This month Morton Elder Law is focusing on the most frequently asked questions related to Special Needs Planning. Last week we covered the different forms of Special Needs Trusts available. This week, the focus is on Social Security Disability Benefits, and how a special needs trust can benefit your child with special needs.

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Question:

If my child is receiving Social Security Disability Benefits (SSDI), is it still necessary for me to leave their inheritance in a Special Needs Trust?

While it isn’t necessary, it is very well advisable to leave your child’s inheritance in a special needs trust if your child is receiving social security disability benefits.

The reason it is not necessary to leave their inheritance in a special needs trust, is because Social Security Disability Insurance (SSDI) benefits are not means tested. (For example, if a person inherits one million dollars, they will still get their disability kit.)

However, putting their inheritance in a special needs trust will most likely still work in your child’s favor.  Here’s why:

The fact that your child is getting SSDI means that they have some form of disability. If that disability progresses or gets worse, they may need additional public benefits (such as nursing home care). This required later benefit could very well be a means-tested public benefit, such as Medicaid.

If that is the case, then the inheritance that went directly to the child that didn’t impact SSDI would disqualify them for Medicaid benefits.

Setting up a Special Needs Trust is simply the best way to guarantee you and your child are given the best protection and care, both in the present and the future.

It’s most advisable to put an inheritance in a Special Needs Trust, to ensure that they will have the benefits they deserve for the entire time they will need to utilize them.

For more facts on the partnership between disability and social security in the United States, check out the Social Security website.

Trust a Professional!

While we’re happy to offer free resources online regarding Special Needs Planning, it is important to note that every family’s circumstances will vary. The best way to ensure that you’re making wise financial choices is to seek the counsel of a professional, budget permitting.

Morton Elder Law recommends a customized plan that’s proactive — meeting your family’s needs with great intentionality and care.

Call Morton Elder Law today at 866-925-9797 to find out more.