Let`s say you live alone and your only income is SSI. Your brother pays your rent of $800. We count this payment as benefits in kind and maintenance. Although the rent is $800, we limit the amount of $800 we count by using a PMV (Assumed Maximum Value) rule. The VDP is equal to 1/3 of the federal benefit rate plus $20. Here are the steps we use to determine the amount of the SSI benefit. If your child is currently receiving SSI with a 1/3 discount, you can always contact Social Security and let them know that circumstances have changed and you are now charging your child`s rent. Example of a sublet: Jennifer`s girlfriend rents an apartment. When Jennifer becomes disabled, her friend agrees to let her live there as long as Jennifer promises to pay her half the rent and utilities. Jennifer and her friend sign a loan agreement.
Once she has been approved for disability, Jennifer reimburses her friend. ”I pointed out that my daughter owes me an additional 30 months` rent from our loan agreement. The employee immediately said she would request immediate payment of the entire payment arrears! If the person receives both the full cost of food and accommodation from the third party, the SSI benefits to which he or she would otherwise be entitled will be reduced by one third. In cases where assistance is provided for food or accommodation or is not fully provided for both, the ISS reduction is limited to one-third of the maximum eligible benefit plus $20 (in 2017, a total of approximately $265 for one person). However, if a person receiving an ISS pays reasonable rent to live with relatives in a complete dwelling that is considered separate from the others, a separate household has been established and the ISM is not applicable. Even if you live with other people, paying a proportionate amount that covers both food and housing will avoid a reduction in the ISS. Ideally, the contract should be signed by both parties before the start of the rental loan. If your agreement has not been signed before, it may or may not be accepted.
🌷 A rental loan agreement signed after the person has applied for SSI can be accepted. However, it is possible that the agreement only covers the period following signature. 🌸 It is common for people with disabilities to live with friends or family while waiting for SSI approval. Sometimes people make an agreement that even if they have no income now, they will reimburse the rent or utilities to their friends or family as soon as they receive their arrears. The lawyers at Paul Baker Law Office can help you with your Kentucky rental loan agreement. Every situation is unique, and at Paul Baker Law Office, we understand that your SSI benefits are very important to you. There are 2 different ways (”Fair Share” or ”Rent as a Tenant”) to get the full amount of SSI benefits, and you need to understand both approaches. In my experience, in most situations, the amount of the ”fair share” exceeds the SSI payment and therefore will not work and the ”rental approach” is the preferred method. 🌷 When looking at ”benefits in kind,” social security looks at three areas: rent, utilities, and food. Leases should include utilities, or there should be a separate agreement for utilities.
SSI has a policy that allows an applicant to enter into a lease loan agreement to owe the rent and repay it at a later date. Most often, these types of agreements are used by someone who rents a room and then, upon approval, reimburses the rent for their arrears. 🌸 First, your retroactive payment can be reduced. This is because SSI is always discounted for each month you receive free rent or utilities, unless you have documents indicating the amount of rent due for each of those months. If a person gets free rent or utilities or groceries or groceries on SSI (or apply), their SSI check will be discounted. Social security policies call this ”benefits and maintenance in kind”. Salary arrears and future cheques can be reduced by up to a third. For example, if an additional payment would be $9,000, but the person received free rent, the payment arrears may be $6,000 instead. 🌷 Some states recognize oral treaties, so if you have not agreed in advance and signed the agreement, it is possible that it will still be accepted. Or it`s possible that if it`s not accepted, you can research contract law in your state and appeal the decision. As long as the person does not donate the ABLE funds or keep the funds withdrawn from the ABLE account on a monthly basis in their own personal bank account, the use of the funds will not affect SSI eligibility. Funds from ABLE accounts can be used to pay for accommodation, food, transportation, clothing, utilities, cable subscriptions, and many other basics without compromising SSI.
ABLE funds used for certain housing costs may result in an IRS penalty, but they are usually very low. A major advantage of an ABLE account is that it can be funded by family members and the person can then use the funds to pay for rent and food without having an ISM SSI discount as described above. 🌷 Mrs. Norton lives with her father. When she speaks to a Social Security worker, ”she says she feels personally responsible for her father`s reimbursement, but her father does not expect to be reimbursed.” The loan agreement is rejected. Leases can be entered into directly with the landlord, or it can be a sublet. ”During the social security financial interview, the employee told her that because of the agreement, she would receive the full amount of SSI for the arrears. The employee said that the payment arrears would be $2500 in the first month, $2500 in 6 months and the balance would be spent in one year! To calculate an adult child`s share of housing and food, all household expenses for food, rent and utilities must be added together and divided by the number of people living in the household. For example, an adult ISS beneficiary lives with both parents and 3 siblings, and monthly household expenses total $2,400.00. The amount of accommodation and food charged to the ISS recipient would be $400.00 ($2,400.00 divided by 6 people in the house).
If possible, the monthly room and catering agreement should be recalled by a written document between the parents and the adult child stating that the adult child acknowledges his or her obligation to pay for accommodation and meals on a monthly basis in exchange for the provision of accommodation and meals by the parents. If you apply for or receive SSI, you may need to create a lease loan agreement for this purpose. While the issue of ”fair share” and ”rent” has been discussed, you need to remember that countable resources or assets generally cannot be worth more than $2,000 for a person to get an ISS. Resources are money and things that the person owns that can turn into money. Examples of resources include bank accounts, real estate, stocks, and bonds. 🌷 Many people with disabilities choose to keep their food separate from other household members because it allows them to qualify for food stamps themselves. Note to parents: If your child is over the age of 21, they can apply for their own food stamp account, even if they live with you. What is a food stamp household? 🌸 Rental loan agreements are sometimes used by adults with disabilities who return to their parents` homes or by children with disabilities when they reach the age of 18. If the disability application process takes several years (which sometimes it does), a rental loan agreement can help create clear documentation of all funds due for that period. If a family allows their adult child, who is an ISS beneficiary, to continue to live in their home for free, this is considered in-kind income, which typically reduces an ISS beneficiary`s monthly cash benefit by one-third of the federal benefit rate ($733.00 in 2015). Currently, this would result in a reduction of approximately $244.00 per month. In order to avoid an unnecessary reduction in a person`s monthly ESS benefit and to ensure that a person receives the maximum monthly benefit, their accommodation and meals should be charged.
live in your own house, apartment or mobile home and someone else pays for some or all of your food, rent, mortgage or other things like electricity and fuel oil; Situations where people sometimes create rental loan contracts: 🌷 According to Social Security guidelines: Loan agreements must be feasible and unconditional, and include a specific plan to repay the money. To avoid ISM, families should enter into a written lease that covers the proportionate share of the operating costs of the household and, where applicable, food. The agreement should include the names of the tenant and landlord, the rental address, and the amount, purpose and frequency of payment. Upon request, the tenant must be able to present rental receipts. Families must also document the rents in effect in the area. An important condition is that the individual pays the fair market value for what is received. To sign a lease in Kentucky, both parties must sign a statement confirming the details of the rent: the amount of rent due for each month, the amount charged for utilities, interest due, and any other information. Contract law varies from state to state, so if there is no agreement signed before the loan starts, SSA may take into account the laws of your state. In some states, they may accept an agreement that was oral and that both people later confirmed was made orally. Before the start of the rental loan agreement, a verbal agreement should be concluded. 🌷 A lease agreement signed before the person applies for SSI covers the entire repayment period. Whether it is signed a day before or a year before makes no difference, as the SSI backlog never starts before the application date.
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