SSI and SSDI in California Similar Names but Very Different – The McNamara Law Firm

I often discuss the benefits of Special Needs Trusts with clients who have a disabled child. The disabled child usually receives “needs based” government benefits based on their disability and lack of income/resources, and those benefits should be protected in the event of a future inheritance. When planning, it is essential to know which benefit or benefits the disabled child receives. The two main programs are Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Although both offer support to people with disabilities, they are very different programs, and are often confused.
SSI: For those with disabilities and limited income/resources
Monthly benefit is based on need. The recipient must have limited resources and income.
There are lots of rules, and mistakes can be very costly to the beneficiary.
If receiving SSI, then the beneficiary is also eligible for Medi-Cal (Medicaid in other states).
If a disabled person is receiving SSI, a Special Needs Trust should be considered to protect potential inheritances and properly manage money.
SSDI: Based on disability and work history (social security taxes paid and work credits earned)
The monthly benefit is NOT based on need, so a Special Needs Trust is often NOT needed to protect an inheritance.
Eligible for Medicare after a two-year waiting period.
A disabled beneficiary may also receive BOTH benefits, as well as Medicare AND Medi-Cal. In such a case, a Special Needs Trust should be considered.
If you or someone you know has a disabled adult child, it is important to consider the planning options available to protect inherited assets, ensure continued future benefits, and help manage those assets for the beneficiary to provide the best quality of life possible. For more information, please visit www.theMcNamaraLawFirm.com; or call (661) 287-3260.