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What Taxes Are Due When the Beneficiary of a Special Needs Trust Dies?
Trusts are important vehicles in special needs planning. What happens, though, when the primary beneficiary of a special n...
Read moreSNT Beneficiary: Will a One-time Disbursement Hurt Benefits?
- January 9th, 2024
Q
I am currently a beneficiary of a special needs trust (SNT) who also receives public benefits, and I am wondering if I can legally get a one-time disbursement without affecting the benefits on which I rely.
A
Questions regarding the beneficiaries of special needs trusts (SNTs) and disbursements can't be easily answered without knowing more about the type of benefits being received. Some government programs have income limits, some asset limits, and some both, such as Supplemental Security Income (SSI) and Medicaid.
Disbursements When You Receive SSI and Medicaid Benefits
It may be possible to receive a one-time disbursement and only lose a month of SSI benefits as long as the money received is spent down by the end of the calendar month.
Disbursements and SSDI Benefits
On the other hand, if you’re receiving Social Security Disability Insurance (SSDI), there are no income or asset limits, and the disbursement would be fine.
Resources
This article titled What Can an SNT Pay for Without Affecting SSI or Medicaid? may be helpful.
If you have questions after reading the article, find a special needs planning attorney in your area to discuss your particular situation and the laws in your state.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.
Last Modified: 01/09/2024