How SSI and SSDI can impact estate planning
It is essential for you to understand the advantages and programs that you may be eligible for if you or your relative have a disability.
Finity Law firm helps individuals in estate planning who have concerns about SSI and SSDI requirements. These are typically factors that must be taken into consideration when someone wishes to provide for the special needs of a loved one.
For more information on how Supplemental Needs Trust a/k/a Special Needs Trust can be utilized to protect your or a loved one’s SSI and SSDI, click here.
SSI and SSDI give disabled people, who otherwise cannot be working gainfully, cash via monthly checks. Much uncertainty remains over the difference between the two programs which this article with highlight below:
What is SSI?
SSI is a direct payment program for people with disabilities who have been unable to work or can no longer work and contribute to the SSDI scheme. SSI is a benefit intended to fulfill the basic needs of people who do not have any other means of financial support.
You may be liable for SSI benefits if you: Meet the strict financial requirements; are under the retirement age of Social Security; and have not paid into the SSDI scheme by payroll deduction in the previous ten years.
SSI extends monthly coverage to those aged 65 or above, or to those with disabilities including blindness.
In many cases, there is an overlap between the SSI payments and the regular Social Security retirement or disability benefits that many people receive from the Social Security Administration. Still, those applicants who meet the eligibility requirements will theoretically get money from both schemes.
For exceptional cases, children under the age of 18 may be considered disabled and seek SSI coverage.
The condition may result in severe physical disabilities for a child to qualify and can be expected to cause death or have lasted or are expected to last longer than 12 months.
What is SSDI?
SSDI is a compensation program offered by the federal government to United States citizens who have already worked and paid taxes on social security. SSDI is granted to people who can not work because of a mental or physical disability.
In order to qualify for SSDI, there must also be a showing of an inability to work for at least one year beyond the previous work period.
SSDI can not be used to close an income gap due to temporary injuries as a short term benefit.