SSI Benefits for Disabled Adults (18+)

SUPPLEMENTAL SECURITY INCOME (SSI)

SSI is a federally financed and administered, needs-based program, which guarantees a national minimum income level for the aged, blind, and disabled with limited income and resources.

Every disabled person should apply for SSI when they turn 18 years of age. Most 18 year old developmentally disabled persons will satisfy the tests for limited and income and resources. Because the developmentally disabled person is an adult (18 +), the income and resources of his or her parents are not considered. Eligibility for SSI will be based on the income and resources of the developmentally disabled person.

FREQUENTLY ASKED QUESTIONS:

Q. How much will the developmentally disabled adult receive in SSI benefits?

A. Effective January 2019, the maximum SSI payment for an eligible individual is $771 per month.

Q. Why do some developmentally disabled persons receive approximately 1/3rd less than the maximum SSI payment?

A. If your child lives rent free in your home, then the SSI payment will be reduced by 1/3rd. The current living arrangements of the developmentally disabled person will be a factor in determining the amount of his or her SSI monthly payment. The developmentally disabled person can get up to the maximum payment if he or she is living in someone else's household (i.e., parents) as long as he or she pays for his or her food and shelter costs. If the developmentally disabled person is living in someone else's household and does not pay his or her food and shelter costs or pay only part of their food and shelter costs, then the SSI monthly benefit may be reduced up to 1/3rd the maximum amount.

There are 2 different ways ("Fair Share" or "Rent as a Tenant") to get the full amount of SSI benefits and you need to understand both approaches. My experience is that in most situations, the amount of "fair share" exceeds the SSI payment and accordingly will not work and the "rent" approach is the preferred manner.

Fair Share: To determine whether or not you are paying your fair share of your household's expenses, SSI officials will require you to itemize your household's expenses and divide those expenses by the number of people living in the home. Household expenses include total monthly expenditures for food, rent, mortgage, property taxes, heating fuel, gas, electricity, water, sewerage and garbage collection. If the amount of expenses divided by the number of people in the home is less than an amount you are capable of paying from your own income, SSI will allow you to keep your whole SSI check. If the amount is greater than the amount you receive in earnings and SSI benefits (even if only over by a few dollars), SSI will deem this excess amount as a voluntary contribution toward your support, and will reduce the SSI check by 1/3rd.

Rent as a Tenant: You will need to charge rent to your child in an amount which you would charge anyone else for renting a room in your house. For example, if the going rate to rent a room in your neighborhood is $350 per month, then you charge your child $350 per month. Your child is a separate household living in your household. You do not provide free food to your child as he or she is responsible to pay their rent and pay for their food.

Sometimes a parent asks, "How can you charge rent if the person has no money?" One way to answer that question is that the child owes you.

If your child is currently receiving SSI with a 1/3rd reduction, you can always contact Social Security and inform them that there has been a change in circumstances and that you are now charging your child rent.

Q. What 'resources' or assets can a disabled person have and still qualify for SSI?

A. Generally, to get SSI, the countable resources or assets must not be worth more than $2,000 for an individual. Resources are cash and things the person own and can turn into cash. Examples of resources are bank accounts, property, stocks and bonds.

Q. What happens if the developmentally disabled person's resources or assets are transferred in order to get under the $2,000 limit?

A. If the resources of the developmentally disabled person are transferred or given away or sold for less than it is worth, the disabled person may be ineligible for SSI up to 36 months.

Q. Can the resources or the assets of a developmentally disabled person be placed in a "Special Needs Payback Trust" and still qualify for SSI benefits?

A. Yes. By putting the assets into a "Special Needs Payback Trust," these monies will not count towards the $2,000 limit on assets which a disabled person is permitted to have and still qualify for SSI. It is very important to have an attorney who has experience in this area to draft this type of Trust or otherwise, an improperly drafted Trust may disqualify the person for SSI benefits until that Trust is exhausted.

Q. Can the resources or the assets of a developmentally disabled person be placed in an ABLE account and still qualify for SSI benefits?

A. Yes. By putting the assets into an ABLE account these monies will not count towards the $2,000 limit on assets which a disabled person is permitted to have and still qualify for SSI. However, for 2018, a person cannot deposit more than $15,000 per year. So if a person had for example, $25,000 in their own name, then they would need to put the money into a "Special Needs Payback Trust" in order to qualify for SSI as the ABLE account can only accept $15,000 per year. A person can have up to $100,000 in their ABLE account and still qualify for SSI.

Q. Should a parent or relative contribute their own money into an ABLE account?

A. No. An ABLE account has a Payback feature which means that upon the passing of the disabled person, before any monies in the account would be paid to the designated beneficiaries on the account, Medicaid would be entitled to be reimbursed for any monies which they paid during the lifetime of the disabled person. If a parent or relative wanted to contribute their own money to benefit the disabled person, then a Special Needs Trust should be set up and there would be no Payback requirement.