Non-Cash Assets Can Sink Your SSI Claim

The Social Security Administration has two different programs that are designed to be safety nets for people who are too sick or injured to work.

Social Security Disability Insurance (SSDI): SSDI is only available to people who have a sufficient work history. Generally you need to work at least five out of the last 10 years and pay Social Security, disability insurance and taxes - and that applies to people who are over 31. The requirement is less for people aged 18-31.

Supplemental Security Income (SSI): The other kind of disability benefits that someone can apply for is called Supplemental Security Income, which is available to people who don't have the work history to qualify for SSDI. An additional requirement for SSI is that the person applying for benefits pass a means test.

When performing a means test for SSI, one of the touchstones the Social Security Administration looks for is the applicant’s assets. In general, the person applying for SSI - assuming they can meet the medical requirements for disabled status under Social Security's rules - can have no more than $2,000 in assets. That includes property, bank accounts and even jewelry. In general, however, there are a few exceptions to this rule: applicants are permitted to have one house, one primary vehicle, and other essentials.

Unfortunately, many of our SSI clients run into the situation where their names are on the deeds of properties that are held by other family members.

We recently came across a client who came to us applying for SSI. She has not been able to work for the last two years, and her application had been pending for all that time. As a result, she has been struggling to make ends meet, and is now close to being destitute.

Her case became complicated when she learned that a relative passed away in Puerto Rico, and the relative owned property there - and our client’s name may have been on the deed to the property. Right now our client is in limbo, and she does not know what is going to happen to the property in Puerto Rico. I explained to her that if her name is on the deed, she does stand to gain some significant assets, and that would render her unqualified for SSI.

Our client now finds herself in a good news/bad news situation because that asset may have her name on it, but she may not be able to put her hands on it - and that asset alone would disqualify her for SSI.

It's something we’re studying, but we wanted to bring the issue to the attention of other people out there who may be considering applying for SSI: Be mindful of the fact there is an income analysis that Social Security does. In addition to determining whether you're medically disabled, you must also have limited assets.

Anselmo A. Alegria
aaa@alegriabarovicklaw.com
alegriabarovicklaw.com
914-761-1133

Social Security Disability Insurance Hearings: What Happens When The Applicant Himself Is A No-Show?

Many people applying for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits have mental disabilities.

Mental health problems can impair a person’s functioning, causing crippling anxiety and stress, which is often exacerbated by the inability to work or form social connections. They often become isolated, which worsens their anxiety and can result in an applicant becoming too nervous to appear at his or her own SSDI or SSI hearing.

Generally, when a “no-show” occurs, the person’s claim is denied. That is why I was extremely gratified recently when a client was awarded SSI benefits despite his failure to appear for the hearing.

This applicant had severe mental impairments, including schizophrenia, which caused him to be unable to work. These same problems also made him too anxious to attend his hearing. I moved forward with his case anyway, armed with a detailed legal brief which I prepared well ahead of time. The brief identified the client’s medical history, medical record and the areas where he met Social Security’s requirements. I presented all of his medical records to the judge, in addition to cross-examining Social Security’s independent psychiatrist, thus proving my client’s impaired condition. After a review of all the facts, the presiding judge approved the claim despite my client’s absence.

The fact that this claimant and others like him sometimes fail to appear for their hearings is further evidence of the misrepresentations made by some politicians about fraud in the SSDI system. Those people who do not appear are likely to be seriously disabled and unable to get themselves out of their homes, despite it being in their best interests to do so.

In this case the disability was invisible, but I was still able to identify it thanks to the preparation we put into this case and our ability to cross-examine Social Security’s independent psychiatrist effectively. That is why hiring the right disability lawyer can make an enormous difference in the outcome. I am very glad that my client’s absence was not enough of a reason to deny his claim. Finally, an individual greatly in need of social security disability benefits will receive them.  

Anselmo A. Alegria
aaa@alegriabarovicklaw.com
alegriabarovicklaw.com
914-761-1133

The Real Story On Social Security Disability Fraud

I was disheartened to read a recent article in Forbes magazine concerning Social Security Disability Insurance (SSDI) fraud. The piece by Richard Finger was extremely misleading and is likely to give an uninformed reader a very distorted picture of how the SSDI system actually works. The article reads like a propaganda piece written by someone who has no actual knowledge of the day-to-day functioning of the SSDI program - and who is simply trying to score some political points. Here are some of the most striking inaccuracies in the article:

• FALSE STATEMENT: It is in the best interest of an SSDI lawyer to take every disability case to trial. 
  
  This point flies in the face of reality. The way the SSDI system actually works, a lawyer only receives a contingency fee if his or her client is awarded benefits. If the client is denied benefits, the lawyer receives no compensation. So when Finger states that taking a case to trial is a win for the applicant’s attorney “no matter the verdict,” he is, intentionally, putting out misinformation. There is no trial. A Social Security Administration judge decides whether the claimant is disabled.
• FALSE STATEMENT: SSDI judges approve disability benefits automatically.

  
  

  Finger writes that some judges never refuse anyone SSDI benefits. This is a misleading statement, as the statistics show that on average only a little more than 50% of SSDI applicants that go before a judge are awarded any benefits. The reality is that some judges are more easily persuadable than others, but there certainly are not any judges who approve benefits for every applicant they encounter.
• FALSE STATEMENT: It's easy for anyone who claims “back problems” to receive benefits.  
  
  Finger mocks those who apply for SSDI based on back-related ailments, suggesting that many of them are faking their injuries, but are always approved for benefits anyway. As an attorney who represents individuals applying for these benefits on a daily basis, I can state that it would not be easy for someone to receive benefits by feigning an injury.
  
  There is an administrative review and balancing process in place for that reason. People who apply for benefits must provide proof of disability to support their claims. In fact, most claimants, especially claimants with disabling back conditions, are examined by doctors selected by the Social Security Administration. The notion that people can simply complain of back pain and pick up their SSDI checks the next day, as Finger implies, is inaccurate as well as insulting to those who are actually disabled and suffering severe pain.   

Relative to the population, the percentage of Americans receiving SSDI benefits is less today than it was 30 years ago. But people like the writer of this Forbes article don't seem to want to let facts get in the way of their theories. It’s a shame that someone who obviously knows little to nothing about the realities of the SSDI system is attempting to influence his readers about it by providing misleading and inaccurate information.

What questions do you have about the Social Security Disability system?


Anselmo A. Alegria
aaa@alegriabarovicklaw.com
alegriabarovicklaw.com
914-761-1133