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FAQs

Trusts Established by the Individual Seeking SSI Eligibility

In general, if a person sets up a trust for his or her own benefit, and uses his or her own funds to create the trust, it is a resource if it was established on or after January 1, 2000.

If the trust was established before January 1, 2000, it may or may not be a resource, depending on the terms of the trust. Trusts established before January 1, 2000 are resources to individuals if the individuals have the legal authority to revoke the trust and then use the funds to meet food, clothing and shelter needs. A revocable trust is one that the person can choose to end at any time. An irrevocable trust is one that is established, and can’t be changed. A trust also counts as resources if the person can direct the use of the trust principal for their support and maintenance. In the case of a “revocable” trust, the entire principal of the trust is a resource to the individual. Also, disbursements from a revocable trust that are not made to, or for the benefit of, the SSI recipient may be considered a transfer of resources. (See discussion of Transfer of Resources on the following page.)

Some other types of trusts may not be counted as resources. While these trusts are not counted under SSI rules, the SSA refers to them as Medicaid trust exceptions.

Special Needs Trusts

Trusts established under Section 1917(d)(4)(A) of the Social Security Act are not counted if:
  • the trust was established with the assets of a disabled individual under age 65;
  • the trust was established for the benefit of the individual by a parent, grandparent, legal guardian or a court; and
  • the trust arrangement provides that upon the death of the individual, the State will receive all amounts remaining in the trust up to an amount equal to the total amount of medical assistance paid on behalf of the individual under the State Medicaid plan. If there is money in the trust after the state has been reimbursed, then that could go to the survivors.

Not all special needs trusts meet this exception. Again, asking the SSA is the best way to ensure all information is accurate.

FAQ Disclaimer: The VCU-BARC FAQ Pages are general information provided as a public service. The contents do not necessarily represent the policy, interpretations or opinion of the Social Security Administration (SSA). The information contained here is intended to inform readers of issues that may affect Social Security and/or other public assistance benefits. Because individual circumstances differ, the reader should not rely on any information here as being specifically applicable to an individual's situation.