If you are the caregiver, family member or friend of a loved one with special needs, chances are you will, or have considered, giving them a gift. Whether the gift is for a special occasion or “just because,” there are important guidelines that should be followed.
An individual with special needs may be eligible to receive of government benefits – either now or in the future. These benefits are a critical component to their care, providing supports such as food, housing and medical/dental care. Sadly, a well-meant gift to a person with special needs can have disastrous consequences on the eligibility requirements for these crucial government benefits.
Government benefits such as Medicaid, Supplemental Security Income (SSI), Supplemental Security Disability Income (SSDI) and Section 8 housing are all directly affected by additional monies that may be received by the individual with special needs. An individual receiving SSI should not receive money or the equivalent of money (i.e., personal or traveler’s checks, money orders or money via wire transfer) for items such as food, rent and utility bills.
Under current law, individuals receiving SSI should not be given more than $20 per month in cash gifts from any source, as this may reduce the beneficiary’s SSI benefit for that particular month. Individuals wishing to make cash gifts to beneficiaries should consult with a qualified professional knowledgeable in the area of special needs trusts if they are unsure as to how it will affect the beneficiary’s SSI benefit.
Despite the existence of limitations to cash gifts, there are many other creative ways for individuals to provide monetary gifts to a beneficiary without adversely affecting their governmental benefits.
For purposes of this article, we will refer to the individual with special needs as the “beneficiary.”
GIFT OPTIONS
THINGS NOT TO DO
THINGS TO REMEMBER
By utilizing a creative approach to giving gifts to individuals with special needs, it is possible to provide these individuals with an enriched quality of life that does not interfere with the important government benefits they receive on a monthly basis. Those who wish to make monetary gifts need to be mindful of the limitations that exist and should always seek professional advice when in doubt. As always, the professional and knowledgeable staff at Protected Tomorrows is available to assist in navigating this complex issue.