Trust Fund

Submitted by Anonymous (not verified) on

Hello.

I have a 34 year old son who lives with me. He has been diagnosed with ADHD, Tourettes and Asperger Syndromes. Therefore he cannot work and I managed to get him SSI and Medicaid earlier this year. He currently gets about 500.00 a month from SSI and after I take about $200.00 per month off for his living expenses I find I have $300.00 to try to find something else to use it on since he cannot have anymore than $2000.00 in the Rep/Payee account I've set up for him. I also use some of the money for clothing and entertainment and I'm considering an online trade school course for him which would use a bit more of his monthly allotment. But even with that, I'd still have too much left over and the account would eventually exceed the $2000.00. Some people I know have suggested using what is not needed at the end of the month to put it into a trust account for when he is older and I am not here anymore. Can anybody give me more insight/information on that? I don't want to lose his SSI or Medicaid because I really need it for him but I'm running out of ideas to spend the excess on every month. The trust fund seems like a good idea expecially for his future when I will not be here to take care of him. Also, might there be a way I could ask SSI to reduce what he gets per month without completely cutting it (and the Medicaid) off.

Thanks

Jay Bee

Wed, 11/11/2015 - 09:50 Permalink

Hi Jay,
What you need to do is set up a trust fund under the ABLE act. It will allow you to deposit up to $100,000 of non-taxable funds for someone receiving SSI benefits. Some states allow you to save up to $300,000. These funds will NOT disqualify an SSI recipient. Most states have enacted the ABLE act now or by the end of the year, so you'll just need to contact your local SSA office to discuss your options.

Jay Bee (not verified)

In reply to by Deanna

Wed, 11/11/2015 - 18:36 Permalink

Thanks so much, Deanna!

I just checked and it looks like it wasn't passed yet in my state, but it being considered. Will this allow me to transfer some of his funds from his SSI account? What I've read only says that a savings account could be established. It doesn't say whether it could be taken from the recipient's SSI account.

Deanna

In reply to by Jay Bee (not verified)

Thu, 11/12/2015 - 12:59 Permalink

Hi Jay,
I am actually not sure about this! I've looked up a bit and cannot seem to find a solid answer. I would maybe try calling your local SSA office and finding out--they'll be easier to reach than the national hotline.

anon (not verified)
Wed, 12/23/2015 - 16:06 Permalink

I tried to find instructions on the funding source of ABLE accounts. It makes zero sense to me that SSI funds could or should be used to fund ABLE accounts. I think ABLE was designed so that SSI children/adults with middle or high income/asset families could have more money saved than SSI children/adults from low income families. It allows the middle/high income families to transfer their money to their children and let the children still get the public assistance benefits that were originally designed to help low income disabled. It is a have a cake and eat it too provision.

Now I think the $2000 limit is too low and hasn't been upped in decades. Most SSI recipients live check to check though.

If the original poster wants SSI to be lowered because there is no need for the additional money, he/she can tell SSI that the child is getting another income source of say $200 a month and SSI will go down $200. Will save the taxpayers money.

If the SSI is not needed, the government shouldn't be paying it out. The US has enough deficit spending as it is.

Deanna

In reply to by anon (not verified)

Tue, 12/29/2015 - 09:23 Permalink

Hi there,
I am not sure that you can put your monthly SSI funds into ABLE accounts...I think it is only for friends and family to contribute to.

suzanne btosnan (not verified)
Wed, 05/04/2016 - 11:47 Permalink

Can you pay off debt (credit card) for a person receiving SSI without jeopardizing their SSi?

Deanna

In reply to by suzanne btosnan (not verified)

Wed, 05/04/2016 - 13:26 Permalink

Hi Suzanne,
You might be able to! It would depend on how much in assets a person has at once. If you give this person more than $2,000 to pay off the debt, then he/she will not be eligible for SSI benefits. If you pay the debt yourself and the person on SSI never sees the income themselves, then they should be fine.

terri (not verified)
Tue, 12/27/2016 - 18:28 Permalink

I have a child that is an adult and I usually spend most if not all of his ssi on his needs. I have saved some money so that I can purchase him some furniture for him and a tablet so that he can continue to become more independent within the community. My question is " Do i need to ask SSI if i can make these more expensive purchases" I am his payee

Bryan

In reply to by terri (not verified)

Wed, 12/28/2016 - 11:57 Permalink

Hi Terri,
You may not be required to do so, but when in doubt it's a good idea to contact the SSA regarding any purchases so that you are in compliance with their guidelines.

Seriously (not verified)
Sat, 03/25/2017 - 07:51 Permalink

Can having a savings account effect receiving any benefits?

Eric

In reply to by Seriously (not verified)

Mon, 03/27/2017 - 11:17 Permalink

Hello,

It wont affect you if you are applying for SSDI benefits, however it may affect you receiving SSI benefits.

Best Wishes,
Eric

mamma (not verified)
Fri, 08/04/2017 - 14:33 Permalink

when a child reaches 18 not in school and is receiving SocSecn benefits under parents disability does parent then receive that childs benefit

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