SSI Rules
The purpose of a Special Needs Trust or Pooled Trust is to supplement public benefits and therefore protect Medicaid or SSI eligibility for individuals with disabilities.
For SSI purposes, disbursements from the trust will be counted as income unless they are "in-kind" payments by the Trustee to a third-party that result in the Beneficiary receiving items which are not food or shelter. If the in-kind payments are for food or shelter, then SSI has presumed maximum value (PMV) rules, to calculate how much will be deemed as income and thus reduce the individual's SSI benefits somewhat. Income paid directly to the beneficiary will reduce benefits dollar for dollar.
This means that if a Beneficiary is on SSI, disbursements cannot be used for food and shelter without affecting their SSI benefits.
Examples of Food and Shelter Expenses:
1. Mortgage (Including property insurance required by the mortgage holder)
2. Food
3. Real property taxes (Less any tax rebate/credit)
4. Rent
5. Heating fuel
6. Gas
7. Electricity
8. Water
9. Sewer
10. Garbage removal