Q: Can I deposit my Daughters $19K Jackpot winnings into her Special Needs Trust so that SSI doesn’t stop her monthly pmnt

She is on SSI and is Bi Polar. There is a Special Needs Trust set up for her. She won this playing Bingo and the Casino took all the taxes out and gave her $5,000 cash and the rest in a check because that is what she asked them to do. I found out about it and have all of it now and wondering what I can do. She has 2 rental houses in the trust that need a lot of work and she has other expenses that SSI just can’t pay for. This was a great moment for her and I’m happy for her but I’m afraid she might have jeopardized her SSI income and healthcare at least for the foreseeable future. If there is a way to put the winnings in her trust and keep her SSI intact that would obviously be wonderful. I’m sure we are the same as multiple families who have a SNT for their Child. The answer to this question doesn’t truly impact her so much as it does my Wife and I. Thanks for your help.

2 Lawyer Answers
Nina Whitehurst
Nina Whitehurst
PREMIUM
Answered
  • Estate Planning Lawyer
  • Crossville, TN
  • Licensed in California

A: Yes if her special needs trust is a first party SNT; otherwise no. If it is not a first party SNT the best choice is probably an ABLE account if she is eligible.

James Edward Berge
James Edward Berge
Answered
  • Estate Planning Lawyer
  • San Jose, CA
  • Licensed in California

A: I agree with Nina. If the first party trust, also known as a self-settled trust, has a Medi-Cal payback provision in it, you can deposit the receipt into it and it’s no longer considered an available resource under SSI and Medi-Cal rules and regulations. However the income must be reported to SSA by the 10th of the month following the receipt and any SSI monies received during that month of receipt will have to be paid back along with your notice.

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