There are a number of different government programs that are used by people who have disabilities. Some people qualify for SSI, which is an acronym that stands for Supplemental Security Income. Others qualify for Social Security Disability Insurance (SSDI) payments. In this blog post, we will look at the distinctions between these two government programs.
Supplemental Security Income (SSI)
Supplemental Security Income is a source of ongoing income for people with disabilities. This coverage is available to people who can prove that they have financial need. There is no requirement with regard to work credits. If you are disabled, and you can prove that you have very limited financial resources, you may be able to qualify for SSI.
Because Supplemental Security Income is a need-based program, a person who is enrolled could eventually lose his or her eligibility if this individual was to come into some money. This is something to take into consideration if you want to give a gift to someone with a disability, or if you are going to be leaving someone with a disability an inheritance.
You could potentially address this type of situation through the creation of a supplemental needs trust. Supplemental Security Income does not pay for everything that a benefit recipient may want or need. Assets that have been conveyed into a supplemental needs trust could be used to improve the beneficiary’s quality of life without jeopardizing government benefit eligibility.
We should emphasize the fact that the trustee must handle the assets in the trust; the beneficiary cannot directly utilize the resources.
Social Security Disability Insurance
When you work and pay taxes, you see this pesky FICA deduction. It can seem like a pure nuisance, but in fact, you are earning retirement credits when you pay this tax. Ultimately, you will qualify for Social Security when you reach the age of eligibility, and you will qualify for Medicare coverage if you accumulate enough credits.
When it comes disability, you could potentially qualify for Social Security Disability Insurance if you become disabled if you have earned sufficient credits. The number of credits that you would need to qualify for Social Security Disability Insurance would depend upon your age at the time of disability.
You earn this coverage by paying your taxes, so you would not lose eligibility for your benefit if you were to experience an improvement in financial status. Eligibility for SSDI is not dependent upon financial need.
Schedule a Free Consultation
If you would like to discuss disability insurance or any other relevant matter with a licensed professional, our firm can help. We offer free consultations, and we would be glad to answer all of your questions and help you construct a plan if you decide to go forward.
To set up an appointment, send us a message through this page: Dallas TX Estate Planning Attorneys.