CAUTION: This list is a guide. Each state varies in what they allow to be purchased from your trust. Please call 877-695-6444 to discuss major purchases to ensure they are allowable.
WHAT CAN I PURCHASE WITH MY TRUST ACCOUNT?
Personal Services:
Cable, cell phone, internet, maid, insurance, transportation, entertainment, pet grooming, travel expenses, rehabilitation, tuition, music lesions, massage, seminars, movies, sporting events
Personal Care:
Hair care, eye and dental care, attendant care
Professional Services:
Auto repair/maintenance, attorney/accountant/financial planning fees, home modifications/home improvements related to disability
Goods:
Vehicles, clothing, furniture, television/stereo, mattress/box springs, eyeglasses/contacts, vacations, hobby supplies, toys, essential dietary needs, computers/software, pets/pet supplies, prepaid, outdoor grill, games, school tuition, gasoline, household appliances, funeral expenses (amount varies by state), washer/dryer, musical instrument, household products, tools/supplies, kitchen appliances
HOW IT WORKS
You will need the following for your attorney:
A photocopy of your driver’s license, state ID card, military photo ID, passport, or other photo ID. We need this in order to comply with the USA Patriot Act. Your attorney will receive instructions on how to fund your account.
Once your Individual Benefit Account is established, you will be able to begin making disbursement requests almost immediately. Requests are faxed to 1-866-576-0460 with attached receipts. This is required so that if your case is ever reviewed by the state agency we can provide complete records of all funds that have been disbursed from your account. It may endanger your benefits if you work with a program that does not keep good records. Most requests are processed within two days.
Your trust is treated as a Grantor Trust which means the earning from the trust must be reported on the beneficiaries tax return. You will receive an IRS Form 1099 or K1 grantor tax letter every year for you to report any income earned by your trust on your IRS Form 1040.
Golden Rule for All SNTs:
ALL REQUESTS MADE FROM THE TRUST ARE FOR THE SOLE BENEFIT OF THE TRUST BENEFICIARY SSI AND THIRD PARTY PAYMENT OF SHELTER EXPENSES
A person receives In-Kind Support and Maintenance (ISM) whenever someone else (including a trust) pays for food or shelter for an SSI recipient. When a Special Needs Trust (or any other third party, for that matter), pays a shelter expense for a person who receives SSI benefits, SSI will take a dollar-for-dollar reduction from the following month’s SSI check. This reduction in benefits is ultimately mitigated by a regulatory reduction cap called the Presumed Maximum Value, which equals one-third of the Maximum Federal Benefit Rate, plus $20. Essentially, SSI presumes that the value of support and maintenance does not exceed a maximum amount. This maximum amount is calculated by dividing the Federal Benefit Rate by 1/3 and adding $20.
A person receives In-Kind Support and Maintenance (ISM) whenever someone else (including a trust) pays for food or shelter for an SSI recipient. When a Special Needs Trust (or any other third party, for that matter), pays a shelter expense for a person who receives SSI benefits, SSI will take a dollar-for-dollar reduction from the following month’s SSI check. This reduction in benefits is ultimately mitigated by a regulatory reduction cap called the Presumed Maximum Value, which equals one-third of the Maximum Federal Benefit Rate, plus $20. Essentially, SSI presumes that the value of support and maintenance does not exceed a maximum amount. This maximum amount is calculated by dividing the Federal Benefit Rate by 1/3 and adding $20.
SSI defines Shelter as follows:
Mortgage Payments, Rent Payments,Homeowner’s insurance, Gas Bills, Electric Bills, Heating Fuel,Water Bills,Sewer Bills,Garbage Collection,Property Taxes
This list is found at P.O.M.S. SI 00835.320. The P.O.M.S. can be found online on the Social Security Administration’s website at:
www.ssa.gov
