Many Americans have a family member who receives Social Security Disability Insurance which may create some uncertainty about leaving them an inheritance. The standard assumption is that SSDI is means tested and that a beneficiary of SSDI must have any inheritance they are due to receive protected to avoid increasing their net worth. However, SSDI is not a means tested program so there should be no issues there absent other factors such a fraud. However, Medicaid and other programs such as SSI are means tested so if the beneficiary is receiving those extras, or intends to seek them, then a trust would be appropriate to avoid increasing there net worth or income to a level that will deny them additional benefits.
See, Do I Need a Special Needs Trust To Protect My SSDI Benefit?, Special Needs Answers, October 12, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
