Special needs child that is collecting SSDI
Im hoping someone may have some insight on this…I have a 70 client who has a daughter who is 33 years old and is special needs who cannot really work and is collecting SSDI of $880 a month. Her 70 year old father is thinking about doing a life policy for her on him but we are not sure which direction to go so that she would not lose her SSDI. She does not have any siblings and she has 2 little children. Special needs trust would be the last resort but looking for other suggestions.
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2021-05-28 16:48
SSDI is only lost if the beneficiary works too much or is determined to no longer be disabled. But perhaps the daughter is on SSI (different from SSDI), or on Medicaid. If on Medicaid, a SNT would preserve those benefits, not sure if life insurance proceeds would.
Permalink Submitted by Bruce Steiner on Sun, 2021-05-30 02:45
If he’s 70 does he need life insurance? How much longer does he expect to work?
Her Social Security isn’t means tested. However, if she has a disability (or even if she didn’t have a disability) he may want to consider providing for her in trust rather than outright.