SSD/SSI,Trusts and Inheritance - Disabilities Message Board

Lotus_Blossom · 03-06-2008, 08:00 PM

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!

Executor · 03-06-2008, 08:53 PM

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

Lotus_Blossom · 03-06-2008, 10:12 PM

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?

Executor · 03-08-2008, 12:44 AM

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

feelbad · 03-08-2008, 02:53 PM

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