Income for disabled young adult

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Topic Author
DoDad
Posts: 7
Joined: Sun Nov 05, 2017 9:34 am

Income for disabled young adult

Post by DoDad » Sun Nov 05, 2017 11:31 am

I have a 21-year-old mentally ill child and it looks like he will not be able to complete college or do much work. He doesn't qualify for SSI because he has too many assets or for SSDI because he doesn't meet their definition of "permanently and totally" disabled. It seems to me that despite his age he is essentially a retirement investor so I am considering liquidating his college fund (c. $100k) and investing it to generate an allowance. Perhaps as he inherits there will be enough to cover his living needs. Vanguard Managed Payout may be a good solution. At first I was skeptical because what's the difference if they calculate a 4% payout or I calculate a 4% payout? But my son, like an elderly client with diminished capacities, will not be able to do this calculation, so perhaps it's a valuable service.

I'd love to hear feedback on this idea or any other suggestions. I'm aware of ABLE accounts and am not ruling one out, but they seem of limited use in this situation.

mrsbetsy
Posts: 204
Joined: Mon Jun 26, 2017 12:16 am

Re: Income for disabled young adult

Post by mrsbetsy » Sun Nov 05, 2017 1:17 pm

Since the ABLE accounts are specifically designed to protect entitlements, I am unsure if that would be of any advantage to you in this situation.

Would you consider a conservatorship for him? I would worry about his ability to make decisions and/or being swindled out of any monies. We did this for our 20 year old and it paved a clean/clear path towards SSDI eligibility and he was easily approved. However, assets must stay <2K.

mike512usa
Posts: 19
Joined: Wed Sep 27, 2017 7:30 pm

Re: Income for disabled young adult

Post by mike512usa » Sun Nov 05, 2017 2:42 pm

This is a very difficult and emotional situation. I had some cousins that were mentally retarded (not sure if that is PC). The two boys were blessed with a family that took care of them. As my aunt and uncle got older they made arrangements for their brothers to take care of them. The two boys were also blessed with brothers that were willing to take over their care. I feel that having a responsible, caring and honest guardian may be your biggest concern. Once the money is gone there are programs/assistance that will be available but it can also be a battle to get it. It is good that you are planning this now.

Topic Author
DoDad
Posts: 7
Joined: Sun Nov 05, 2017 9:34 am

Re: Income for disabled young adult

Post by DoDad » Sun Nov 05, 2017 4:14 pm

mrsbetsy wrote:
Sun Nov 05, 2017 1:17 pm
Since the ABLE accounts are specifically designed to protect entitlements, I am unsure if that would be of any advantage to you in this situation.

Would you consider a conservatorship for him? I would worry about his ability to make decisions and/or being swindled out of any monies. We did this for our 20 year old and it paved a clean/clear path towards SSDI eligibility and he was easily approved. However, assets must stay <2K.
Is a conservatorship the same as a guardianship? We are writing a trust into our wills but that is really the extent of our planning at this point. For the moment I am looking for the right vehicle to generate income.

TerryDMillerMBA
Posts: 118
Joined: Tue Jul 05, 2011 8:32 pm

Re: Income for disabled young adult

Post by TerryDMillerMBA » Sun Nov 05, 2017 7:12 pm

DoDad wrote:
Sun Nov 05, 2017 4:14 pm

Is a conservatorship the same as a guardianship? We are writing a trust into our wills but that is really the extent of our planning at this point. For the moment I am looking for the right vehicle to generate income.
The terms are used by some interchangeably, but they aren't. The conservator's responsibilities are definitely fiduciary in nature, while a guardian is more concerned with day-to-day living and medical things.

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dm200
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Location: Washington DC area

Re: Income for disabled young adult

Post by dm200 » Sun Nov 05, 2017 7:19 pm

DoDad wrote:
Sun Nov 05, 2017 11:31 am
I have a 21-year-old mentally ill child and it looks like he will not be able to complete college or do much work. He doesn't qualify for SSI because he has too many assets or for SSDI because he doesn't meet their definition of "permanently and totally" disabled. It seems to me that despite his age he is essentially a retirement investor so I am considering liquidating his college fund (c. $100k) and investing it to generate an allowance. Perhaps as he inherits there will be enough to cover his living needs. Vanguard Managed Payout may be a good solution. At first I was skeptical because what's the difference if they calculate a 4% payout or I calculate a 4% payout? But my son, like an elderly client with diminished capacities, will not be able to do this calculation, so perhaps it's a valuable service.

I'd love to hear feedback on this idea or any other suggestions. I'm aware of ABLE accounts and am not ruling one out, but they seem of limited use in this situation.
Are there any type(s) of employment that he could do?

JBTX
Posts: 5752
Joined: Wed Jul 26, 2017 12:46 pm

Re: Income for disabled young adult

Post by JBTX » Sun Nov 05, 2017 9:09 pm

I feel for your situation. We have a 13 year old that may very well end up in the same situation. We are trying to figure out how to make sure he qualifies for benefits when he turns 18, assuming he is meets the criteria.

As to having too much assets, I’d find an attorney or other professional that specializes in this area. Ultimately you need to get those assets out his name into some sort of trust or able account. I’m not sure if you can just transfer them in there or if they have to be spent down. For some programs there is a 5 year look back of finances for eligibility. If may take a while but this is something you will be dealing with all of your life and your son should be able to get all of the benefits he is entitled to.



It is shocking that he doesn’t meet the criteria for being disabled. The number receiving disability has exploded in recent years and many people you wouldn’t have thought of as being disabled are getting disability.

http://apps.npr.org/unfit-for-work/

If I were you I wouldn’t just let this go. Find somebody who specializes in this and get a plan to move him towards the benefits he deserves.

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