If an SSI recipient gifts money, he could lose up to three years of SSI eligibility. In order to calculate the period of ineligibility, the amount transferred is divided by the transferor’s monthly SSI benefit (including state supplement), rounding the result up or down to the nearest whole number.
For example, Ekta, who receives SSI benefits ($757.10/month in 2017), receives $30,000 from her grandfather at his death. She gives her entire inheritance to her sister.
The Social Security Administration (SSA) divides the transferred amount ($30,000) by Ekta's SSI benefit ($757.10) to determine the ineligibility period (39.62 or, rounded up, 40 months). Ekta is ineligible for SSI for just over 3 years.
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