POMS Change on Sole Benefit Trusts

On May 17, 2012 the Social Security Administration published a change to the POMS (Social Security Manual) regarding Trusts.  Although the change only added two examples to the long-standing policy on sole benefit trusts, there was a surprise.

Example 1 to SI 01120.201 F. indicates a potential change in policy regarding what expenses will be allowed for sole benefit trusts.  Travel is often paid from Special Needs Trusts.  Under the change, the Administration will consider a Special Needs Trust that allows for payment of travel for family members to come and visit the beneficiary to be in violation of the sole benefit rule.  This would negate the protection of the SNT.  So, no paying for travel of visitors.  This goes for SSI recipients and all Medicaid recipients in Florida.

We are able to continue to pay for beneficiaries to travel and take vacation. Please contact our office with any questions or concerns.













Travis D. Finchum, Esq.
Co-Trustee, Guardian Trust

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