There are SSI penalties for purchases of a home for an SSI beneficiary:
Effect on SSI on SNT Outright Home Purchase;
FROM the SNT Symposium 2019:
“If purchased outright by the beneficiary as his principal resifence, then there is a 1/3 penalty in the month of purchase (loss of $277/month of SSI in 2019)
No effect on benefits as long as principal residence
• 20 CFR §§416.1210(a), 416.1212
If purchased by the SNT: No effect on benefits as SNT is exempt
SSA considers beneficiary to have “equitable ownership under a trust”
• SI 01120.200(F)(1),
1/3 ISM reduction ONLY in month of purchase
Beneficiary can live rent free without reduction or penalty, SI 01120.200(F)(2)”
