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New Rental Assistance Rule May Open Benefits to
More Seniors
The Social
Security Administration (SSA) has published a final rule simplifying
and expanding its rental subsidy program for Supplemental Security Income
(SSI).
Effective
September 30, 2024, the new rule is likely to allow more people to qualify for
SSI. In addition, some current SSI recipients may see an increase in their
monthly benefit amount as a result. The rule change is part of a broader agency
effort to streamline certain aspects of the SSI program.
SSI applicants
and recipients may want to talk to an elder law lawyer about the new
rule if they have questions about how it affects them.
How Do You
Qualify for SSI?
SSI is a
federal public benefits program that provides a modest monthly benefit to
qualifying recipients. It serves older adults across the United States who meet
strict income and resource limits. People with disabilities who have limited
income and resources also may qualify. In most states, to be eligible for SSI,
an individual must have less than $2,000 to their name.
SSI Rental
Assistance Explained
Income affects
more than whether an individual is eligible for SSI benefits. It also has an
impact on the SSI recipient’s benefit amount.
The SSA’s
definition of income includes not only “earned” income from a job and
“unearned” income such as gifted cash, but also what SSA calls “items received
in-kind,” including shelter given to an individual or that someone else pays
for.
A rental
subsidy can result in a lower SSI payment for current recipients. It may also
disqualify someone from receiving SSI because their income is too high.
However, SSI is
now changing how it calculates the rental subsidy amount. The new rule will
expand an exception that previously only applied in seven states but starting
in September 2024 will apply nationwide.
How Rental
Subsidy Is Calculated – The Current Rule
If an
individual pays a monthly required rent charge that equals or exceeds the
current market rental value (CMRV) in their area, a “business arrangement”
exists under SSA rules. This means that the SSA does not see the SSI applicant
or recipient as receiving rental assistance.
SSA regulations
consider a person to be receiving a rental subsidy — a type of unearned income
— if they are paying a monthly rent amount for a property that is less than the
CMRV where they live. This commonly occurs when somebody is living with a family
member who charges them less for rent than what they would pay on the open
market.
For example,
consider an SSI recipient who lives with their sibling, paying a monthly rental
rate of $400. If the CMRV in their area is $800, the amount of rental
assistance would be $400.
However, the
SSA imposes a regulatory cap, called a Presumed Maximum Value (PMV), on the
rental subsidy amount that can be assessed; that amount is $334.33 for 2024.
The SSA also has an unearned income exclusion of $20 per month.
Using the
example above, imagine a landlord accepting $400 per month instead of the CMRV
of $800. The amount that the SSA would count as rental assistance would be
$314.33 ($334.33 PMV minus the $20 general income exclusion amount.
Assuming a
maximum monthly SSI payment of $943 in 2024, and assuming there is no other
countable income, the recipient’s benefit amount would be reduced to $628.67
($943 minus $314.44).
Exception
Following court
cases that challenged the SSA’s rental subsidy rule, exceptions were provided
in seven states — Texas, Connecticut, New York, Vermont, Illinois, Indiana, and
Wisconsin.
In these
states, a “business arrangement” still exists. However, the rental subsidy does
not count as income if the monthly rental rate equals or exceeds the PMV,
instead of the CMRV.
Apply this
exception to the example above: An SSI recipient in Connecticut pays $400 per
month instead of the CMRV of $800 per month. They would not have their rental
subsidy count as income because the $400 payment is more than the $334.44 PMV
for 2024.
The SSA notes
that in the seven excepted states, application of the rental subsidy exception
generally results in a higher SSI payment amount.
New Rule
Applies SSI Rental Subsidy Exception Nationwide
The SSA
announced in April 2024 that the new rule would make the state-specific rental
subsidy exception national policy for SSI applicants and recipients.
According to the SSA, the policy change will increase the
benefit amount for some recipients and allow more people to qualify for SSI
payments. However, it will not affect how much SSA pays per month (a maximum of
$943 in 2024).
Even with this
exception, though, some applicants could see their monthly benefit amount
reduced; others may not qualify. The actual formula that the SSA uses is
complicated and includes the number of household members, as well as other
sources of income.
The rental
subsidy rule change is the latest SSA effort to remove barriers to accessing
SSI payments. Also in the fall of 2024, the agency will no longer use food an
applicant or recipient receives from friends, family, and community support
networks as part of its “in-kind support and maintenance” calculations. And in
April, SSA published a rule changing how it factors support from
other public assistance programs, such as SNAP, when determining beneficiary
payments.
More than 7
million individuals received
federal SSI benefits in January 2023, with payments averaging $654 per
month. During calendar year 2022, 172,000 individuals applied for SSI benefits
based on age, while 1.23 million applied based on blindness or disability.
Approximately 522,000 applicants received SSI benefits in 2022, a decrease of 1
percent compared to 2021.
Understanding
Social Security Benefits Can Be Difficult. Ashley Day Law Can Help.
While the new
SSI rule may be advantageous for many low-income, older Americans, terms like
“PMV,” “CMRV,” and “in-kind” support are not necessarily intuitive. They may
add to the confusion around an already long and challenging SSI benefits
process.
To make sure
the value of your rental subsidy is accurately determined, and that you receive
the SSI benefits you’re entitled to, get in touch with Ashley Day at 251-277-3377.
As we age, managing our finances and personal affairs can become more challenging. Many older adults want to maintain their independence but also recognize they may need some help. This is where a durable power of attorney can be very useful.What is a Durable Power of Attorney?A durable power of attorney is a legal document that allows you to choose someone you trust to handle certain tasks for you. This person is called your "agent" or "attorney-in-fact." The word "durable" means that the document stays in effect even if you become unable to make decisions for yourself later on.How Can a Durable Power of Attorney Help?A durable power of attorney gives you flexibility. It allows you to get help with tasks when you need it, while still keeping control over your affairs. Here are some ways it can be helpful:Bill Paying: You can have your agent help pay your monthly bills, while you still manage other parts of your finances.Banking: Your agent can handle bank transactions for you if needed.Legal Matters: Your agent can sign legal documents on your behalf.Property Management: Your agent can help manage your property or real estate.Healthcare Decisions: If you have a healthcare power of attorney, your agent can make medical decisions for you if you're unable to do so.You Don't Lose ControlMany older adults worry that having a power of attorney means giving up control. This is not true. Here's what you need to know:You can still manage your own affairs as usual.You can still make your own decisions and handle your own finances.Your agent doesn't replace you - they just have the ability to help when needed.You decide what powers to give your agent. You can make it very limited or very broad.Flexibility for the FutureA durable power of attorney provides peace of mind. It ensures that someone you trust can step in to help if you ever need it. This can be especially important if:You become ill or hospitalizedYou have memory problems or confusionYou have physical limitations that make it hard to do certain tasksYou want to travel but need someone to handle things at homeChoosing Your AgentPicking the right person as your agent is very important. Here are some tips:Choose someone you trust completelyPick someone who is responsible and good with financial mattersConsider choosing an adult child, close relative, or trusted friendMake sure the person is willing to take on this responsibilityYou can name more than one agent if you wantSetting It UpTo create a durable power of attorney:Decide what powers you want to give your agentChoose your agent(s)Have a lawyer draft the document for youSign the document in front of a notary publicGive copies to your agent, doctor, and important family membersMaintaining Your IndependenceRemember, having a durable power of attorney doesn't mean you're giving up control. It's a tool that helps you maintain your independence by ensuring you have help available when you need it. You can still:Make your own decisionsManage your own moneyPay your own billsSign your own documentsYour agent only steps in when you ask them to or if you become unable to handle things yourself.Changing Your MindIf you ever change your mind, you can:Revoke (cancel) the power of attorney at any time, as long as you're mentally competentChange who you've named as your agentModify what powers you've given your agentPeace of MindHaving a durable power of attorney in place can provide great peace of mind. It ensures that:Someone you trust can help you if neededYour wishes will be followedYour affairs will be managed even if you can't do it yourselfYou have a plan in place for the futureGetting HelpIf you're interested in setting up a durable power of attorney:Talk to your family about your wishesConsult with an elder law attorneyDiscuss it with your doctorReach out to local senior services for guidanceRemember, a durable power of attorney is a powerful tool that can help you maintain control over your life as you age. It provides flexibility and security, allowing you to get help when you need it while still maintaining your independence.
Guardianships, also known as conservatorships in some jurisdictions, are legal arrangements established when an individual can no longer manage their own financial, personal, or medical affairs. This legal process involves petitioning the court to appoint a guardian or conservator to oversee the incapacitated person's wellbeing and assets.When is Guardianship Necessary?Guardianship may become necessary when an individual is unable to make sound decisions due to:Advanced dementia or Alzheimer's diseaseComa or persistent vegetative stateSevere brain injury or damageOther serious medical conditions affecting cognitive functionThe key factor is that the person lacks the capacity to manage their own affairs and make important life decisions.The Legal ProcessTo establish a guardianship, the following steps typically occur:A petition is filed with the court requesting guardianship.The court reviews evidence of the individual's incapacity, including:Medical records and evaluationsTestimony from doctors and other healthcare professionalsAssessments of the person's functional limitationsThe court determines if the individual meets the legal definition of incapacity.If incapacity is established, the court appoints a qualified guardian. This may be:A family member or friendA professional guardianA non-profit organizationA government agencyThe court specifies the scope of the guardianship, which may include:Guardian of the Estate (for financial matters)Guardian of the Person (for healthcare and personal decisions)Both financial and personal guardianshipDuties and Responsibilities of GuardiansOnce appointed, guardians have significant responsibilities, including:Making financial and/or healthcare decisions on behalf of the incapacitated personEnsuring the person's basic needs are met (housing, food, medical care, etc.)Managing assets and paying billsKeeping detailed records of all actions and transactionsSubmitting regular reports to the courtObtaining court approval for major decisions (e.g., selling property, changing living arrangements)Guardians must act in the best interests of the incapacitated person at all times. They are accountable to the court and must follow all requirements outlined in the guardianship order.Ongoing Court OversightThe court maintains supervision over guardianships to ensure proper care of the incapacitated person. This typically involves:Reviewing annual reports submitted by the guardianAppointing a court examiner to monitor the guardianshipAddressing any concerns raised about the guardian's performanceModifying or terminating the guardianship if circumstances changeAlternatives to GuardianshipBefore pursuing guardianship, less restrictive alternatives should be considered, such as:Power of attorneyHealthcare proxyLiving trustsRepresentative payee for government benefitsSupported decision-making arrangementsThese options may provide sufficient assistance while preserving more autonomy for the individual.Seeking Legal GuidanceNavigating the guardianship process can be complex. An experienced elder law attorney can provide valuable assistance by:Evaluating whether guardianship is necessaryExplaining legal options and alternativesPreparing and filing required court documentsRepresenting interested parties in guardianship hearingsAdvising appointed guardians on their duties and responsibilitiesWhile guardianship provides important protections for incapacitated individuals, it also involves a significant loss of rights and autonomy. Courts aim to balance the need for protection with preserving as much independence as possible. By understanding the guardianship process and available alternatives, families can make informed decisions to best support their loved ones who need assistance.Guardianship laws and procedures vary by state, so it's advisable to consult with a qualified local attorney for specific guidance. With proper legal counsel and court oversight, guardianship can provide vital support and protection for those who truly need it.
Ninety-three percent of adults 55 and older want to remain in their homes as they age, according to U.S. News & World Report. Aging in place involves growing old comfortably and safely in ones dwelling.As adults age, they may want to remain in their homes and communities for several reasons. For one, remaining in ones own residence preserves independence.When older adults remain in their home, they can continue local activities they enjoy and maintain their routines. They may be better able to maintain their quality of life.Staying in the same community fosters social support. It makes it easier to sustain relationships with friends, neighbors, and community members. Seniors who need long-term care services also may be able to receive at-home care.Several barriers can prevent seniors from aging in place. Rising housing costs, home maintenance, and lack of accessibility can prompt older adults and their families to consider senior living options, such as assisted living.The cost of housing can be a particular burden for retirees on fixed incomes. More than half of older adult renters are cost-burdened. This means that they spend more than 30 percent of their income on housing, per the Joint Center for Housing Studies of Harvard University.The Department of Housing and Urban Development (HUD) administers programs that can help older adults age in place. HUD programs supporting seniors include the Section 202 Supportive Housing for the Elderly Program and the Section 8 Housing Choice Voucher Program. Note that moving residences to participate in one of these programs may be necessary. However, these programs can help older adults remain in communities rather than entering assisted living or long-term care facilities.Section 202 Supportive Housing for the Elderly ProgramThe Section 202 Supportive Housing for the Elderly Program incentivizes the creation of housing for low-income older adults. The program funds eligible private and nonprofit sponsors to create senior housing.Section 202 housing provides support services essential to aging in place, such as cleaning, cooking, and transportation. This type of housing is available to households with at least one adult 62 years old or older. The individual or family must meet the programs income requirements. The household income must be less than 50 percent of the Area Median Income (AMI) for the propertys location.Residents of Section 202 properties typically pay 30 percent of their adjusted household income for rent. The federal government covers the remaining costs.To find Section 202 properties, consider reaching out to a HUD-approved housing counselor for guidance. Note that, as HUD does not handle leasing, prospective renters must contact a property manager or owner directly.Section 8 Housing Choice Voucher ProgramThrough the Section 8 Housing Choice Voucher Program, low-income renters who are older can select privately owned housing of their choice that meets program requirements. This gives older renters greater flexibility in choosing housing that meets their needs. For example, they may be able to look specifically for accessible housing.Public Housing Agencies (PHAs) administer this program under HUD. Participating households receive a voucher. The program pays a housing subsidy directly to the landlord for the participating family or individual.To be eligible for Section 8 housing, families and single people must meet certain requirements. Generally, their income can be at most 50 percent to 80 percent of the median income for their region.Apply for the Section 8 Voucher Program by contacting your local PHA. HUD offers an agency directory. While waiting lists for Section 8 Housing can be long, some PHAs prioritize older applicants. HUD permits PHAs to prioritize certain applicants, which can include older adults.Speak to an Elder Law AttorneyBoth Section 202 and Section 8 programs offer housing for low-income people. However, Section 202 specifically serves households with older adults. Section 8 housing is available to low-income households, including but not limited to families with older members.Section 202 participants are more limited in their housing choices. They must reside in specific approved properties. Meanwhile, Section 8 participants have greater housing choice.Contact Entrusted Legacy Law at 412-347-1731 or click here to schedule a complimentary 15-Minute call. This article is a service of Entrusted Legacy Law. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice.
Elder Law - Plan to provide for future needs and preserve your legacy.Planning for the future and ensuring that your wishes will be carried out doesnt have to keep you up at night. If you or your loved one is 60+, now is a good time to plan your legal strategies to receive care in your home as you desire and if you may need expensive long-term care. If you have plans in place, we will review them with you and suggest modifications or additions, if any, for you to accomplish your goals.Elder law and estate planning serve two different, but equally vital, functions. The main difference is that elder law is focused on ensuring your care and preserving your assets during your lifetime, while estate planning concentrates on what happens to your assets after you die.Elder law planning is concerned with ensuring that seniors live long, healthy, and financially secure lives. It usually involves anticipating future medical needs, including long-term care. Elder law services include planning for the expected and the unexpected: pre-need planning and crisis planning. Planning is tailored to each clients concerns, goals, family dynamics, and immediate or potential future care needs and may include planning tools such as:Advance Directive for Health Care (Living Will)Healthcare Power of Attorney with Healthcare PreferencesDurable Power of Attorney for Property with Expanded PowersLong-Term Care Sensitive WillsCertification as to Validity of Power of Attorney and Agents AuthoritySpecial Needs Trusts or Other Asset Protection TrustsMedicaid and SSI PlanningLong Term Care PlanningGuardianships and ConservatorshipsUnderstanding/Protecting Against Elder Abuse and NeglectElder law planning also includes your instructions about living arrangements and priorities when it comes to care, which benefits your entire family. Whats more, it can ensure that you are protected from elder abuse or exploitation when you get older or become incapacitated. For seniors, this means resting assured that you will not be a burden to your children, siblings, or other family members if/when you are not able to care for yourselves. For other family members, your planning manifests your love for them, providing peace of mind and the tools needed to ensure care is provided as planned.Finally, elder law covers assistance with guardianship and conservatorship, if needed. Guardianship and/or conservatorship may be necessary to protect and provide for individuals who are unable to care for themselves or live independently, who are unable to understand or manage money and assets, and who may be at risk of abuse and exploitation. Supported Decision Making may be an alternative to guardianship/conservatorship for individuals with limited abilities to retain their decision-making capacity by choosing supporters to help them make choices.When planning proactively, Ashley Day Law works with you to determine your priorities and what future needs must be met and put together the best course of action based on your income and assets to protect your quality of life and reduce unnecessary stress within the family.When crisis planning, our caring and comprehensive approach can help guide you through a difficult process and relieve you of some of your worries.Having to place a loved one in a skilled nursing facility can be an emotionally wrenching experience. To make matters worse, confusion often reigns supreme when determining how to best use income and assets and when navigating the Medicaid application process. Well-meaning family, friends, and even professional advisers may give conflicting or incomplete advice causing families needlessly to lose their property and assets. At Ashley Day Law, we will help you plan for future care needs and how to pay for them, prepare documents for you to enact your plan, and assist with the administration to ensure plans are implemented and assets distributed as instructed.You want to do what is best for the people you love throughout your lifetime and ensure they are taken care of after you are gone. Give us a call.
Estate Planning - Ashley Day Law provides comprehensive planning ot individuals and families.We help our clients prepare for unexpected incapacity or death, to ensure both that their family and loved ones have the ability to care for them and that their assets are transferred at their passing in accordance with their goals and wishes. We design and create proper estate plans for our clients, review beneficiary designations, and advise our clients to ensure trusts are funded.Establishing your estate plan is one of the most important steps you can take to protect yourself and your loved ones during your lifetime, in case of disability, and at your death. A well-thought-out and comprehensive estate plan can prevent the need for someone to obtain guardianship in the future, lessen administrative costs associated with the transfer of assets at death, and help smooth familial relations.Our estate planning services include:Forming Living, Irrevocable Protection TrustsAssisting with Beneficiary Designations and Other Non-Probate TransfersDrafting Wills, Living Trusts, Healthcare Directives, Powers of Attorney, and Other Planning DocumentsAdvising Executors, Administrators, Trustees, and GuardiansDeveloping Caregiver Agreements and Other Family AgreementsPost-Mortem PlanningWhile estate planning often includes a variety of items among those listed above, foundational estate planning includes, at least, wills, durable powers of attorney, advance healthcare directives, HIPAA authorizations, and a stand-alone or testamentary supplemental needs trust if you have a loved one with special needs. These instruments are critical to ensure your wishes are followed. A properly designed and implemented estate plan also can help you accomplish additional goals, such as:Providing financial security for your familyEnsuring your property is preserved and passed on to your beneficiariesAvoiding disputes among family members, business owners, or with third parties (such as the IRS)Providing for your childrens or grandchildrens educationProviding for your favorite charityMaintaining control over or ensuring the competent management of your property in case of incapacityMinimizing tax consequences and other costsAvoiding probateProviding adequate liquidity for the settlement of your estateTransferring ownership of your business to your beneficiariesPassing on your values, sense of responsibility, and work ethic to heirsEvery family situation is unique. We work with you and your other professional advisors, including financial planners, accountants, and/or other attorneys who are familiar with your goals and concerns to determine what options work best for you and your family and ensure their implementation.By protecting your estate and yourself, you are protecting your family and sparing them the expense, delay, and frustration that occurs when family members fail to plan. No estate plan is one size fits all. As priorities change, plans can be modified. Its never too early or too late to plan. Give us a call. Were here to help.
SPECIAL NEEDS PLANNINGParents of children with special needs often worry about how their children would survive and be cared for when their parents are no longer alive to support them. If one of your loved ones is living with a disability, you make sure that all their needs are met daily. But what would happen if you were gone?Also, over the years, parents are required to make many decisions in their childrens best interests, and those decisions are only amplified for parents with special needs children. Often, parents of special needs children dont know what questions to ask and are unaware of the many questions that inevitably will come their way. For the greatest success in securing your childrens futures, its important for parents and other family members to be prepared before its too late. Thats the role of special needs planning.Special Needs Planning involves preparing for the current and future care needs of children and adults with intellectual and/or developmental disabilities, neurocognitive disorders, and/or psychiatric illnesses. It is the best way for a parent, grandparent, and/or guardian to proactively protect and provide for children and grandchildren with disabilities both in the near and not-so-near future for care, housing, and quality of life should something unexpectedly happen to you; for 18th birthdays (automatic transfer of parental rights); for eligibility for government benefits; for change in life circumstances; planning for your childs quality of life, and for your peace of mind.Our special needs planning services include:Special (Supplemental) Needs TrustsRevocable Living Trusts with Special (Supplemental) Needs Trust ProvisionsWills with Special Needs & Spousal Trust ProvisionsGuardianships and ConservatorshipsPlanning for Age 18Planning for Eligibility for Government Benefits (SSI, Medicaid, etc.)Government Benefits AdvisementSchool Law/AdvocacyGuardianship/Conservatorship AdministrationSpecial (Supplemental) Needs Trust AdministrationSpecial needs planning is critical because individuals with special needs often are unable to make appropriate financial decisions for themselves and/or are at risk of financial exploitation by others. Equally important is to maintain eligibility for public benefits such as Supplemental Security Income (SSI) and Medicaid and enable children with special needs to have fulfilling lives.SSI is used to pay for food and housing (primary needs), but it is not nearly enough to live on. Medicaid waiver programs enable access to beneficial services and programs not accessible absent Medicaid eligibility. Generally, beneficiaries of SSI or Medicaid can have little income and, at most, $2,000 in assets. Leaving money to loved ones directly to provide for their care would jeopardize their ability to receive any help from these means-tested government programs. On top of that, the money left to them would have to be spent down to pay for primary needs previously covered by SSI instead of being used to improve the care provided and quality of life. A Special (Supplemental) Needs Trust (SNT) manages resources while also maintaining the beneficiarys eligibility for public assistance benefits.For most families, a third-party irrevocable Special SNT is the most effective way to set aside assets and funds to help the person with special needs. Cash, investment accounts, real estate, or proceeds from a life insurance policy are common ways to fund the trust. The trust can provide for the beneficiary during the parents lifetimes and will provide for the beneficiary when parents are no longer around to care for the beneficiary. Because the SNT owns the assets instead of the beneficiary, the assets are excluded from asset limit tests for SSI or Medicaid. Meanwhile, trust funds can be used to pay for quality-of-life improvements for the beneficiary, such as a phone, an iPad, computer games, trips, travel to visit family, entertainment events, and other activities. The SNT also ensures that funds are used for the benefit of your vulnerable family member and that other relatives, such as siblings, are not left with the responsibility and costs of care.Special needs planning can be a complex and confusing area of the law. Ashley Day Law, LLC will work with you to construct a comprehensive plan customized to your situation and provide you with the tools and information necessary to make sure your loved one is protected, so you have peace of mind knowing your loved one will be taken care of just as you wish.How well you do or dont plan for a special needs family member can have tremendous consequences. Give us a call. Let us help you get it right.