SSI, Settlements/Inheritance, and Special Needs Trusts
Here is a popular question:
I’m on SSI, do I have to tell Social Security about an inheritance/settlement I am getting?
The answer is simple:
YES!
There is no point beating around the bush with this one. If you are on SSI and “come into money” whether it is a gift, inheritance or settlement (or through whatever means), you need to notify Social Security.
Supplemental Security Income (SSI) is a “needs-based” program. You only get it if you do not have money coming in from other sources. So, if you suddenly get some money, your benefits may be reduced or even cut off.
Even worse for some people is the potential loss of Medicaid.
Supplemental Security Income (SSI) or Social Security Disability Insurance Benefits (DIB)?
Social Security has two different benefit programs for individuals who are disabled.
Disability Insurance Benefits (DIB, also known as SSDI, or Title 2 benefits); and
Supplemental Security Income (SSI or Title 16 benefits).
Because of its name, it is a common misconception that must apply for “Disability Insurance” if you are disabled. Actually, both programs provide disability benefits.
What is Disability Insurance Benefits (DIB)?
Generally, Disability Insurance Benefits are based on your payroll contribution to Social Security. To qualify for DIB, you have to have earned enough Social Security credits, in the right time frame, by paying into Social Security through payroll taxes.
There are several circumstances in which you may not have enough credits for Social Security Disability Insurance:
Social Security denial because husband or wife makes too much for SSI disability
Here is a common problem. You apply for Supplemental Security Income (SSI), but then Social Security tells you that your spouse is making too much money for you to be eligible.
How much is too much?
It was surprisingly difficult to track down an answer. But, at long last, I was able to find out that in order to be eligible for Social Security your countable income has to be less than the Federal Benefit Rate (FBR). According to Social …
I won my SSI case, now Social Security want to pay me in installments?!?
A lot of things happen after you approved for Supplemental Security Income benefits.
First, Social Security needs to review your financial eligibility.
Second, Social Security must reimburse the State for any interim assistance you received while waiting for your SSI decision. In Colorado, the interim assistance program is called Aid for the Needy Disabled (AND). This means that if you received AND and won your Social Security SSI case, Social Security will first repay the Department of Human Services (Department of Social Services).
Third, Social Security pays out your back benefits in installment payments.
How much can I get per month on SSI?
Updated: 01/01/12.
Supplemental Security Income, SSI for short, pays up to the Federal Benefit Rate (FBR).
For 2012, for the first time in 3 years, the Federal Benefit rate is increasing to $698 and $1,048 for couples. For most people, this means the maximum SSI benefits you can get in 2011 is $698 per month.
in 2011, the FBR was $674 per month.
In 2010, the FBR was $674 per month
In 2009, the FBR was $674 per month.
In 2008, the FBR was $637 per month.
In 2007, the FBR was $623 per month.
The current FBR rate is listed …
