Social Security Questions and Answers

Medi



Ok..remember that SSI is a pure welfare program unlike title 2 DIB which a person qualifies by virtue of paying into the system.



As a pure welfare program SSI is income based.



Example: if a person has a rich uncle that gives them $1,000 a month because they are disabled, then that person is not eligible for SSI because they exceed the income level.



If that rich uncle gives them $250 in cash, buys $250 worth of food, and let's that person live in a condo the rich uncle owns that has a fair market rental value of $500....then that person can't get SSI.



Right now if someone has an income (and that is literally anything that comes in not the often used idea of earned income) of ~$900 then that person is not getting SSI. Anything of value they receive for less than that can reduce the amount of SSI payment.



Now of course that applies to gifts.



If a disabled person receives assistance from a relative, friend, whatever, with the understanding that the person disabled will pay back when SSI comes through, then that does not count as resource.



Of course other proble,s for adults on SSI are things like when aunt Sally passes away and leaves a generous inheritance, even several thousand dollars result in the person having SSI suspended until that money is exhausted.



And don't get me started when an adult on SSI is in line to receive a six or seven figure sum....just google special needs trust SSI...lol...which is a type of trust that protects someones SSI benefit. But those are handles by trust and will attorneys.



Steven

Don't have time to get into the nitty gritty of it.  I just ggoled like I said and this random website has a good overview.

http://www.nsnn.com/frequently.htm 

excerpt

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WHY USE A SUPPLEMENTAL NEEDS TRUST?

To Preserve Governmental Benefits And Protect Assets...

A Supplemental Needs Trust (sometimes called a Special Needs Trust) is a specialized legal document designed to benefit an individual who has a disability. A Supplemental Needs Trust is most often a "stand alone" document, but it can form part of a Last Will and Testament. Supplemental Needs Trusts have been in use for many years, and were given an "official" legal status by the United States Congress in 1993.

A Supplemental Needs Trust enables a person under a physical or mental disability, or an individual with a chronic or acquired illness, to have, held in Trust for his or her benefit, an unlimited amount of assets. In a properly-drafted Supplemental Needs Trust, those assets are not considered countable assets for purposes of qualification for certain governmental benefits.

Such benefits may include Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, subsidized housing, and other benefits based upon need. For purposes of a Supplemental Needs Trust, an individual is considered impoverished if his or her personal assets are less than $2,000.00.

A Supplemental Needs Trust provides for supplemental and extra care over and above that which the government provides.

Supplemental Needs Trusts had been used for years based upon case law. In 1993, Congress created an exception under the amendments to the Omnibus Budget and Reconciliation Act (OBRA-93) which specifically authorized the use of Supplemental Needs Trusts for the benefit of individuals who are under the age of 65 years and disabled according to Social Security standards. The Social Security Operations Manual authorizes the use of Supplemental Needs Trusts to hold non-countable assets.

Each Supplemental Needs Trust is its own "entity" with its own Federal Identification Number (Employer Identification Number) issued by the Internal Revenue Service. The Trust is not registered under either the Grantor's or the Beneficiary's Social Security Numbers.

According to Congress a Supplemental Needs Trust must be irrevocable. A properly-drafted Trust will include provisions for Trust termination or dissolution under certain circumstances, and will include explicit directions for amendment when necessary.

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Horse:

Self employed SGA is based on net pay after deducting for business expenses. Employed people are gross pay.

So if you earn a fee of $3,000 but it costs you $1,800 to earn the $3k then you netted $1,200 as SGA.

 But note:  $1,000 is the line where SSA considers over that amount SGA...but it does not bar them from conisdering amounts below that.  So making $990 is no guarantee that SSA won't can't rule that SGA.

Better to focus on the amount that is below the trial work period amount and stay under that.

Here is a link to the most plain language description.

 https://secure.ssa.gov/apps10/poms.nsf/lnx/0410510012

Steven

Medigal/Chick

I am not a trust wills attorney but I am pretty sure that you can create a special needs trust that becomes active upon flying away as you put it.

The special needs trust is only needed when the person themselves ha the assests.

Example:  Let us say a A very wealth couple passes away without a will or anything.

An estate worth $1 million goes to thier only chiold who is an adult disabled and getting SSI.

HE gets a letter from SSI stopping his benefit becaus ehe has too much money.

makes an appoitnmetn to come see me...I send him on to the trust/wills attorney who I know can handle this and in a few weeks the trust is up and running.

I write SSA show them the documents and in a month maybe 2 SSI beenfits start again.

Think if you remeber of the movie with richard pryor Brwester Millions.  SSI is like that.  You lose SSI ONLY for those months you have too much. SPend it quick or get it into a special needs trust and you are back on it.

So having an attorney create the trust documents..and then leave insturctions in your will for the executor of your estate to activiate the special needs trust upon your death ASAP so that SSI does not stop or if it does it is only one month.

But again this is not legal advice...just something for you to start a conversation with a trust/wills attorney. Soemtimes the hardest part of dealing with these issues is just knowing what quesitons to ask.

Medi:

One thing you might want to do is talk to a wills/trust attorney about setting up a special needs trust or soem other trust that could maximise your ability to receive medical with minimum out of pocket expense.

Not sure if it can be doen or would be right for you.  But never hurts to ask.

Steven

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