Social Security Early Eligibility Qualification When Transferring All Assets Into Trust (SSI Resource Lookback Period)
Giving away or selling assets cheaply to qualify for disability early can make one ineligible for SSI. Doing this will have the agency penalize anyone by making them ineligible for SSI for up to 36 months (look back period). To qualify for SSI early, one can have only $2,000 in assets or $3,000 for a couple (not counting a home and car toward the limit.) One can be penalized for giving away property or assets for less than fair-market value, which includes: cars, houses, money in bank accounts.
To evaluate whether one made a problematic transfer, Social Security will calculate what the "market value" of the resource was at the time of the transfer and what compensation was received. Market value is what the resource was worth to an outsider (not a friend or relative) at the time of transfer. Social Security will consider all compensation, including intangible things like relatives promising to take care of another for a period of time in exchange for giving them the resource. Social Security has formulas for figuring out the cash value of things that do not generally have such a value.
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