A claimant who applied for SSI in 1983 owned two adjoining plots of land. On one plot (Lot 5) was the house he lived in, and on the other plot (Lot 6) was a bungalow. When the case went to hearing, the administrative law judge ruled that Lot 6 was a countable (non-exempt) asset, the value of which disqualified the claimant from receiving SSI benefits. The ALJ furthered ruled that when claimant transferred Lot 6 to his brother, that he was ineligible for SSI for 24 months from the date of the transfer, because he had received no compensation from his brother.
The Appeals Council disagreed. The regulations provide that a person’s home is not a countable resource. This exclusion also applies to any land that appertains to the home and any buildings on that land. To “appertain” to the home, the land must adjoin the plot on which the home is located and must not be separated by any intervening land which is owned by others. It does not matter if the adjoining plots of land were acquired by separate deeds, or if they were purchased at different times, or if they are assessed and taxed differently. Therefore, the Appeals Council held, Lot 6 was not a countable resource.
There was a regulation stating that a person who gives away a non-exempt resource for the purpose of establishing SSI eligibility shall be charged with the difference between the fair market value of the resource and the amount of compensation received for 24 months from the date of the transfer.
However, this regulation did not apply to the instant case because the property at issue was not a countable resource.
See Social Security Ruling (SSR) 89-3a.
This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.