Pathfinder Conference - Links on Special Needs Trusts

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Special Needs Planners

Any questions may be directed to: rsi5@srt.com

Bill Proposed to Raise SSI Asset Limit

On March 24th, Congresswoman Tsongas (D-MA), along with Congressman Petri (R-WI), introduced the SSI Savers Act of 2010 (H.R. 4937) proposing to reform the asset test in the Supplemental Security Income (SSI) program, the primary provider of subsistence cash to extremely low-income individuals, seniors, and people with disabilities.

In general, eligibility for SSI is limited to those who have assets of $2,000 or less for an individual and $3,000 or less for a couple. The SSI test generally counts all resources deemed accessible to an individual, including defined-contribution retirement accounts, such as 401(k)s and IRAs, under the asset limit.

H.R. 4937 proposes to remove savings disincentives in SSI by:

• Raising the asset limit to $5,000 for single and $7,500 for joint tax filers and indexing these limits for inflation;
• Excluding retirement savings from inclusion in the asset test for noninstitutionalized individuals under the age of 65;
• Excluding savings in qualified retirement accounts below a specified ceiling of (indexed for inflation) $10,000 for an individual and $15,000 for a couple or household for noninstitutionalized individuals age 65 or older;
• Disregarding one third of the funds drawn down from retirement accounts when calculating household income for noninstitutionalized individuals age 65 or older;
• Removing the requirement that SSI recipients, if eligible, must apply for periodic payments from their retirement savings, and;
• Excluding Education Savings Accounts and Individual Development Accounts funded all or in part with federal dollars or defined in federal programs for those under age 65.

For more information go to http://www.washingtonwatch.com/bills/show/111_HR_4937.html

Source: Justice for All http://jfactivist.typepad.com/jfactivist/current_affairs/

Any questions may be directed to: rsi5@srt.com

Rule Changes for SSI

The Social Security Administration is amending their Supplemental Security Income (SSI) regulations by making technical revisions to their rules on income and resources.

These final rules are effective on February 10, 2010. You can find the full Federal Register notice and full details HERE.

Below you will find a brief summary:

Statutory Employees:

- Previously, SSA treated statutory employees the same as employees for SSI eligibility and payment-amount purposes and considered their wages as earned income. After this change to the Act, SSA now treats statutory employees as self-employed individuals and counts only their net earnings, deducting business expenses before calculating their income.

Exclusion of Child Tax Credit (CTC) From Income and Resources


- SSA excludes from income the payment of a refundable CTC.
- SSA excludes the payment of a refundable CTC from resources for the 9 months following the month of receipt.

Exclusion of Flood Mitigation Payments from Income and Resources

- Payments made for flood mitigation activities are not counted as income or resources when determining SSI eligibility and payment amounts.

Exclusion of Energy Employee, Occupational Illness Medical Benefits, and Compensation Payment from Income and Resources

- Medical benefits and compensation payments made to energy employees because of occupational illnesses are not counted as income or resources for purposes of determining eligibility to receive, or for determining the amount of, certain Federal benefits, including SSI.

Home Exclusion to Victims of Domestic Abuse

- Currently, a victim fleeing from domestic abuse may return to a potentially dangerous home environment simply to avoid losing SSI because of an ownership interest in the home. SSA is extending the home exclusion to victims of domestic abuse who flee an abusive situation, but maintain an ownership interest in an otherwise excluded home. This exclusion continues until the SSI applicant or beneficiary establishes a new principal place of residence or takes other action rendering the home no longer excludable.

Conditional Payments

- Currently, SSA can make ‘conditional payments’’ to give an SSI applicant or beneficiary some time in which to sell excess non-liquid resources and convert them to cash. SSA conditions these payments on the SSI applicant’s or beneficiary’s written agreement to sell these non-liquid resources within 9 months for real property and within 3 months for all other non-liquid resources and repay the conditional payments with the proceeds. Under current rules, SSA will not make conditional payments if the SSI applicant or beneficiary has countable liquid resources in excess of 3 times the monthly Federal Benefit Rate (FBR).


- SSA is deleting the limitation on liquid resources that was a prerequisite to receiving conditional benefit payments to simplify their conditional payments rule.


Any questions may be directed to: rsi5@srt.com

Disability Savings Accounts

The bipartisan Achieving a Better Life Experience Act of 2009 (ABLE Act), H.R.1205/S. 493, was introduced in both the House and Senate on February 26. The bills would allow individuals and families to establish special accounts for meeting the future needs of children and adults with disabilities. Funds in the accounts and expenditures which meet the requirements of the bills would not affect the individuals' eligibility for federal benefits. Using these accounts, parents would be able to save funds for a child's future in a manner similar to the special "529 accounts" currently used to save for a child's future educational expenses. The House bill was introduced by Rep. Ander Crenshaw (R-FL) along with Representatives Patrick Kennedy (D-RI), Cathy McMorris Rodgers (R-WA), and Kendrick Meek (D-FL). The Senate bill was introduced by Senator Robert Casey, Jr. (D-PA) along with Senators Sam Brownback (R-KS), Richard Burr (R-NC), Christopher Dodd (D-CT), Orrin Hatch (R-UT), and Edward Kennedy (D-MA). The bills were referred to the House Ways and Means and the Energy and Commerce Committees and to the Senate Finance Committee. The Arc and UCP worked with the sponsors and with other supporting organizations on development of the bills.

Any questions may be directed to: rsi5@srt.com

What to do with those assets???

HUD's FSS Program


"Why work when my asset limit is only $2000?"

SSA does have certain "asset exclusions". One of the most powerful ones I've seen is HUD's FSS program.

I fully intend to do a more in-depth write-up in a future post - but for now I wanted to throw up the link for your reference.

Check out the link above.

Any questions may be directed to: rsi5@srt.com