Individuals living with a disability who receive
funds through an inheritance, social security back
payment or personal injury settlement should consider
the following:
- • Does the Beneficiary depend on SSI and
Medicaid now or will there be a need in
the future? - • Due to the nature of the disability, will the
Beneficiary need a Trust Administrator?
The receipt of funds will disqualify the recipient from receiving entitlement benefits (because of a $2,000 limit as of 2010) such as SSI and Medicaid. Once benefits are lost, the funds will be used to pay expenses paid for by SSI and Medicaid. Having a Pooled Disability Trust will not jeopardize these benefits.
The Pooled Disability Trust is authorized by the Omnibus Budget Reconciliation Act and is self-funded by the person living with a disability. For Beneficiaries who receive Medicaid this is a Medicaid payback trust. (See What happens to the remainder when the Beneficiary passes away for Medicaid recipients?)
