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SSI resources spend down

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Hau'oli

Junior Member
What is the name of your state?My state is Hawaii.
My son (age 20, with Down Syndrome) received SSI benefits for one year. He was then declared ineligible because the funds in his special needs trust (which we thought to be legally non-countable as a resource) exceeded the $2,000. limit.
After 20 months of going through the reconsideration and appeals processes, the original ruling stands. He must repay all the benefits he received ($4,600.) and also show that he has spent down the remainder of his trust funds to re-qualify.
His SSI allotment was used to pay his living expenses. He is not employed and has no income. When his benefits stopped, we began using our own funds, which were earmarked for needed repairs on our home, to pay his expenses (food, clothing, rent of a room in our home, entertainment, transportation and personal items). This, in essence, was a loan to him which would be repaid pending the outcome of the judge's decision on his resources.
My questions are:
1. Will repayment of this loan constitute a valid spend down in the eyes of the SSA?
2. What proofs will be required to show how the money was used? We have the ledger we used to keep track and itemize his expenses. We have bank statements which show the occasional deposits we made to his checking account so that he could make purchases on his own. We have a few receipts (not all) for some larger purchases.
3. It has been 20 months since he received SSI benefits. Will he need to go through the entire application process again, or can he be reinstated? There is no question about his disabling condition or his income. His resources were the only issue.
4. If and when he is re-approved for benefits, can he be considered a household of one, renting from us, or will he be considered part of our household (3 people) and required to pay a third of all household expenses?

Thank you VERY much for any help!
 


rmet4nzkx

Senior Member
There is some confusion between SSI income which is needs based and SSDI which is entitlement and not affected by outside income although rules for special needs trusts changed in 1999. Is the SSI in addition to SSDI? When was the special needs trust set up? Was it approved by SSA? You should be able to show all the money you actualy put into his account if that was your money and not SSDI money acting as his Rep Payee. If it really was loans it should count towards lowering the amount in the trust, but these have to be litigitmate items. Does your child still have medical coverage? How old are you? Disability, age 62+, or retired? Have you looked into placement in enrichment programs and group homes?
Does he have a case manager and are you working with:
Developmental Disabilities/ Mental Retardation Program

This program provides individuals with developmental disabilities/mental retardation support and services that will enable them to live as independently as possible in the least restrictive environment. Some services available include:

· Adult day health
· Personal assistance
· Respite
· Habilitation
· Habilitation-supported employment
· Skilled nursing
· Specialized services
· Personal emergency response system (PERS)
· Transportation
· Specialized medical equipment and supplies.

Admission requires referral from a Department of Health, Developmental Disabilities Division (DOH-DDD) Case Manager. All individuals not known to DOH-DDD should contact the DOH-DDD Intake Office on their island.

CONTACT NUMBERS

DOH-DDD Intake Offices

Island
Phone
Fax

Oahu
(808) 733-9303

(808) 733-9182

Maui
(808) 984-8252
(808) 984-8253

Kauai
(808) 241-3406
(808) 241-3480

East Hawaii
(808) 974-4280
(808) 974-4285

West Hawaii
(808) 322-4880
(808) 322-4886

North Hawaii
(808) 885-7357


(808) 885-5316
 

Hau'oli

Junior Member
Thank you for your reply.
To answer your questions:
Our son has never received SSDI
His trust was set up in 2001, he was approved for SSI and began receiving it in 2002. During the determination of eligibility phase, SSA did not ask us about the existance of a trust (Later, they told us this was an oversight on their part.) and we were unaware that it would even be taken into consideration. The attorney who drafted it was confident that the language in the trust would ensure protection of government benefits.
The funds in the trust were in the form of a money market account which was set up as a UGMA gift by our son's great grandfather 20 years ago and which became property of the trust the year before our son turned 18. Our contention was that these funds were not his own money and therefore not countable. However, the judge ruled that these funds became his when they were originally gifted to him - whether or not he ever had control over them.
My husband and I are both under age 62. Neither of us is disabled.
Our son has medical coverage through my husband's employer.
Our son is in the DD system. He has a caseworker and an ISP.
There is one small group home in our area (full with a waiting list).
There are no other housing options available to him.
He has just been accepted into DVR's supported employment program, with hopes of finding a part time job with supports to help him be successful.
We have been told that he needs to also get involved with SSA's Ticket to Work program, but he will have to become eligible for benefits again in order to do that.
Thanks so much for your interest and your help.
Aloha, Hau'oli
 

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