Receiving Child Support Payments and its Impact
The Social Security Administration (SSA) defines child support payments as “a payment from a parent to meet the child’s needs for food and shelter. Child support can be in cash or in-kind; it can be voluntary or court ordered.” Child support payments are considered unearned income to the child who receives supplemental security income (SSI) benefits. For supplemental security income (SSI) purposes, according to the Social Security Act, a child is neither married, nor the head of a household and is either:
When a beneficiary wishes to purchase home from his/her settlement proceeds that are placed into a First Party Special Needs Trust with CPT, CPT, as Trustee must consider the following:
A thorough analysis of the budget and additional factors must be considered before a home purchase is approved. Why? As a Trustee, CPT has the responsibility to administer the trust in such a manner that preserves and maximizes the beneficiary’s eligibility for public benefits. If not, CPT, as Trustee will be in breach of its fiduciary duty.
When qualifying and establishing an appropriate Special Needs Trust there are certain words or verbiage that may seem a bit confusing or unclear. To lessen the confusion and increase a better understanding of specific terms we have created a list of relevant terms with appropriate definitions related to the Pooled Special Needs Trusts.
William E. Lindahl, MBA, CLPF