Disability and selling home.

[AJ520]

I don’t know if you’d have a referral to help to help my coworker figure this out. My coworker’s mom owns a house (that she can’t afford). She’s currently on long term disability because she has a kidney disease and they are wondering if she sells the house would she have to pay back the government/result in reducing her disability checks.

 

[MBAustin]

I'm not aware of any such restrictions on Social Security disability if that's what she has. DH retired due to disability at age 57 and qualified for Social Security disability about a year later. I was still working with a significant income as well. When he turned 65, they just converted his SS from disability to retirement with no change in the $$ amount I believe.

 

[Sarah S]

If she really has ssdi as MBAustin says no.

If she has ssi then at minimum once the house is sold she will almost certainly lose ssi until that amount is spent down ( unless she is purchasing a cheaper residence so the money doesn’t hit her bank account). If you sell a non primary residence property while on ssi you do have to pay back benefits already received - not sure about primary residence though.

 

[MBAustin]

I just saw an article that pointed out that people who are on Medicaid due to disability are subject to some restrictions. Doesn't have enough detail to make it useful, though.

As Sarah pointed out, there is a big difference between SSDI and SSI.

 

[Sunset]

OP - Have this person join and ask the questions as I'm sure there are followup questions/clarifications. Knowing the exact source of disability $$ would be helpful.

It's possible this would be one of the rare times a reverse mortgage might be useful, even though they are expensive and she will probably lose the house in the end.

Another option, might be for a loving child, to "buy" the house, assume the mortgage and pay $X dollars per year to parent. Of course if Medicaid is already involved this probably won't work, also lots of risks in this.

 

[ivinsfan]

OP - Have this person join and ask the questions as I'm sure there are followup questions/clarifications. Knowing the exact source of disability $$ would be helpful.

It's possible this would be one of the rare times a reverse mortgage might be useful, even though they are expensive and she will probably lose the house in the end.

Another option, might be for a loving child, to "buy" the house, assume the mortgage and pay $X dollars per year to parent. Of course if Medicaid is already involved this probably won't work, also lots of risks in this.

Actually I would tell the OP to tell his friend..to get a consult with an eldercare attorney and stay out of it completely.