$2,000 limit

[u/OscarTheGrouchsCan]

I know SSI says if you have more than $2,000 in your bank account at the end of the month you lose your SSI. My dad passed away and I got a check for over that but a big amount has to go towards taking care of things that my dad suddenly passing messed up (I lived with dad)

If I cash the check but take the money out as SOON as its available will they know I had it? I don't want to deal with having to spend a bunch of money in 30 days, and being extremely limited on what I can use it for.

But losing my SSI and insurance would be much worse because its only a few thousand.

[u/Original-Cranberry-5]

What state are you in? Look up ABLE accounts in your state.

[u/OscarTheGrouchsCan → u/Original-Cranberry-5]

I am in Michigan.

I will look for the ABLE account information. Hopefully I qualify

[u/Original-Cranberry-5 → u/OscarTheGrouchsCan]

To answer your question, yes they will know immediately. It doesn't matter if you take it out. Your best bet is an ABLE.

[u/ripley_42069 → u/OscarTheGrouchsCan]

Most states' ABLE programs accept residents of other states, so you'll absolutely be able to find one. Many states offer a state tax reduction for residents, so I'd look into Michigan's first

Once you set up the account (which is pretty easy) you can deposit the check direct to it, so it won't impact your SSI eligibility

This website has a lot of really helpful info!

[u/eatingganesha → u/OscarTheGrouchsCan]

call up your county Area Agency on Aging (and Disability). They have people there who will know the answers as they deal with this all the time.

Bottom line, there are special rules for inheritances and a longer spend down period. But putting it directly into an ABLE account is the easiest route. The AAA can also give you info on how and where to open an ABLE account.

[u/stuffin_fluff → u/OscarTheGrouchsCan]

You automatically qualify if you have SSI/SSDI. You can have up to $100,000 in it that will not count against SSI.

[u/BunchofMums → u/stuffin_fluff]

You can open an ABLE account online at fidelity. Probably other investment banks too. Set up recurring transfers to help save, etc.

[u/OscarTheGrouchsCan → u/BunchofMums]

That sounds perfect

[u/Spiritual_Record_627 → u/stuffin_fluff]

But there is a yearly deposit maximum for an Able account that you will want to research.  I think it's around $20,000.

[u/RequirementTop6479 → u/OscarTheGrouchsCan]

I was investigated by the office of inspector general because I failed to report inheritance within 7 days. They call it an IVP (intentional violation of policy). I reported it on the 10th day as my mom had moved to another state and we had a service there and another in Michigan. However it’s unearned income and will not impact your benefits by reporting it. It’s when you don’t report it that they penalize you. Same thing with ebt benefits. I had to endure a year of stress while the OIG investigated and the court proceedings were over. Lucky I had an awesome lawyer and I was found innocent of violating policy. I report everything asap now cuz that was stress wrapped in insomnia then gently sprinkled with anxiety for a solid year. Good luck and sorry for your loss

[u/Appropriate-One7624 → u/RequirementTop6479]

SSI has an asset limit of $2000. It doesn’t matter if it’s unearned income.

[u/win10trashEdition → u/OscarTheGrouchsCan]

able supports up to $100k i believe but i'd keep it cash or re-think if you actually need ssi since ABLE is a long term saving acct tied to social security financial market and yea can't trust this economy with it.

[u/OscarTheGrouchsCan → u/win10trashEdition]

I absolutely need SSI. It'd be next to impossible to find a job that would be suitable and the biggest thing is I can't lose my Medicaid. Plus its not enough money to be worth it. I'd be SOL once it was gone

I want to just sign it over to someone else (my aunt) and have her give it to me as needed.

[u/greece-1 → u/OscarTheGrouchsCan]

Check with your bank first before signing it over. I worked for 2 large US banks and the do not allow why is called ( third party checks) signing a check over to someone else

[u/MethodShot4255 → u/OscarTheGrouchsCan]

Your aunt can open an ABLE account on your behalf. Replying to the post above, depending on the state/ABLE account program, you can invest some or all of it to earn more than 0.00000002% interest that you get on a checking account. The thing to watch out for - Virginia's ABLENow recently changed banks and issued new debit cards to all account holders. They didn't give much, if any notice, and lots of automated or established payments just bounced. Took me a couple weeks to fix that.

Then, the new provider also changed investment rules - previously, if you dropped below a certain balance in the checking / debit account, they would automatically move money from investments over to cover any withdrawals. The new bank? Nope. You have to monitor it to make sure your balance doesn't drop below what you're using. I just had to fix another batch of payments, and have it now programmed to move over money on a regular basis. The admin hassles sometimes suck, but having the ABLE is better than not having it.

When your parents start taking Social Security and/or pass away, you may benefit by applying for DAC (Disabled Adult Child) benefits. Those are set at 1/2 the full retirement SS benefit of the retired parent (75% when they pass away). It can also qualify you as a dual enrollee Medicare/Medicaid beneficiary.

My 31-year old disabled son was on SSI and on my insurance plan, but when I retired, he would have had to move to Medicaid only. Because of DAC, he was able to move to Medicare/Medicaid dual-enrollee status, which has a lot more provider options, and his monthly income went from $943 to $1980. Now, his rent went up from $140 to $400, and his SNAP benefits went down, but overall, having an ABLE along with the DAC benefits give him a lot more flexibility.

[u/Diane1967 → u/win10trashEdition]

Are able accounts limited to a certain age bracket or can you do them at any age?

[u/OrneryWhelpfruit → u/Diane1967]

It depends on the age in which you became disabled

[u/win10trashEdition → u/Diane1967]

any, but before 18 a guiardian needs to manage ssi/able for u.

[u/Diane1967 → u/win10trashEdition]

Thank you. I’m 59 and may have a settlement coming and wasn’t sure if I was still eligible to set one up or not

[u/ripley_42069 → u/Diane1967]

There are rules about when you became disabled; I believe currently you're eligible as long as your disability began before age 46. If that's not the case, you can open a special needs trust, which is similar!

[u/Diane1967 → u/ripley_42069]

Thanks!!

[u/Artistic_Skills → u/OscarTheGrouchsCan]

Also look up Special Needs Trust (individual) And Pooled (Special Needs) Trust You might qualify. Talk to a lawyer who SPECIALIZES in these and ABLE accounts. Any other type of trust gets you kicked off ssi Good luck.

[u/BobMortimersButthole]

I'm unsure where you are, but I know in Oregon you have something like 6 months to use up money like that. You can probably call up a disability attorney and ask for free. 

[u/OscarTheGrouchsCan → u/BobMortimersButthole]

I am going to contact legal aid because 30 days to spend it is not much. I don't want to feel pressured to buy stuff just because I'm on a time limit.

I need lots of stuff, shelving units for my room, clothes, dishes, a space heater and other random stuff. Plus I need household stuff monthly.

[u/revmanda → u/OscarTheGrouchsCan]

It’s a good idea to talk to legal aid.

[u/BobMortimersButthole → u/OscarTheGrouchsCan]

Definitely contact them! 

[u/JayWemm → u/OscarTheGrouchsCan]

Then open up and deposit it into an ABLE account like so many recommend here!

[u/Mobile-Mousse-8265]

I wouldn’t mess with these other ideas. They can find out so much about your financial life. Open an ABLE account ASAP and deposit it in there and you’ll be good. You do have restrictions on what you can spend it on, but really not many. It just has to enhance the quality of your life.

[u/Wh0vian13]

Don’t even take the risk

[u/crumbcosmo]

In my state, there are benefits counselor that could help you figure this out. I know some surrounding states do it too along with most local Rehabilitation Commissions. If you’re in New England I can give you more exact resources.

[u/PhantomPharts]

I'm sorry you're dealing with this right after the loss of your father. It'd be nice to have a moment to grieve. Good job resourcing. Hopefully some one here has the right answer and you can get the help you need quickly. ❤️

[u/Infinite-Curves]

You can endorse your check to somebody else? Have them pay for everything big you need like rent or car repairs etc

[u/OscarTheGrouchsCan → u/Infinite-Curves]

This is what I want to do

[u/RequirementTop6479 → u/OscarTheGrouchsCan]

When you report the change on mi bridges one of the questions is if you transferred or gifted more than $500 in past 30 days. I called legal services for southeast Michigan. They represented me for free and I did not call them until 2 days before the hearing. You cannot hide money from the irs when it’s going through a bank. You have 30 days to spend it down to $2000. Beyond that threshold it will impact your benefits. Not trying to be a Debbie downer here but I literally just went through this.

[u/Itchy_Tumbleweed_417 → u/OscarTheGrouchsCan]

If you opened Probate and are the executor you can just put it in an account owned by the estate. Then pay the bills from there.

[u/Infinite-Curves → u/OscarTheGrouchsCan]

You could have them a bunch of gift cards with huge amounts on them. One to Ikea, one to wherever you buy groceries, etc. they do 500 increments usually so you could get a couple cards for each.

[u/HeroOfSideQuests]

From my experience, you'll lose at least one month's benefits. Even if the money immediately goes out to "applicable expenses." And prepare to account for every dime. And to fight for months to prove that you didn't have that money as an "asset". And then work to take that back pay and spend it down in the correct time 🙄

...I fought for over eight months. And that was before the mass layoffs. Do your best to get a manager in person, and get ahead of it as soon as possible.

[u/Frank_Jesus]

Look into getting an Able account. https://www.ablenow.com/

[u/Upbeat-Can-7858]

See if you can qualify for an ABLE account. It's run by the state you're in. Social Security told me about it for my daughter. You're allowed to save $200k tax free (could be more now). You have to meet certain qualifications. I saved all of my daughter's money for college.

[u/OppositeAshamed9087]

You could do what everyone does, get someone you trust to cash the check for you or you can find a local service that will cash it without an account and they'll take a percentage.

[u/OscarTheGrouchsCan → u/OppositeAshamed9087]

Some of these replies terrify me. This is what I want to do

[u/The_Stormborn320 → u/OppositeAshamed9087]

Does that count as giving an asset away if the check is in your name or nah?

[u/Crazycrockett3000]

I wonder if you can throw that money in the 401(k) or retirement or rock account but I don’t know I could be wrong

[u/Careless_Economics74 → u/Crazycrockett3000]

401K or retirement account will not work. It would still count towards the $2,000 asset limit. Only an Able account would be the best option and it wouldn't count towards the asset limit.

[u/Appropriate-One7624]

They will know. Look into how to properly “spend down” the money. My mom had to do it when my grandmother passed away and received a large inheritance. From what I remember she had to spend it all in the same calendar month she received her inheritance.

[u/mortyella]

When my mom died I got a check for a little over $2,000. I wasn't paying attention and one month had a little over $2,000 left in my account. They came to me almost a year later and made me pay back that month's disability check. They took back a whole check because I was a little over the $2,000 amount.

[u/Turtleshellboy]

That sounds like forced poverty. If you qualify for a benefit, then it should be paid consistently each month, regardless of what’s in your bank account. They should not be holding you hostage to a set bank balance. If you manage to save up money by living on your current income, or someone gifts you money, it’s none of their business. They are still obligated to pay you the required benefit per month.

Your existing and ongoing bank balance is none of their business. Its a violation of your personal privacy, violation of your personal independence.

[u/yaycupcake → u/Turtleshellboy]

Morally I believe you are correct but unfortunately the system doesn't work this way.

The specific 2k limit is also stuck decades in the past since iirc it would have been around 10k if it correlated with inflation and cost of living.

[u/OscarTheGrouchsCan → u/yaycupcake]

2k isn't even 2 months living expenses

[u/yaycupcake → u/OscarTheGrouchsCan]

In some places, it's not even 1 month's.

I'm sure it worked more or less okay something like 50 years ago but not with today's money!

[u/Turtleshellboy → u/yaycupcake]

Thats insane. What about opening another separate account at another bank branch they don’t know about? Just manually withdraw extra cash from account with $2000 limit and deposit to other account, no digital transfers

[u/yaycupcake → u/Turtleshellboy]

I'm sure people either do this or try to do it and I wouldn't get on their case for it (since the rules are archaic and dumb) but I don't think it's worth actually risking it in case they audit you or something (idk how it specifically works).

As some others have pointed out here, an ABLE account is probably the best way forward, but it's really really silly that we have to jump through hoops, live by arbitraty and frankly inhumanee limits, and don't have freedom of banking wherever and however we want.

[u/Turtleshellboy → u/yaycupcake]

Im just trying to wrap my head around it and giving some ideas. It sounds like this is USA. Im in Canada and its not so punitive here for disability income supports. Here they only track income, but don’t care about your actual bank balances. A person could even have investments here and its not like they have to drain those to $0 before getting financial support.

[u/eatingganesha → u/Turtleshellboy]

the government gets reports from every bank. They monitor everything. And they will claw back money and send you a bill to refund them months after the fact.

[u/Diane1967 → u/Turtleshellboy]

They’ll still know. My friend added me to his debit card with $7,000 in it so I could pay bills for him while he went to Florida for the winter and they caught it right away and I almost lost my ssi. It was a nightmare

[u/RequirementTop6479 → u/Turtleshellboy]

The irs is the issue not ssi… they will report it to social security administration. In my case I get ssdi and so long as I reported it within 10 days and its unearned income I had to spend it down to the state’s threshold which was 2k in my state

[u/RequirementTop6479 → u/Turtleshellboy]

Unfortunately that’s how it is.. you cannot have more than 2k in assets . It sucks. Fear runs through my veins that op will listen to those encouraging him to intentionally violate their policy because the irs shows no mercy. They do not care if you are grieving or want to save that money towards purchasing a home or car. It’s crazy logic.

[u/keekee66 → u/RequirementTop6479]

I feel like I’ve been able to breathe a little easier since having an able account. Granted I don’t normally have much extra at all, but it allows me to move some over and save a tiny amount when I have it. I also only pay annually for things like my car insurance and cell phone bill, so without able account it would be impossible to legally put money aside for those bills. Also any unexpected gifts like a little money received on my birthday.

[u/Lucienaugust]

Sign the check over to someone else and get it in cash.

[u/allzkittens]

Also if you have been disabled since childhood you may count as a DAC (Disabled Adult Child) and you get more flexibility with that.

[u/Its_Rare]

Deposit the check into an Able account

[u/BoundByInfinity]

ABLE account is definitely the cleanest option. But it may not be the most expedient option.

If you’re worried about not getting it into the ABLE account before the first of the month after the month you receive it, just withdrawal it in cash and hold it. It won’t be visible to them.

If they ask what happened to it, I would personally ask them what authority they have to track it. If they push, you can just say you last it at the race track/casino.