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Old 03-06-2008, 07:00 PM   #1
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SSD/SSI,Trusts and Inheritance

Hello,
I have a very important question.I am keeping Fingers crossed someone can answer.I apologize if this is an inappropriate place to post,but thought since it is Disabilities I might could get the answer I need.How much income can an individual receiving SSD/SSI (majority of income SSD) receive from a Trust and not lose Medicare/Medicaid eligibility?How about assets and SSD/SSI?To my knowledge a Person can own 1 Home,1 Vehicle and can have up to $2,000,but I'm unsure about Trusts/Inheritance/Assets and SSD/SSI.

Thank you in advance for any help!

Last edited by Lotus_Blossom; 03-06-2008 at 07:01 PM.

 
Old 03-06-2008, 07:53 PM   #2
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Re: SSD/SSI,Trusts and Inheritance

As far as Social Security disability, the only condition is that you aren't "working." You can actually work once approved as long as it's not over some pre-set threshold amount (it's on the SS site) and their is a pamphlet on the subject. Make sure you completely understand it because it will disqualify you in a heart beat if you make more than the permitted amount. it's a little confusing, so study it...Or get some help if you need to.

As far as "unearned income" such as investments, interest, & etc., it doesn't qualify as far as I know. When I was approved, I had significant income that showed up from a prior year for sales incentive/bonus (earned before I quit working, but paid after), and I just explained it to the ADJ judge and he said it was absolutely no problem.

Also, at a later time, I sold some stock options that I had earned many years prior, so my taxes reflected income via a W2. About 2 years later, SS sent me a letter wanting to know why my taxes reflected W2 income yet, I was on SSD. I sent them back a letter with a copy of my options being sold and I never heard anything back. I assume it was ok because nothing was ever interrupted.

Not sure about SSI, but I believe it's tied to total family income, so any of the above (or a trust) would impact that.

Once you qualify for SSD, you then automatically qualify for medicare, although there is some predetermined waiting period. Medicare isn't tied to income, except in that your monthly premium is determined by your SS amount...The more SSD you draw, the more your medicare premium is.

Hope this helps.

Ex

 
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Old 03-06-2008, 09:12 PM   #3
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Re: SSD/SSI,Trusts and Inheritance

Executor,
I am not working and earning Money to supplement my income.My Father died and I'm his only Heir and sole survivor of my immediate Family.My Inheritance is being set up in a trust,however it doesn't have my name on it.My Father's Attorney told me my Inheritance is passive income,so it shouldn't affect my SSD.SSI now that's another story.I receive a very small amount of SSI,so really it's not worth the hassle I go through with my local DHS Office keeping it.I don't know why,but after I started receiving SSD I was automatically given SSI/Medicaid instead of offered SSD/Medicaire and Plan D.I really want Medicaire and Plan D.I'm not sure how to go about filing for it,or when to file.A Sister Friend told me the Month of my Birthday.After my Father's Estate is sold and the Money placed into trust there shouldn't be any assets.I would just have extra Money.Probably enough to supplement my income up to $2,000 Monthly.How do Trusts work?Can only an alloted amount be given annually?

 
Old 03-07-2008, 11:44 PM   #4
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Re: SSD/SSI,Trusts and Inheritance

As I said, I don't think trusts count towards SSD. Your attorney is correct about "passive income." I call it "unearned income" which is the term the IRS uses. Unearned income is any income you didn't earn...i.e work. Unearned income is investments, interests, stock, trusts, capital gains, & etc. You'll probably lose your SSI because it's based on "need" or total family income, which factors in those items above. However, SSD is based on your ability to work. So, for example, if you can't work and qualify for SSD, you can be awarded benefits even though your spouse makes a good living in his/her job. This "total or family income" would disqualify you for SSI. Your extra income from the trust will be treated the same way (I think).

Once you are awarded SSD, then after some waiting period, you automatically qualify for Medicare and Part D. They gave you SSI & Medicaid because you qualified for it based on "need" or income. I think it's actually better because you hardly pay anything and the drugs are practically free. On Medicare, it's the same policy as those who retire at age 65....You pay a monthly premium for the Medicare and another one for Part D....Then you pay co-pays at the Doc office and pharmacy...Just like a regular insurance policy.

You need to find out exactly how all this effects your case. I'd try to find some resource in your area...Maybe go to the local court house, or county gov't office and ask if there are any support people or volunteers who can assist. Or, have your trust attorney refer you to a disability attorney and he/she could help.

Good luck.

Ex

Last edited by Executor; 03-07-2008 at 11:47 PM. Reason: clarification

 
Old 03-08-2008, 01:53 PM   #5
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Re: SSD/SSI,Trusts and Inheritance

this wouldn't effect your SSD,BUT it WILL effect your SSI.you are right about the 2,000.we just went thru this with our son and him being on ssd and trying to get him on SSI.the fact that my father has a trust in his name kind of screwed things up for him.we were told by the SSI lady that he had to spend it down in order to even begin to qualify for SSI.one thing he had was in a trust with my now deceased father in charge of the other was an acct in some type of a money market acct that he had also set up for him but was now in my sons name only.neither one was "allowed" if he had any chance of actually qualifying for SSI(except of course the 2,000).

when my father passed away last year and had many different types of assets all in what was our family name 'trust" when my sister and i went to speak with the guy in charge of this,he did a double take when i mentioned i was on SSD and quickly asked if i was also on SSI,which i never ever could have qualified for.he kind of let out a whew and said if i had been on SSI we were looking at a whole lot of possible problems with my inheritence vs SSI.so i guess that was lucky for me.i really do think if you are on SSI now,it could pose some big issues for you if you actually want to try and stay on it.i really think you may lose it(the SSI).this all just from my personal experiences with qualifying and what i know from what happened last year.you may want to consult an attorney who your father may have been using at some point or someone who is actually in charge of the overall assets for him and see what they recommend.he must have some level of financial advisor he went to?you could also just call SSI and ask for certain what the criteria actually is,but i am pretty sure it is the two grand limit as far as having any resources.good luck with this.Marcia
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Old 03-12-2008, 09:36 AM   #6
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Re: SSD/SSI,Trusts and Inheritance

Executor and feelbad,
Wanted to quickly post an email I received from my Attorney this Morning.When I have more time I will come back and reply your replies.He said my SSI is reduced by $0.50 for every additional dollar I receive.Because I receive $36.00 a Month from SSI he thinks I can receive $70.00 per Month from a Special Needs Trust and still receive about $2.00 per Month from SSI which would keep me eligible for my Insurance and Medicaid.I am really feeling that for some reason they aren't wanting me to receive jack $hit from my Inheritance.If I were to do it the way he mentioned I wouldn't have much Money to survive on each Month.I don't see why I can't drop SSI,pick up Medicare and Plan D and receive $1,351.00 Monthly from my Inheritance to add to SSD to = $2,000.

 
Old 03-13-2008, 03:04 PM   #7
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Medicaid/Medicare

I told my Attorney in email what I want in the matter of my Father's Estate and the Trust.I received a reply..he asked how do I not lose Medicare?He talked with DHS and believes that if I lose my SSI I will no longer qualify for Medicare.I was of the impression Medicare was through Social Security Administration and had absolutely nothing to do with SSI or Medicaid.

 
Old 03-14-2008, 12:07 PM   #8
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Re: SSD/SSI,Trusts and Inheritance

are you actually on ssd? if you are,you would still qualify for the medicare part thru that. this is where my medicare comes from. i am just wondering since actually being on SSi really doesn't appear(just from what you have stated anyways)to really be "giving' you all that much? you may be better off,inheritance wise depending upon just how much you would actually be getting from that inheritance,in just going off SSI,getting the inherited amount every month and if you are actually on SSD,you would still be able to utilize medicare. you know what i mean? i think sitting down with that lawyer or whoever else in in carge of your dads affairs and really looking at the plus vs loss things involved here in doing things a particular way,may just show you the right thing to do. it all kind of depends upon just what ways would benefit you the most. hopefully you will just kind of "hit' on the best possible way to go doing things this way. i do wish you luck. please keep me posted. Marcia
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Old 03-14-2008, 06:16 PM   #9
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Re: SSD/SSI,Trusts and Inheritance

I think you're attorney is wrong. As feelbad says, Medicare and schedule D automatically comes from SSD, after the waiting period of course. SSI and medicaid are for those who qualify based on "family income." If you receive SSD, you receive Medicare and schedule D, assuming you want it of course.

Call SS yourself.

Ex

 
Old 03-15-2008, 12:18 AM   #10
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Re: SSD/SSI,Trusts and Inheritance

Feelbad,
Yes I receive SSD.Most of my income is working from age 16 and paying Social Security into SSA.I waited 2 Years for Medicare.I have Part A and part B Medicare.I'm sure I picked up the little amount of SSI due to the fact I wasn't Married when I was approved for SSD,so it is to supplement my SSD since there wasn't other household income.See what you suggested is what is "screwing" my Attorney up.For some unknown reason he is of the impression when I lose SSI I will also lose Medicare.I've tried to tell him Medicare is SSA and not DHS.He obviously doesn't want me to benefit for the better.He is cramming SSI and Medicaid down my Throat when I would be better off to drop it,pick up plan D through Medicare and receive more Inheritance because it won't affect my SSD.He suggested I keep SSI even though it would drop down to $2 per Month and receive $70 per Month Inheritance from a Special needs Trust.NO!

Last edited by Lotus_Blossom; 03-15-2008 at 12:19 AM.

 
Old 03-15-2008, 12:25 AM   #11
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Re: SSD/SSI,Trusts and Inheritance

Executor,
Yes my Attorney is wrong.You and Feelgood are correct.Medicare and Plan D comes automatically after 2 Years,however an individual must make claim once per Year for plan D as it isn't automatically given.The problem is I receive both SSD and SSI and have Medicare (Part A and Part B) and Medicaid..what I should have done,but didn't is filed for Plan D long time ago..just haven't yet..

Also want to ask..the only way I will lose SSD and Medicare is if I return to Work or upon completing my Education and obtaining a Job..right?

Last edited by Lotus_Blossom; 03-15-2008 at 12:38 AM.

 
Old 03-15-2008, 11:01 AM   #12
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Re: SSD/SSI,Trusts and Inheritance

Personally I'd find a new attorney he doesn't know what he's talking about, sorry. He doesn't seem to be educated in the SS laws. You can research this information on your own quite simply on the SS web site.

You get Medicare part A after being on SSDI for a period of 2 years. Part B and Part D are paid for premiums that you have to request. Some states however do have some different laws regarding it.

if I were in your shoes, I would talk to SS themselves, and see if there is a way to terminate teh SSI without terminating the SSD. I think based on the income alone it would nullify it, the SSI that is. It should not impact your SSD at all since you are not gainfully employed.

SSI is intended for those who do not have enough work credits and have a low monthly gross income. Because you are getting monies from your fathers estate, techincally you should not qualify for it at all.

Again, if you've been on SSDI for at least two years you still are eligible for Medicare, you will not lose it, but you do have to pay for part B and Part D. The currently montly rate for part B is 90 a month I think, part D depends on who you pick up as your provider. For those who never had part B but have been on SSD for over two years that amount has a multiplier added to it for each year you did not pay for Part B. It is utterly confusing but that should not affect you since it seems you've been on it from the start.

The only way to lose your SSDI is to return to work, in which you still get a one years credit while working under their Ticket to Work program which is a whole nother ballgame or if you are found no longer disabled or if you end up in prison.
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Old 03-15-2008, 04:22 PM   #13
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Re: SSD/SSI,Trusts and Inheritance

Kissa,
Since my Father's death I've had a helluva lot of problem with his Sister and Sister in-law both Executors of his Will.I hired this Attorney as my Counsel to help me not work against me in their favor.He is dead set on my not losing Medicaid and only being allotted a very small portion of my Inheritance just because those 2 Women influenced my sick and grieved Father into believing I can't properly handle or manage what he bestowed me.I won't have it..I know my rights and what I'm entitled to whilst receiving SSD..I won't take any less..

I really don't understand what you mean by Part B as paid premium when I automatically received Part B with Part A 2 Years after I started receiving SSD.I have yet to make claim for Part D..

I've always thought SSI is supplemental and isn't permanent.Won't I lose SSI/Medicaid when I get Married?

A Woman at SSA told me the number of quarters I worked and said they are good for someone my age.When I begin receiving my Inheritance I will lose SSI,but for some reason my Attorney is breaking his Neck to prevent me from losing SSI..$2 per Month isn't worth the hassle when I can keep SSD (biggest portion of my income),Medicare,pick up Plan D and receive more Inheritance.

I've received SSD since late 1997..I picked up Medicare in 1999..I've tried until I'm red in the Face to tell him I will NOT lose Medicare.If he is trying to "trick" or fool me into believing this $*%! he best stop!

 
Old 03-15-2008, 08:55 PM   #14
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Re: SSD/SSI,Trusts and Inheritance

Quote:
Originally Posted by Lotus_Blossom View Post
Executor,
Yes my Attorney is wrong.You and Feelgood are correct.Medicare and Plan D comes automatically after 2 Years,however an individual must make claim once per Year for plan D as it isn't automatically given.The problem is I receive both SSD and SSI and have Medicare (Part A and Part B) and Medicaid..what I should have done,but didn't is filed for Plan D long time ago..just haven't yet..

Also want to ask..the only way I will lose SSD and Medicare is if I return to Work or upon completing my Education and obtaining a Job..right?


SS has very specific rules on working....There is actually a brochure on the subject and info can be found at their office & on their site. Essentially, it works like this:

Once on SSD, you have what they call a "trial work period." There is no limit to what you can make during this trial work period. SS will keep track of how many months (out of a 60 month rolling time period) where you make @ least $670 (in 2008). After 9 month periods, you then have what they call an "extended period." At this point, you can work, as long as you don't make more than around $900 per month, or what SS calls "substantial" pay. If you make more than $900 @ any time, your pay is forfeited for the month. I'm not sure how many months you can go over and still keep SSD. Even if you lose SSD due to work, you can keep Medicare for up to 93 months (I think). If you never reach the first 9 month period (of pay @ least $670), then you never reach the "extended period." It's important to note that each year, the maximum amount is raised a little bit....For example, it went from $640 to $670 from 2007 to 2008.

As you can see, this is very complicated and I would go to your nearest SS office and set up an appointment for someone to go over all of this with you so that you understand exactly what you can and can't do. It's too important to of an issue to potentially lose your much needed benefits.

Hope this helps.

Ex

 
Old 03-16-2008, 05:57 AM   #15
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Re: SSD/SSI,Trusts and Inheritance

Thank you EX. Your replies are not only informative but are so right on ! Sounds like you should be working for them or something. This board is so helpful. I'm very proud to be here and hope someday I'm in a position to help people on this board like you, Queenee and the other vets !

 
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