Social Security Administration Revises Policies Regarding Trusts
The Social Security Administration has revised its Program Operations Manual System (POMS) to allow Self-funded Special Needs Trusts to pay for travel expenses incurred by family members to visit the disabled beneficiary. The revised POMS also allow payment of some administrative expenses upon early termination of the trust, including trustee fees. Notably, the new SSA rules expressly permit payments from Special Needs Trusts “to a third party that results in the receipts of goods or services by the trust beneficiary.” Previously, SSA objected to reimbursement to third parties for purchases on behalf of a trust beneficiary and counted such reimbursement payments as “income” which could reduce or eliminate beneficiary’s Supplemental Security Income and/or Medical Assistance eligibility. This new provision provides substantial new flexibility to trustees in arranging for benefits and services to be provided to beneficiaries of Special Needs Trusts. These payments must be for non-cash items other than food or shelter to avoid being treated as income. – See more at: http://www.mcandrewslaw.com/news-events/press-releases/#sthash.gFRylS2D.dpuf
