SSDI is not a needs-based benefit. Because SSDI is not needs-based, a special needs trust is not necessary to qualify for it. However, depending on how much SSDI is paying you, you may also qualify for Supplemental Security Income (SSI) or you may qualify (or already qualify) for Medicaid.
Can a person on disability have a trust fund?
Individuals with a disability can still qualify for SSI if there is an SSI trust that holds funds for their benefit. Supplemental Security Income, or SSI, as it is commonly referred to, is a federal disability benefit. Folks who are eligible for SSI benefits include those who are over 65, blind, or disabled.
Can a special needs trust be used for Medicaid?
Only resources can be placed in a special needs trust. A Medicaid beneficiary’s income can be placed only in an income trust for Medicaid qualification purposes (also called a Miller Trust or Qualifying Income Trust); for more information, see our article on qualified income trusts for Medicaid.
What happens when I also have special needs?
In such a case, the trustee appointed will manage the money in a special needs trust for them. Setting up a first-party special needs trust is a great thing to keep in mind. These trusts hold your assets. Only a parent, grandparent, guardian or court can set the trust up on your behalf.
What happens to money left in special needs trust?
Upon the death of the individual, any balance left in the trust must be paid back to the States in an amount not to exceed the Medicaid benefits paid on behalf of the individual. Any remaining Trust assets would pass according to the Trust (i.e., family members of the beneficiary).
What is a self settled special needs trust?
“Self-Settled” Special Needs Trusts Some trusts are established by the beneficiary (or by someone acting on his or her behalf) with the beneficiary’s funds for the purpose of retaining or obtaining eligibility for public benefits—such a trust is usually referred to as a “self-settled” special needs trust.
