SSI Medicaid Benefits

By Steven J. Gibbs, Esq.

Hello Friends & Colleagues!

Here at Health & Wellness, it is Disability Awareness Month.  In the Elder and Medicaid Law arena, we see a fair number of cases where folks are receiving “Social Security Disability” benefits and they are concerned that a receipt of a lump sum money will disqualify them.  In many cases, their concerns are correct…

The first critical question when examining whether someone may be disqualified from Social Security Disability or Medicaid benefits is what type of disability assistance are they receiving?

Certain types of benefits are not subject to disqualification, whereas other types are based upon need (“need based”) and are therefore vulnerable to disqualification if one receives money or assets.

So, if one is receiving “need based” or “means tested” disability assistance then certain financial events can disqualify them from public assistance.  There are 3 sure fire ways to lose benefits if unprepared in these circumstances…and this is the subject of this week’s fated article.

The 3 “Sure Fire” Ways To Be Disqualified From Social Security Disability Benefits, Only Apply If The Individual Is Receiving SSI verses SSDI?

SSI is a need based “means tested” program that requires a minimum amount of assets to qualify, so any distribution of additional assets can disqualify the individual.  SSDI is not need based, but is based upon amounts paid in and the inability to continue working and this is not affected by the receipt of additional assets.

With That In Mind, The Three “Sure Fire” Ways to Lose Your SSI Benefits If You’re Unprepared Are:

1.  Receipt of Personal Injury Settlement or Other Amounts Received From a Legal Judgment.
Legal judgments are generally paid in either a lump sum or a series of payments over time.  The key is that they are paid to the individual and this will result in funds in excess of asset limit.

2.  Receipt of Inheritance or Bequest from an Estate.
Likewise, the receipt of an inheritance is generally an asset or sum of money and the same result can apply to disqualify the individual from SSI benefits.

3. Receipt of Equitable Distribution, Alimony and Child
Support.
Surprisingly, funds received for Child Support, although they are for the benefit of the children, are not exempt from the SSI requirements and can still disqualify the individual from SSI.

This issue’s topic is critical because the loss of SSI benefits can trigger a chain reaction and also jeopardize the receipt of certain Medicaid benefits which may have been awarded based upon the receipt of SSI benefits.

The Solution to Prevent Disqualification From SSI and also Medicaid Benefits is often a Special Needs Trust.

Special Needs Trusts (“SNT”) have evolved under the ACA (“Affordable Care Act”) and this planning continues to change with the times.  Experienced Elder Law Attorneys, follow the rules and changes closely and often the decision whether to utilize a Special Needs Trust, or an alternative approach, will depend upon the specific circumstances in the client’s life situation.   I addressed SNT basics in a recent blog article at http://www.gibbslawfl.com/blog/.

This is an appropriate time for a reminder of how sophisticated this type of planning is, and should only be attempted with the assistance of an experienced Elder Law Attorney.  There are numerous Social Security rule requirements, different types of SNTs, and other options to be considered.

The important thing, is to plan ahead before receiving any lump sum of money because in most cases, measure can be taken to preserve your assets and keep you or your loved one qualified for SSI/Medicaid or both.
As always, I hope this is helpful and…

Until next time.

Steven J. Gibbs, Esq.

Steven Gibbs founded the Gibbs Law Office in January 2009, committed to providing client-centered legal services.
Steve as he would rather be called, is not your typical attorney.  If you appreciate the staunch egotistical mannerism of most firms, you will be delighted with Steve’s unpretentious approach to educating and then assisting his client.  Instead of giving you his complacent and lofty ideas, he would rather pursue your expectations with professional conversation about resolving your concerns under the Law.  It’s your life and it’s his job to make your legal expectations come true while using years of his guidance and knowledge.

Steve was admitted to the Minnesota Bar in 1999, the Florida Bar in 2007 and was recently admitted to the California bar. Keeping abreast of law changes in these three States, as well as the United States, assists him in all aspects of the types of law the firm practices.

Along his career path, he was an associate attorney for an insurance defense law firm; an in-house real estate negotiator for Target Corporation; and corporate counsel for Civix, LLC and Vice President for North American Properties where he was responsible for various real estate transactions, including legal issues and negotiating unresolved business issues.  Prior to opening Gibbs Law Office, PLLC, he was an associate with the firm of Roberts & Engvalson, P.A. where he gained his knowledge of trusts, estate planing and Wills.  He opened his own firm in 2008 and now focuses on laws that will enrich the needs of his clients throughout their lives and those of their children.  The firm has developed a practice dealing only with Trusts and Estate Planning, Wills, Medicaid Planning, Elder Law, Real Estate, Business Law and Probate.

Quoting from Steve “I decided to practice in areas that families will need as they progress down life’s path.  To help them with a solid foundation that will carry them throughout there lives is a rewarding experience for me and my staff.”

8695 College Parkway #2330
Fort Myers, Florida 33919

Phone: 239-415-7495
www.gibbslawfl.com