Q: How to address SSI issues with UTMA for a disabled 21-year-old in TN?

A: When the Social Security Administration counts a UTMA account as a resource for your disabled child who receives SSI, you face a significant challenge since SSI eligibility requires resources below $2,000. The transition at age 21 makes this particularly complex in Tennessee, as your child legally controls these assets despite continuing high school education.

Your most effective options include establishing a Special Needs Trust to hold the UTMA funds, which requires court approval but protects SSI eligibility while preserving assets. Alternatively, you might consider transferring funds to an ABLE account, which offers tax-advantaged savings for disability-related expenses without counting against the SSI resource limit (though annual contribution limits apply). You could also strategically spend down UTMA funds on exempt resources such as a primary residence, necessary medical equipment, or educational expenses that benefit your child.

When approaching the SSA, document everything thoroughly and consider requesting a "conditional benefits" arrangement while you restructure these assets. The formal appeal process includes reconsideration, administrative hearing, Appeals Council review, and federal court options if needed - with each step having strict deadlines. Given your child's status as both disabled and a student, you might qualify for specific exemptions under SSI regulations that could protect benefits during this transition period.