SSR 76-8: Sections 1602, 1611(a)(1)(B), and 1613(a) (42 U.S.C. 1381a, 1382(a)(1)(B), and 1382b(a))—Supplemental Security Income—Nonexcludable Resources
20 CFR 416.1201, 416.1205(a), 416.1210, 416.1218, 416.1224, and 416.1240
The Social Security Administration disallowed the claimant's application for supplemental security income because of excess resources. Under pertinent regulatory criteria, a resource is defined to include real or personal property which may be converted to cash and used for support and maintenance. Thus, the property is considered a resource if the claimant had the right to convert it to cash to be used for his support and maintenance. The claimant is allowed to exclude from his countable resources the value of one vehicle (provided the value does not exceed prescribed amounts). In addition to cash, the claimant owned several vehicles, and held a note and Deed of Trust, and a contract for sale for balance owed him for the sale of several pieces of property. Held, the excess vehicles, the note and Deed of Trust, and the contract of sale could be converted to cash and used for the claimant's support and maintenance, and thus, after considering their approximate market value, the claimant's non-excludable resources exceed the amount permitted under title XVI of the Social Security Act and he is therefore ineligible for supplemental security income benefits.
Section 1602 of the Social Security Act provides, in part, for the payment of benefits by the Secretary of Health, Education, and Welfare, to every aged individual who is determined to be eligible on the basis of his income and resources.
Section 1611(a)(1)(B) indicates that each aged individual who does not have an eligible spouse and—
whose resources, other than resources excluded pursuant to section 1613(a), are not more than (i)***(ii) in case such individual has no spouse with whom he is living, $1,500, shall be an eligible individual for purposes of this title.
Section 416.1205 of Regulations No. 16 states in pertinent part, as follows:
An aged, *** individual without an eligible spouse may have nonexcludable resources not in excess of $1,500, and not be ineligible for benefits under title XVI of the Act.
The evidence indicates the claimant purchased a 1961 pick-up truck around 2 years ago for about $350. It is presently operable, but is not driven because it is not licensed by the State in which he lives due to a dispute pending over a prior licensing debt of $27.
He also owns a 1958 automobile, which is inoperable and which was purchased for an agreed sum of $100, upon which a balance of $49 is presently due. The claimant continues to own a 2-ton truck, which he purchased around 1971, which is also operable. However, this vehicle is also unlicensed because of a dispute over the need for a smog device. Finally, he owns a 1974 motorcycle, which he purchased in October of that year for about $542.
The approximate market value of the above-said vehicles is reflected as follows:
|1964 Ford truck||$100|
|1958 Simca station wagon||$100|
|1966 2-ton Chevrolet truck||$400|
The claimant's 1974 motorcycle was excluded as a resource pursuant to §416.1218 of Regulations No. 16.
The claimant sold 22 acres of unimproved land on January 17, 1969, for $1,800. Said sale was secured by note and Deed of Trust bearing interest at the rate of 7 1/2 percent per annum. He indicated the present balance thereof was $1,439.
It was also indicated by the claimant, that he owned 3 lots and sold same, pursuant to a contract of sale around February 1973 for $2,000. The purchase price was payable at the rate of $25 per month. At the time of the hearing, the claimant stated that the purchaser was in default and the balance due upon the above-said contract of sale was $1,665. If the sale were not to be completed, the claimant assessed the market value of this property at approximately $4,000.
"Liquid resources" at the time of the hearing approximated $95.
Section 416.1210 indicates which resources shall be excludable with the following language:
In determining the resources of an individual, the following items shall be excluded:
(a) The home "including the land appertaining thereto" to the extent its value does not exceed the amounts set forth in §416.1212;
(b) Household goods and personal effects to the extent that their total value does not exceed the amount provided in §416.1216;
(c) An automobile to the extent that its value does not exceed the value provided in §416.1218;
(d) Property of a trade or business which is essential to the means of self-support as provided in §416.1222;
(e) Nonbusiness property which is essential to the means of self-support as provided in §416.1224***
Section 416.1201 of Regulations No. 16 generally defines resources as follows:
For purposes of this Subpart L, resources means cash or other liquid assets or any real or personal property that an individual (***) owns and could convert to cash to be used for his support and maintenance. If the individual has the right, authority, or power to liquidate the property, or his share of the property, it is considered a resource. If a property right cannot be liquidated, the property will not be considered a resource of the individual.
In view of the foregoing, it appears the total countable resources the claimant are as follows:
|3 vehicles||$ 600|
balance of note and Deed of Trust
(sale January 1969)
balance contract of sale
(sale February 1973)
It is the decision of the Administrative Law Judge that the claimant's resources, after exclusions, exceed the maximum amount permitted under the law and, therefore, he is not eligible for Supplemental Security Income benefits under the Social Security Act.