The Effects of Quitclaim Deeds on SSI Eligibility

Social Security Income, or SSI, is a government program, funded by general taxes, that provides for the needs of disabled and elderly U.S. citizens who meet specific financial criteria.  Individuals applying for SSI benefits may transfer assets through quitclaim deeds to ensure they qualify for benefits.

Requirements

Individuals applying for SSI benefits must meet specific financial criteria.  Individuals must have resources less than $2,000 and couples less than $3,000 per month.  An individual's or couple's home, land and belongings inside the home are not included in this calculation.  In addition to the financial criteria, applicants must be over the age of 65, or be blind or disabled.  The financial situation of the applicant will be carefully reviewed along with vision and disability criteria to ensure the applicant or applicants qualify for SSI benefits. 

Qualifying

If individuals or couples are applying for SSI benefits and realize they do not fall under the financial criteria, they must be careful how they reduce assets.  If assets are sold to meet criteria, the profits made will be considered in the calculations and exempt the applicant.  Another way to transfer assets so the applicant can qualify for SSI benefits is to use quitclaim deeds.

Quitclaim Deeds

Quitclaim deeds are a way for individuals to transfer property whether the asset has a clear title or not.  Quitclaim deeds are typically used by family members or very close friends.  Quitclaim deeds benefit both parties because the one relative gains an asset and the applicant for SSI benefits is able to part with enough assets to qualify for benefits.