A common concern among Michigan residents considering an SSI application is whether owning a home or a car will disqualify them from receiving benefits. The rules around SSI’s asset limits are more nuanced than many people expect, and in many cases, owning a home or vehicle does not prevent you from qualifying. SSI has strict resource limits — generally $2,000 for an individual and $3,000 for a couple.
However, the SSA excludes certain assets from this calculation entirely. Your primary residence is excluded. If you own and live in a home, regardless of its value, it does not count toward the SSI resource limit. This exclusion applies to the land the home sits on as well. A second property or rental property, however, would typically count as a resource. One vehicle used for transportation is also generally excluded.
The SSA does not count one car toward your countable resources, regardless of its value, as long as it’s used for transportation by you or a household member. Additional vehicles may count depending on their use and value. Other excluded resources include household goods and personal effects, life insurance policies with a face value under $1,500, burial funds set aside up to certain limits, and ABLE accounts for eligible individuals with disabilities.
What does count toward the limit includes cash, bank account balances, stocks, bonds, and additional real property. If your countable resources exceed the threshold, you won’t qualify for SSI until they fall below it. Understanding what counts and what doesn’t is important before applying or spending down assets.
Our team at Grech Law Firm Attorney & Counselor helps Michigan SSI applicants navigate these rules accurately. Contact us for a free consultation.
