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Mother's unexpected boon a threat to SSI (Government & Administrative Law)

Tue, 21 Mar 2006 11:11:00 GMT
Tags: administrative, back, bipolar, boon, disks, disorder, government, hawaiibri, herniated, law, mother, mothers, quickly, ssi, state, threat, treated, unexpected

What is the name of your state? Hawaii
I need information quickly. My mother is being treated for a bipolar disorder, herniated disks in her back, emphysema, etc. She is nearly 70 is unable to work. My mother lost all of her money and was homeless for a brief period. If she were to lose SSI and subsequently Medicare, she would not be able to afford rent or her medications.
This month, a life insurance company she invested in 30 years ago finally reported her earnings to the IRS - $8000. This value exceeds the $2000 she is allowed to have in assets if she wants to stay in the SSI program. It took her one year to get onto the program because of the paperwork schedule, and $8000 is not enough for her to pay for rent and medications for a year. Her state-sponsored attorney is advising her to spend all of the money in 2 weeks. This will surely satisfy the "manic" side of her bipolar disorder.
However, is there a way to spend the money wisely and in a timely manner without being removed from the SSI program? Would the SSI program accept a trust fund that doles out the money in increments? Or could she purchase traveler's checks and say that she spent the money? Please give us ideas, especially if you know from experience. Thanks!What is the name of your state?

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  • Tue, 21 Mar 2006 19:23:00 GMT(1)
  • Please clarify if she has $8 value in the life insurance policy or if she earned $8 in interest on an annuity or such.
    If the total cash value of the policy is $8 , then she must spend down to the allowed amount of $2 . I believe she can buy land for burial and pay for her burial or cremation expenses (not the same as paying for a funeral).
    The best advice I can give on how to spend down the money is for her to get any dental care she needs, any vision wear she needs, etc. That should about take care of any balance.
    If she knew she had this money/cash value and she did not list the policy as having a cash value or a potential cash value, then she may be disqualified from receiving SSI for a longer period of time that is required to spend down to $2 . You can search your state's 'laws' on this topic and find out what can/will happen to SSI if she knowingly and willingly provided false information about her financial worth.
    SSDI will not be affected by cash value of a life insurance policy.
    Best wishes,
    EC
  • Thu, 23 Mar 2006 10:58:00 GMT(2)
  • The amount I cited is the cash value of the policy.
    She is bipolar, and lost all of her money and became homeless due to her reckless spending style. She always threw out the most important receipts and documents by accident, and completely forgot about the insurance plan. In fact, when she first heard of the policy, she thought it was a case of identity theft! So she has an argument for SSI that she did not know about the policy when she entered the program.
    Since I posted to this site, she has decided to spend all of the money in a more practical way than originally planned.
    It is unfortunate, however, that she is not allowed to keep this amount for emergencies or to give it someone else for safekeeping.
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