My brother is on ssdi and has only worked 5 years of his life. Hes telling me that when our parents die Im going to have to take credit for ...

Question

My brother is on ssdi and has only worked 5 years of his life. Hes telling me that when our parents die Im going to have to take credit for all the money but still give him his share. Something about he would lose his ssdi if I dont say all the money is mine? Is this true?

Answer

Many people are confused about the kind of SS benefit they receive. SSDI & SSI are different.

If your brother is getting SSDI (Social Security Disability Insurance), he can have other assets and money. So he can take his share of the estate.

If, however, he gets SSI (Supplemental Security Income), he is NOT allowed to have other 'resources' (cash and assets, with a few exceptions) So whether he gets 'his share' from the estate or from you, it is still counted as a resource. And his SSI will be diminished or stopped.

If you give him money and he does not tell the SSA and SSA finds out, it will declare an overpayment and demand a refund of the SSI money. It may investigate him for fraud because he has a legal obligation to tell the SSA about any and all resources. If you pay his bills instead of giving him money directly - it is still a countable resource.

You need to talk to an estate planning attorney ASAP to learn how his 'share' of the estate can be protected and to what extent.