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Law Services News -March/April, 2004

Beware All SSI Recipients With Saving Bonds

Twice a year the federal government cross-checks the bank accounts of SSI recipients. This includes savings bonds, which are often tucked away and forgotten. Discovery of them can wreak quite a bit of havoc. If the total exceeds the $2000 SSI resource limit, termination of benefits and imposition of a whopping overpayment can result.

Savings bonds, of which an SSI recipient is aware, must be reported to the Social Security Administration. Even though the bonds are sitting in a drawer or a safety deposit box, they are not invisible and count as a resource. However, there might be circumstances where the SSI recipient is not aware of savings bonds. For instance, a grandparent might have purchased them years before and retained them, and all involved have forgotten about them. These SSI recipients should promptly (within 10 days of the notice) challenge the termination of their benefits and seek waiver of any overpayment.

SSI recipients may have one of several arguments. For instance, they can argue that they are not the actual owner of the bonds. According to Social Security law, the name on the bond (perhaps the grandparent’s) is the proof of ownership, not the Social Security number. In addition, although co-owners are usually deemed to have an equal share in the bond, if one co-owner has physical possession of the bond and will not relinquish it, it should not be considered a resource. Finally, most U.S. savings bonds, regardless of value, will not count as a resource during the 16 or 12 month mandatory retention period.

If you receive SSI for a mental illness or AIDS or are a senior citizen, an advocate at Law Services may be able to assist you at the hearing. Unfortunately, though, for those with other disabilities our Disability Advocacy Project can only handle disability hearings. However, DAP staff would be happy to provide you with information over the phone so that you can represent yourself, or our Legal Support Center for Advocates can assist a community advocate to complete a waiver application or prepare for a hearing.
Written by Candace Scott Appleton, Senior Staff Attorney,DAP Unit

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