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FAQs

How does Resources apply to Benefits Planning Assistance and Outreach (BPAO) activities?

Remember that determining resources and resource exclusions is a very complex and specific process. Although you should be aware that these exclusions exist, it is always best to remind SSI recipients that the SSI Claims Representative is the best source of information about whether a resource is countable. Benefit Specialists have an ethical responsibility to tell clients to inform the SSA about resources as soon as possible. Timely reporting is essential because of the risk of overpayment. Some resources must be set-aside in special ways, or must be designated by the SSA as excluded resources ahead of time, or they will count against the individual’s resource limit. This is especially true of burial funds, and Plans for Achieving Self-Support. In all cases, the best practice is to tell the recipient to report right away, and let the SSA decide what counts. It is important for Benefits Specialist to know:

Consideration of Resources must be integrated into all benefits analysis and advisement. In all cases, the best practice is to tell the recipient to report right away, and let the SSA decide what counts.

For Example:
When someone receives conditional benefits, what happens if they can’t sell the property?

When excess resources in the form of real property cannot be sold for certain reasons (undue hardship or unsuccessful reasonable efforts to sell), the owner can receive regular SSI benefits as long as they keep trying to sell the property. When they do sell the property, they only have to pay back the conditional benefits received
Do Claims Representatives make home visits to see what people have?
The SSA asks SSI recipients about their possessions during periodic reviews. They generally don’t go to people’s homes however, you should be aware that SSA has computer matches with IRS and other agencies that can tell them about things that recipients receive or own. Not telling SSA about resources could result in a monetary penalty.
Is there any exclusion for jewelry?
There is a general exclusion of up to $2,000 for an individual’s household goods and personal effects. In addition to that $2,000 exclusion, one engagement ring and wedding ring are excluded for each individual, regardless of value. Other jewelry would be counted against the $2,000 general exclusion.
Can a person have a burial fund if they have irrevocably assigned an insurance policy to a funeral provider?
The cash value of irrevocably assigned funds or policies counts against the $1,500 burial fund exclusion, since the insurance will pay for the funeral.

Do all life insurance policies have potential cash value?

Policies with a cash surrender value can be a resource for SSI purposes. If the individual has a term life policy with no cash surrender value, it is not a resource for SSI purposes. However, if the policy has a CSV, it is a resource for SSI unless the policy is excluded. (NOTE: Many term policies now have cash surrender values. You can not make a general statement that they are not resources.)
What happens if a person receives a dividend from a life insurance policy?
Dividends from life insurance, even excluded policies, count as income when received and resources if the person still has them the next month. One exception is if it is irrevocably assigned to a funeral provider for burial costs. In that case, the funeral provider owns the policy, and all income resulting from the policy.
If a person has a life insurance policy that has value, but has borrowed against the policy, what part of the value does the SSA consider to be a resource? Borrowing against the equity of a life insurance policy reduces its cash surrender value. The SSA only uses as a resource what the person could get if they surrendered the policy to the life insurance company. Debt against the policy would be subtracted before the person was paid. Only what is left counts.
If someone receives SSI, and the person’s spouse does not, does the spouse’s retirement account affect the SSI recipient’s eligibility for SSI? Pension funds held by an ineligible spouse, or in the case of a child, the ineligible parent or parent’s spouse are excluded from resources for deeming purposes.
How much of a person’s retirement fund is counted as a resource? The value of a retirement fund is the amount an individual can currently withdraw. If a penalty for early withdrawal exists, then the fund’s value is the amount available to the individual after penalty deduction.
What happens if a person doesn’t know that she/he has a potential resource? If individuals don’t know they own something, it is not considered a resource until they become aware of its existence. In the month the individual finds out, the item or money is examined under the income rules. For months after the month of discovery, the previously unknown asset is treated as a resource.
What happens when a previously unavailable retirement fund becomes available to the eligible individual (for example, a person becomes vested in a previously excluded retirement fund)? Vesting occurs when a person gains ownership of the money in a retirement fund. A previously unavailable retirement fund is not income to its recipient when the funds become available. The fund is subject to be counted as a resource in the month following the month in which it becomes available.
If an SSI recipient has invalidly transferred resources for less than fair market value, will it affect his or her their Medicaid? SSA is required to notify state Medicaid agencies about transfer of resources by individuals filing for or receiving SSI. For transfers less than fair market value, Medicaid may not pay for certain health care costs including nursing home or home and community based services for up to 36 months from the date of the transfer.
If a person has a life insurance policy that has value, but has borrowed against the policy, what part of the value does the SSA consider to be a resource? Borrowing against the equity of a life insurance policy reduces its cash surrender value. Thus, the SSA only uses as a resource what the person could get if they surrendered the policy to the life insurance company. Debt against the policy would be subtracted before the person was paid, thus only what is left counts.

POMS Resources:

FAQ Disclaimer: The VCU-BARC FAQ Pages are general information provided as a public service. The contents do not necessarily represent the policy, interpretations or opinion of the Social Security Administration (SSA). The information contained here is intended to inform readers of issues that may affect Social Security and/or other public assistance benefits. Because individual circumstances differ, the reader should not rely on any information here as being specifically applicable to an individual's situation.