Pianning For The Disabled hy David Harmon (NAPSA)}—Arecent law change closed Social Security Administration gaps in determining SSI (Supplemental Security Income) eligibility for the disahled. Prior to the newstatute there was nothing in the SSA law regarding trusts. Now the law generally provides that trusts established with the assets of an individual or his or her spouse will be considered a resource for SSI eligibility purposes. However, a basic understanding of the new regulations, SSL, and state Medicaid lawis eritical to proper planning. Here are a few commonly asked questions answered byexperts at MetLife. Q. What is SSI? A. SSH is a federal program usually administered by state agencies that provides income to the aged, the blind, and the disabled. Cash benefits are paid each month up to the “federal benefit rate.” For the disabled, eligibility for SSiis based on need as well as disability. A person is not qualified to receive SSI if he or she has “countable resources” in excess of $2,006 or “countable income” in excess of the federal benefit rate. Q. What is Medicaid? A. Medicaid is a state-administered, federally subsidized program that pays for needed medical care for eligible persons. An applicant’s medical diagnosis finances and age are used in determiningeligibility. In most states people whe qualify for SSI automatically receive Medicaid. Q. How do trusts come into all this? A. Generally a trust is a legal arrangement that involves prop- erty and ownership interests that may or may nor be considered a resource for SSI purposes. The new regulations call for close serutiny as to whether anytrust assets or income can be attributed to the disabled SST applicant, or can be indirectly tied to the applicant. Under the new law, the general rule is that selffunded or self-settled trusts using the assets of the disabled person are countable resources for SSI purposes. The good news is that SSA regulations still allow what are callec special needs or supplemental needs trusts that have been estabshed with the assets of third parthes and do not consider these trusts a resource for SSI ehgibility purposes. This means that parents, grandparents, or relatives ‘an set up funding for the lifetime care of a disabled relative without worrying about losing SST. For more information about unis and other related topics call 1-877-MetDESEor visit the MetDesk Web site at www.meitlife.com/ desk. Mr. Harmon is the MetDESK Manager, and a parent of a special needs child. MetDESK is a division of Metropolitan Life InsurGnCE Company, New York, NUY. 10010, that focuses on the finan- cial concerns of families with spe- cial needs children.
