Can a Special Needs Trust Pay for Housing Without Reducing SSI Benefits?
Trustees of special needs trusts generally have wide discretion in determining whether to distribute funds to trust benefi...Read more
The answer depends on whether the trust allows disbursements for utilities. If it does, you need to assess the disbursement's impact on the beneficiary's government benefits. If the beneficiary receives SSI , the payment of utilities can reduce his SSI benefit by up to $264.33 in 2015. If the beneficiary also receives Medicaid, you will need to consult a local special needs planner to determine the effect of the distribution. Payments of utilities will also increase a beneficiary's Section 8 housing rent.