15 Apr Government Benefit Eligibility for Disabled Individuals and Inheritances

Many disabled individuals rely on government benefit programs to make ends meet. Certain programs, such as SSDI and Medicaid, are subject to asset thresholds. This means that if a person receiving government benefits puts enough money in the bank, they will lose their benefits. As of 2022, the asset threshold for SSDI and Medicaid in Florida is $2,000.00 for a single person and $3,000 for a married couple. Therefore, program recipients depositing more than this amount into their bank accounts are subject to a loss of benefits.

Asset thresholds are problematic for government benefit recipients who are receiving inheritances. SSI and Medicaid often provide thousands of dollars per month in medical care and financial assistance. Losing these benefits will result in the quick depletion of their inheritance. Fortunately, federal law (42 U.S.C. § 1396p(d)(4)(A)) allows for the creation of a “special needs trust” also known as a “supplemental needs trust” so that a disabled person can enjoy their inheritance without losing benefit eligibility.

By placing their inheritance in a special needs trust, a disabled person can access those funds for purposes like travel, dining out, vehicles, and purchasing consumer goods. Special needs trust funds are meant to supplement government benefits, and are therefore not supposed to be spent on medication, rent, or groceries. Special needs trusts provide flexibility for inheritance funds while allowing disabled individuals to remain eligible for government benefits, even when receiving large inheritances.

CLICK HERE to schedule a consultation with a Florida Estate Planning Attorney to discuss creating a special needs trust for your loved one.

If you have lost a loved one who either was a resident of, or owned property in the the State of Florida, and need assistance with Florida Probate, CLICK HERE, to schedule a consultation with a Florida Probate Attorney.

We serve clients throughout Florida, including, but not limited to, those in the following localities: Alachua County including Alachua, Archer, Gainesville, Hawthorne, High Springs, and Newberry; Bay County including Panama City and Panama City Beach; Broward County including Deerfield Beach, Fort Lauderdale, Hollywood and Pompano Beach, Clay County including Lakeside; Columbia County including Lake City; Duval County including Jacksonville; Leon County including Tallahassee; Marion County including Ocala; Miami-Dade County, including Aventura, Coral Gables, Hialeah, Miami, Miami Beach, Miami Gardens, North Miami, North Miami Beach and Sunny Isles; Palm Beach County including Boca Raton, Delray Beach and Palm Beach, Putnam County including Palatka; Sarasota County including Sarasota; and Taylor County including Perry.