June 2022 – By Tom C. Rueger, J.D., CFP^®

A recipient of Supplemental Security Income (SSI) is eligible to receive a monthly benefit when the Social Security Administration (SSA) determines that the recipient’s “income and resources” fall below certain limits. Funds held in certain kinds of Trusts (Special Needs Trusts) can be used to supplement, but not replace, the basic support that Medicare and SSI can provide to a special needs person. If drafted properly, funds in a Special Needs Trust can be specifically excluded from consideration of the “income and resources” limit that determines the eligibility for SSI, thereby allowing a special needs person to receive Medicare and/or a monthly SSI benefit. In other words, a Special Needs Trust is a method to shelter assets to ensure that government support is not lost or forfeited.