Disability payments and trust fund income

[Rose Pink]

We will be finding ourselves in the position of allocating trust fund monies to a relative who receives disability payments. Not wanting to jeopardize his disability income, how much can he receive from the trust each month? I doubt there will be enough in the trust to carry him through the rest of his life--it isn't alot but I want to be careful not to jeopardize his disability payments and then leave him with nothing when the trust fund runs out. I don't think he is quite capable of managing to reapply for disability if he loses it--and I don't want to have to deal with him and his issues personally. (Long story but the more we can do this at a distance, the better.)

The trust is in the family name, not in his name.

 

[Jestjoan]

RP

I LOVE your tag line. CDO........

 

[Rose Pink]

I LOVE your tag line. CDO........

Thanks, Joan. Some people don't get it, but those who do laugh their socks off.

 

[Conan]

There's no general answer to your question.
Is the disability income Medicaid? Social Security? Insurance contract?
Whose money established the trust?
Is he the only beneficiary of the trust?
Does the trustee have absolute discretion over both income and principal?

...And that's just a start

 

[Rose Pink]

There's no general answer to your question.
Is the disability income Medicaid? Social Security? Insurance contract?
Whose money established the trust?
Is he the only beneficiary of the trust?
Does the trustee have absolute discretion over both income and principal?

...And that's just a start

I know I need to talk to our CPA or attorney but wanted to try to educate myself first. (At $200 an hour, I don't want to be wasting time. )

I think the income is from Social Security disability but I am not sure. Daddy's money established the trust. He is not the sole beneficiary and the trustees are only directed to pay out his share in monthly installments--no specific time frame or amount is specified. I had hoped to find a branch of the credit union close to where he lives so he can collect his monthly allowance from them.

 

[suesam]

You truly need an attorney to protect that money. In certain cases you can set up a "special needs trust" to protect the money from medicaid, etc. I am a little vague on all of technicalities I just know a family set it up for a young person I know who suffered a stroke at a young age and is recieving government funding as well as the trust funds.

Good Luck!
Sue

 

[Conan]

The government website seems to say that non-employment income doesn't interfere with SSA disability benefits.
http://www.ssa.gov/dibplan/dwork.htm

 

[Rose Pink]

Thank you.