. However, there is a three-month window during which the seller can reinvest the funds into a new home without losing their eligibility, provided they remain under the asset limits.
Moreover, after selling, individuals have 12 months to "spend down" excess funds to qualify for SSI again. Spending must be documented, and simply giving money away isn’t permitted. It's recommended that individuals consult with experts to navigate these complex regulations effectively.
For more information on SSI and to ensure compliance with laws, you can explore resources from reputable sites like the Social Security Administration here and the National Disability Rights Network here.
