Latest Updates on Special Needs Trusts and How They Can Affect You!

New SSI Update:

The Social Security Administration has updated its rules, effective September 30, 2024, regarding counting the value of food given to an individual who receives Supplemental Security Income (SSI).  ‘In-kind support and maintenance (referred to as ISM) previously included ‘food’ and ‘shelter.’ Now, the value of food no longer reduces an SSI recipient’s monthly benefit amount. Read the SSI Spotlight on the one-third reduction provision

https://www.ssa.gov/ssi/spotlights/spot-one-third-reduction.htm

The Social Security Administration has also issued updates on its policies regarding rental subsidies. Individuals who receive SSI will face no further consideration by the Social Security Administration or reductions in their SSI payments as long as the amount of rent they pay equals or exceeds the Presumed Maximum Value or PMV.

Qualifying for SSI:

If you know someone who has a disability and has not met the requirements to obtain Social Security Disability benefits (40 credits, which means you worked 10 consecutive years and payroll taxes were remitted to the federal government), they may qualify for SSI. In addition to having a qualifying disability, the individual must have no more than $2,000.00 in countable resources.  Certain assets do not count, such as a home, a car, and certain funeral expenses.  Bank accounts and investment accounts are countable resources.  The individual must also have a low income (currently less than $967.00).  Income includes wages, child support, alimony, and long-term disability benefits.

SSI Representative Payee:

When an individual is approved for SSI, they will receive a monthly payment.  This payment can be directly deposited into a bank account or electronically deposited onto a debit card.  If the individual is not able to handle the SSI benefit, then a trusted person can apply to the Social Security Administration (SSA) to be appointed as the ‘Representative Payee.’  The Representative Payee is responsible for receiving and using the SSI benefit to care for the SSI recipient.  The person applying to be a Representative Payee must be financially responsible. The Representative Payee will report to SSA on an annual basis as to how the monies were spent. A court-appointed Guardian can be a representative payee.

SSI Entitles You to Medicaid:

Once a Florida resident is approved to receive SSI, they will automatically be entitled to basic Florida Medicaid benefits.  The individual does not need to file an application with the Department of Children & Families (DCF) to obtain this Medicaid benefit.  It happens automatically.  This will allow the Medicaid recipient to be seen by doctors who accept Medicaid assistance.  When scheduling a doctor appointment, be sure to ask whether the doctor accepts Medicaid.

Maintaining SSI-Medicaid Benefits:

In order to maintain the SSI-related Medicaid benefits, the individual must receive at least $1.00 of SSI. If the SSI recipient is receiving in-kind support (e.g., free room and board), that will count against the person, and the SSI benefit will be reduced. Be careful because if the benefit goes below $1.00, the individual will lose Medicaid benefits.

Once a year, the SSA will ask the SSI recipient to complete a form to verify that they still meet the financial eligibility requirements. It is very important that the SSI recipient respond timely.  If the SSI recipient does not respond or does not call SSA and ask for an extension of time, SSA could terminate SSI benefits (which would then terminate Medicaid benefits).  So complete the form (or do it online) timely.

Getting correct and complete legal advice is an investment in your future and your care. Do it right the first time by partnering with a Board-Certified Elder Law Attorney.

I work with clients living in Florida, and I can meet with them in person or via video conference. If you are reading this article/blog and don’t live in Florida, contact the National Academy of Elder Law Attorneys (www.naela.org) to find an elder law attorney in your locale and give yourself and your family the gift of peace of mind.