Mom Asks: Will Buying My Disabled Son a Home Cut His Benefits?

A mother caring for her adult son with special needs faces a tough decision: should she buy him a condo to live in? While it sounds like a loving gesture, it could actually reduce his monthly government benefits by up to $331.

Here's the problem: When someone receives Supplemental Security Income (SSI) - monthly government payments for people with disabilities - they can't own too many assets. If they do, their benefits get cut or stopped entirely.

The key facts: • People on SSI can only have $2,000 in assets (money or property they own) • Getting free or cheap housing counts as "income" to the government • This could reduce benefits by one-third, or about $331 per month • If the son pays full market rent, his benefits stay the same

The solution? A special-needs trust (a legal account that holds money for someone with disabilities). The trust can: • Own the condo instead of the son • Let him live there without counting as his asset • Pay for home repairs and furniture • Protect his benefits while giving him stable housing

The mother has several options, but experts recommend keeping the property in a trust rather than in her son's name. This way, he gets a safe place to live without losing the government support he needs for daily expenses.

For families in similar situations, it's crucial to consult with a lawyer who specializes in disability benefits before making any property purchases.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/i-have-full-guardianship-my-son-has-special-needs-if-i-buy-him-a-condo-will-that-hurt-his-benefits-6f26e904?mod=mw_rss_topstories