He has been living off of their savings from her low social security income. He will be running out of money soon and I'm wondering what recourse he has. He applied for social security disability but was rejected because he did not have a mental disability diagnosis. He is currently seeing a psychologist. I am his aunt and his closest caregiver. He has a low income health card to get discounted medial and dental service but no other financial help. Do we wait until he is out of money to apply for any benefits? I need guidance.
Auntie, has the house been transferred into his name? I’d look into planning on what his living independently outlook will be in 10 - 20 years and gear his house to be titled to make that easier with the assets that the house sale provides go into a Trust of some sort that does not affect negatively his ability for Medicaid or other low income benefits. It something to discuss with atty.
If his disability has been there since before he turned 26, he might be able to do an ABLE account. They are new & each state seems to have thier own system for how funds placed. ABLE are limited to 14k a year but the $ is excluded from counting as an asset for Medicaid or other needs or means tested programs forever. Let’s say when he turns 65, he can now move into low cost senior housing. So the house is sold say for 100k but as house is titled as a Trust and the Trust continues to exists so every year the Trust automatically places 14k (or 10k or 7k) a year into nephews ABLE account. So this would be spending $ for him in addition who whatever SS / SSI pays him. I’d be concerned that without you there to shepherd him & his homeownership, he will get in over his head and loose property by something simple like failing to pay property taxes. Putting forward the idea of moving into senior housing, well it may take a few years of time to get him to get into doing this. Perhaps you & him can make that the 5 year goal.
He would need to see a few doctors (usually a psychiatrist) to document his disability.
The lawyer will have their own doctors, go see them. It is important to add facts to his record.
I could be wrong, but if he never worked, he may be able to collect benefits based upon his parent's income, but that may have to be done early, at age 18.
The lawyer will know how to apply for other benefits, such as SSI if he never worked.
While many say this can be done by a lay person, there are many cases that need a lawyer, especially if he was turned down already.
The assets he has will not affect any social security income due him, but will affect any SSI benefits because that is based upon low income. Can he pay off the home with it so he doesn't have a mortgage? = L a w y e r.
Do it now, time is of the essence.
Note:
It used to be that 97% of applicants for SSDI are turned down at first. I just read that 65% of applicants are turned down today (as reported by specialist attorneys).
It is important that you get the advice you need to help your nephew. Not what the statistics are, imo.