ssi and special needs fund

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thomasttt
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ssi and special needs fund

Post by thomasttt » Wed Nov 30, 2016 7:04 pm

I have a question. I got medically approved for ssi but still need to go in for an end interview to determine my assets and finances. I have around 9,700 in an inherited IRA. I'm afraid that the interviewer for ssi may think I have too much assets to qualify - therefore my question is - Is there any way of putting this money into a special needs trust. How would I go about this

any help greatly appreciated

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dodecahedron
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Re: ssi and special needs fund

Post by dodecahedron » Wed Nov 30, 2016 7:26 pm

Here is some advice from the Social Security Administration's page on SSI and trusts.

https://www.ssa.gov/ssi/spotlights/spot-trusts.htm

You might be able to put your funds in a special needs trust but it sounds like they advise a lawyer. Given your very modest resources, I'd suggest looking for pro bono help from a legal aid society near you.

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FrugalInvestor
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Re: ssi and special needs fund

Post by FrugalInvestor » Wed Nov 30, 2016 7:35 pm

Since your funds are fairly limited you may want to look into a pooled trust in your state. I believe they are relatively common. I have a relative who used one of these successfully when receiving a small inheritance and didn't want to risk losing benefits. It worked well, but did involve some reasonable administration fees (minimized by taking a few relatively large distributions rather than a number of small ones).

In the relative's case an attorney was contacted. The attorney provided guidance to an appropriate trust and offered to assist in getting it set up. Since the amount was fairly small the attorney was not used and all turned out well.

Here's a site to search for possibilities....
https://www.specialneedsalliance.org/po ... directory/
Last edited by FrugalInvestor on Wed Nov 30, 2016 8:30 pm, edited 1 time in total.
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dm200
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Re: ssi and special needs fund

Post by dm200 » Wed Nov 30, 2016 8:06 pm

thomasttt wrote:I have a question. I got medically approved for ssi but still need to go in for an end interview to determine my assets and finances. I have around 9,700 in an inherited IRA. I'm afraid that the interviewer for ssi may think I have too much assets to qualify - therefore my question is - Is there any way of putting this money into a special needs trust. How would I go about this
any help greatly appreciated


Are you (or might you be) eligible for SSDI, which is NOT "means tested"?

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dm200
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Re: ssi and special needs fund

Post by dm200 » Wed Nov 30, 2016 8:08 pm

thomasttt wrote:I have a question. I got medically approved for ssi but still need to go in for an end interview to determine my assets and finances. I have around 9,700 in an inherited IRA. I'm afraid that the interviewer for ssi may think I have too much assets to qualify - therefore my question is - Is there any way of putting this money into a special needs trust. How would I go about this
any help greatly appreciated


Based (anecdotally) on what I know of several people receiving SSI, is it possible that this $9.700 might not disqualify you?

thomasttt
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Re: ssi and special needs fund

Post by thomasttt » Thu Dec 01, 2016 6:14 pm

I just wanted to thank everyone for their replies. It turned out that I spoke to my attorney and he stated that I should be eligible for ssdi - not ssi. Therefore, there should be no worries about any money in an inherited IRA. However, if it was ssi, I would probably do what FrugalInvester suggested which is look into a pooled trust fund (pooled because I only have 9,700). :sharebeer

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dm200
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Re: ssi and special needs fund

Post by dm200 » Thu Dec 01, 2016 8:12 pm

thomasttt wrote:I just wanted to thank everyone for their replies. It turned out that I spoke to my attorney and he stated that I should be eligible for ssdi - not ssi. Therefore, there should be no worries about any money in an inherited IRA. However, if it was ssi, I would probably do what FrugalInvester suggested which is look into a pooled trust fund (pooled because I only have 9,700). :sharebeer


It is VERY "unfortunate" [I could use a stronger term like "STUPID"] that the Federal Government chose to name these two VERY different programs with such easily confused (and confusing) names. Adding to this puzzle is that there are administered by the same agency!

Social Security Disability Income (SSDI): No means testing and funded by employer/employee deductions (Social Security).

Supplemental Security Income (SSI): IS "means tested" AND is funded by general tax revenue.

MrsBDG
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Re: ssi and special needs fund

Post by MrsBDG » Thu May 18, 2017 10:41 am

How would you determine which a person is on? My sister has an in law they are trying to help, pretty sure they were on SSI, but now that they are over 65, what could my sister look at or ask about to determine if the person is no longer means tested? She's not sure that simply asking the question will get an accurate answer, so would love to ask to look at a benefit stub or at something that would affirm the program that is paying the money

Rupert
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Re: ssi and special needs fund

Post by Rupert » Thu May 18, 2017 10:55 am

MrsBDG wrote:How would you determine which a person is on? My sister has an in law they are trying to help, pretty sure they were on SSI, but now that they are over 65, what could my sister look at or ask about to determine if the person is no longer means tested? She's not sure that simply asking the question will get an accurate answer, so would love to ask to look at a benefit stub or at something that would affirm the program that is paying the money


If the person has reached full retirement age (FRA), they are not on SSDI because SSDI automatically switches to retirement benefits at FRA. So, if FRA or older, the person is either on SSI or social security retirement. SSI pays a maximum of $735/month to an individual. So if the person is receiving benefits higher than that, then he/she is drawing retirement benefits and was likely on SSDI prior to FRA.

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dm200
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Re: ssi and special needs fund

Post by dm200 » Fri May 19, 2017 9:08 am

MrsBDG wrote:How would you determine which a person is on? My sister has an in law they are trying to help, pretty sure they were on SSI, but now that they are over 65, what could my sister look at or ask about to determine if the person is no longer means tested? She's not sure that simply asking the question will get an accurate answer, so would love to ask to look at a benefit stub or at something that would affirm the program that is paying the money


It seems to me that whether this is SSI or SSDI ought to be clear from the documents given as well as the detail on the electronic bank deposits. I think (not sure) SSI may continue past age 65, if still eligible. Doesn't she get an annual belefit statement?

Rupert
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Re: ssi and special needs fund

Post by Rupert » Fri May 19, 2017 9:31 am

dm200 wrote:
MrsBDG wrote:How would you determine which a person is on? My sister has an in law they are trying to help, pretty sure they were on SSI, but now that they are over 65, what could my sister look at or ask about to determine if the person is no longer means tested? She's not sure that simply asking the question will get an accurate answer, so would love to ask to look at a benefit stub or at something that would affirm the program that is paying the money


It seems to me that whether this is SSI or SSDI ought to be clear from the documents given as well as the detail on the electronic bank deposits. I think (not sure) SSI may continue past age 65, if still eligible. Doesn't she get an annual belefit statement?


SSI can continue past full retirement age. SSDI cannot. And, just fyi, 65 is not a relevant number for social security (including SSI and SSDI) purposes, as no one's full retirement age is 65. 65 is a Medicare number.

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dm200
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Re: ssi and special needs fund

Post by dm200 » Fri May 19, 2017 9:36 am

And, just fyi, 65 is not a relevant number for social security (including SSI and SSDI) purposes, as no one's full retirement age is 65. 65 is a Medicare number.


Thanks for the clarification. Agre 65, not that many years ago, was the FRA ;)

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