How Will Handling My Mother's Affairs Affect My SSDI?

Full question:

My stepfather passed away and my Mother who had been a housewife didn't know anything about how to continue with business. I have stepped in to help her file for Social Security, open bank accounts, get Medicare, pay off all my stepfather's bills for the estate, etc. My Mother has Parkinson's and she had a hard time with dementia, as well as remembering how to do business which will increase over time. She insist I take care of all of her business. I could not talk to the bank about bill pay and such unless my name was on the account which my Mom and I did as a joint account. What concerns me now is I don't know how this will effect me as I am on SSI for disability and I'm only allow so much in resources. I was one credit shy of being able to get SSD. How can I help take care of my Mother's business issues without risking my SSI? My Mothers assets alone in the bank are way over the $2k allowed for SSI. What about her property as well? I'm just uncertain what to do. This inquiry is for the county of Escambia in Pensacola, FL Thanks in advance.

• Category: Wills and Estates
• Date: 04/07/2025
• State: Florida

Answer:

A diagnosis of Alzheimer’s or dementia alone is not an indication of incompetence.

Legal capacity is the level of judgment and decision-making ability needed to sign official documents. In order to be competent or have legal capacity to sign documents, a person must be able to understand and appreciate the consequences of his/her actions. In most cases, the person with dementia is able to understand the meaning and importance of a given legal document.

Once a person is diagnosed with dementia, family and friends should help the person make legal plans. The sooner plans can begin, the more the person with dementia may be able to participate.

Planning for incompetence includes:

-Making plans for health care and long-term care coverage

-Making plans for finances and property

-Naming another person to make decisions on behalf of the person with dementia

A living will, power of attorney, and testamentary will should be prepared.

A representative payee is an individual or organization appointed by SSA to receive Social Security and/or SSI benefits for someone who cannot manage or direct someone else to manage his or her money. The main responsibilities of a payee are to use the benefits to pay for the current and foreseeable needs of the beneficiary and properly save any benefits not needed to meet current needs. A payee must also keep records of expenses. When SSA requests a report, a payee must provide an accounting to SSA of how benefits were used or saved.

The law requires most minor children and all legally incompetent adults to have payees.
If adult beneficiaries are not be capable of managing benefits SSA may gather evidence and determine there is a need to appoint a representative payee. We suggest contacting the Social Security Administration for a determination of whether a representatve payee is needed and how the situation may affect your benefits eligibility. Please see the contact information at the following link:

http://www.ssa.gov/pgm/reach.htm