Protecting Public Benefits

Protecting Public Benefits

Special needs planning is often appropriate when a person has a disability and receives, or may qualify for, means-tested public benefits. Common means-tested benefits in this area include Medicaid, SSI, Home and Community Based Services waiver programs, and other disability-related assistance programs. Medicare is often part of the picture as well, especially when a beneficiary is dually eligible for Medicare and Medicaid.

These programs can provide essential support for health care, long-term services, and daily living needs. Because eligibility rules differ by program and state, special needs planning should be tailored to the specific benefit the person receives. This kind of planning is also useful if a disabled person is likely to receive an inheritance, settlement proceeds, or other assets that would otherwise be counted for eligibility purposes.

When Benefits Are at Risk

Benefits can be jeopardized if a disabled person has too many countable assets in their own name. For SSI, the long-standing federal resource limit for an individual is generally $2,000, though Medicaid rules can differ by state and program.

Benefits can also be disrupted when a person receives an inheritance or lawsuit settlement directly. In those cases, transferring the funds into an appropriately structured SNT may help preserve eligibility and protect access to ongoing services.