The Social Security Administration (SSA) oversees several assistance programs that are designed to support workers, people with disabilities, older individuals, and other vulnerable people. According to recent data, “73.9 million people—more than a fifth of the entire U.S. population—got benefits from at least one of Social Security’s programs.” Programs like Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) provide financial assistance to qualifying individuals, and applicants must be able to meet certain eligibility requirements in order to receive these benefits. After your loved one’s application is accepted and he or she starts to receive benefits, it’s common for questions to arise, such as how other factors may affect their eligibility or what happens to disability benefits after death, among many others. Seeking the guidance of an experienced and caring Michigan SSDI and estate planning lawyer is highly recommended to ensure that you receive clear answers to any questions you may have.
While a qualified disability benefits attorney can assist you with any number of questions related to SSDI or SSI eligibility, seeking out the counsel of a lawyer who also practices estate planning law can be particularly helpful. The interactions between SSI and estate planning can be complicated to understand, and having an experienced attorney by your side who understands the nuances of these matters can help protect benefits while managing your estate or a loved one’s inheritance. Let’s take a closer look at the the steps you can take to help ensure that any beneficiaries who rely on these benefits will continue to receive them in the future.
Can You Inherit While on SSI or SSDI in Michigan?
One of the most common questions that Michigan beneficiaries have is whether they can receive an inheritance and still receive SSDI or SSI benefits. It’s worth noting that SSDI is not a needs-based program, which means that any inheritance the recipient receives will not disqualify them from continuing to receive SSDI benefits. In contrast, SSI eligibility is needs-based, and the program has strict income and asset limits. This means that any inheritance an SSI recipient receives will likely exceed the asset limit, which can lead to the suspension or termination of SSI benefits. For those who have loved ones that rely on SSI assistance, it’s important to approach the estate planning process with these considerations in mind so that you and your Michigan estate planning lawyer can put the necessary protections in place to safeguard their SSI or Medicaid eligibility.
Estate Planning for Beneficiaries on SSI or Medicaid
If you have a loved one who relies on needs-based government benefits like SSI and Medicaid, it’s essential that you work with an experienced estate planning attorney to understand your options for protecting these assets without jeopardizing their eligibility. For instance, establishing a special needs trust in Michigan can be a useful tool that allows you to financially support them without risking their eligibility for public assistance programs. When you set up a third party special needs trust, the assets you place within the trust are not counted toward the beneficiary’s resources when it comes to determining their eligibility for SSI, Medicaid, or other needs-based programs. Another estate planning strategy is to avoid direct lump sum gifts or inheritances that are allocated all at once. If you are interested in learning more about the benefits of setting up a special needs trust, get in touch with a highly qualified and compassionate Michigan estate planning attorney today.
What Happens to SSDI Benefits When a Recipient Passes Away?
Another common question that SSI and SSDI recipients have is what happens to their benefits upon their death. Generally speaking, SSI and SSDI benefits stop when the recipient passes away. Because SSI benefits are paid a month behind, if you die during a certain month, you will not receive any further benefits. Similarly, while SSDI benefits are paid in advance, according to the SSA, SSDI “benefits aren’t payable for the month of death. That means, for example, if the person died any time in July, the check received in August (which is payment for July) must be returned.”
Family members of SSDI recipients may be eligible for Survivor benefits, as long as they meet the eligibility criteria. Family members of the deceased SSDI recipient who may qualify for Survivor benefits include spouses, ex-spouses, children, adult children with a disability, or dependent parents. If you qualify for Survivor benefits, the amount you are entitled to receive varies depending on your relationship to the deceased and your age.
Legal Tools That Help Coordinate SSDI and SSI With Estate Planning
As you approach the estate planning process in Michigan, don’t worry if you feel somewhat overwhelmed and intimidated by the number of options available to you. Working with an experienced estate planning attorney is the best way for you to articulate your needs and goals so that you can identify the best estate planning tools to support your vision. If your estate planning concerns involve a loved one who relies on government assistance, you and your attorney can implement tools like durable power of attorney, medical power of attorney, and special needs trusts to ensure that they will continue to receive the support they need, no matter what the future may hold
Get Started With a Caring Michigan Estate Planning Attorney Today
Navigating the world of SSI and SSDI benefits can be confusing, and it’s natural for questions to arise along the way. That’s why the dedicated and highly qualified legal professionals at Warren & Schairbaum, PLLC, are ready to listen closely to your concerns and provide you with the customized and effective guidance you need to make informed decisions with greater confidence. We encourage you to contact our Ann Arbor, Michigan office today at (734) 769-9300 to get started with a caring and trusted SSDI and estate planning attorney.
