Will income from a trust affect my SSDI benefits?

If you are a Social Security Disability Insurance (SSDI) recipient and receive an inheritance, it will not affect your benefits. SSDI is not a needs-based program and is not contingent upon your unearned income—including inheritance. Any income, earned or unearned, can affect your benefits.

What can my special needs trust pay for without affecting my disability benefits?

Therapy or rehabilitation services. Training and education. Travel, which can include the cost of a companion….And here are some things a special needs trust can spend money on that you may not have thought of:

• a car.
• a ride share membership (Uber, Lyft, etc.)
• a bus/rail pass.
• a vacation.
• a home.
• help with starting a business.

Do you need a special needs trust for SSDI?

SSDI is not a needs-based benefit. If you are on that program for two years, you will also qualify for Medicare. 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,…

How does HUD determine eligibility for a special needs trust?

In calculating a recipient’s income to determine program eligibility, the Department of Housing and Urban Development (HUD) counts pensions, annuities, alimony, certain welfare payments and Social Security and disability payments, as well as the income generated by assets in excess of $5,000.

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.

Can a third party special needs trust be created?

For more information, see Nolo’s article on pooled Medicaid trusts. Unlike the first-party special needs trust, which is created only with the Medicaid beneficiary’s own assets, a third-party special needs trust is created with assets of family members or other relatives or friends.