Can You Buy a House for Someone on Disability Without Hurting Their Benefits?

When you want to help a family member who receives disability benefits, you need to be careful. One wrong move could accidentally take away their health insurance or monthly payments.

A 75-year-old woman wrote to financial advisors asking if she could buy a house for her niece without causing problems. Her niece is in her 50s, receives disability payments, and has health insurance through the government. The niece wants to move to a better home but can't get approved for a loan (money borrowed from a bank to buy a house).

Here's what matters most: There are two different government programs, and which one the niece has makes all the difference:

• Medicare with SSDI (disability insurance based on work history): If she has this, buying her a house won't affect her benefits • Medicaid with SSI (welfare-based disability): If she has this, receiving money or a house could disqualify her from benefits

People on Medicaid can only have $2,000 in assets (things they own like money or property). Getting a gift of cash or a house could push them over this limit and cause them to lose their health insurance.

Safe ways to help someone on disability: • Pay their bills directly to companies instead of giving them money • Set up a special trust (a legal arrangement that protects money) • If they have Medicare/SSDI, you can freely give them money or property

The aunt should talk to a lawyer who understands disability rules before making any decisions. The wrong choice could leave her niece without health insurance or monthly disability payments.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/my-niece-is-on-social-security-disability-insurance-will-she-lose-her-health-insurance-if-i-buy-her-a-house-5214d100?mod=mw_rss_topstories