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DISABILITIES
How to Provide for a Disabled Child Receiving SSI
Consider a Special Needs Trust and an ABLE account.
In my line of work, parents have the most questions about futures planning for their children with disabilities. I am interested in finance, and I read a lot about it. I would like to pass along some of what I have learned to parents who are US citizens whose disabled children receive Supplemental Security Income (SSI).
Normally, SSI means a subsistence income. As my mother-in-law would say, “It’s barely enough to keep a bird alive.” In 2022, SSI maximum payments are typically $841 a month for one person or $1261 a month for a married couple if both spouses are eligible for SSI. Where I live, $800 doesn’t even cover rent in many places. That translates to SSI recipients living in subsidized housing or group homes if SSI is their sole source of income. A Special Needs Trust or an ABLE account, however, can make it possible for a disabled SSI recipient to enjoy more than just the barest minimum of existence.
What is a Special Needs Trust (SNT)?
A Special Needs Trust or supplemental needs trust is an irrevocable trust fund created to allow a child with a disability (or a disabled person below age 65) to receive and/or to inherit cash or other assets without reducing…