Document Type

Presentation

Publication Date

1-1-2012

Disciplines

Disability Law | Estates and Trusts | Law

Abstract

The basic federal safety net program for elderly, blind and disabled persons is Supplemental Security Income (SSI). The Social Security Administration (SSA) administers the program and eligibility is based upon financial need. The basic eligible criteria are that an individual have less than two thousand dollars ($2,000) in assets, or three thousand dollars ($3,000) for a couple, although certain limited resources are excluded. There are also income limitations that individuals must satisfy to qualify for SSI. SSI’s sister in welfare benefits is the Medicaid (Title 19) program. While SSI is entirely a federal program, Medicaid, which shares the same basic eligibility requirements, is a program governed by both federal and state statutes and regulations. Medicaid provides for payment of medical expenses including long term care costs which are not covered by Medicare (with certain limited exceptions) or most private health insurance. Eligibility for Medicaid, being a needs-based benefit, depends on at least three primary facts: (1) the individual applicant’s resources; (2) the individual’s income; and (3) whether the individual has made any gifts or transfers within certain time periods which result in a period of ineligibility for benefits. The resources, income and gifts attributable to the applicant’s spouse are also considered. Individual eligibility determinations for Medicaid include an analysis of any trusts to which the individual is a beneficiary. There are two basic kinds of trusts which fall under two different analytical rubrics for eligibility purposes, self-settled trusts (trusts which the individual or the individual’s spouse has funded) and third party trusts (trusts funded by a third party).

Publication Title

Trusts 101, National Business Institute

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