SSI, Pooled Trusts, Penalties, oh my!
We have posted several times in the past few years about being able to utilize a Pooled Special Needs Trust (SNT) in Florida for individuals ranging from newborns to centenarians. The good news is that individuals of any age can still utilize a Pooled SNT for Medicaid purposes with no problem . However, if the person is age 65 or older we need to also ask the question - are they receiving Supplemental Security Income (SSI) benefits? We still frequently field inquiries regarding individuals over age 64 that are looking to maintain their SSI income, as well as their Medicaid benefits, by using a Pooled SNT. Unfortunately, Social Security penalizes individuals that are over age 64 who are receiving SSI if they fund a Pooled Trust. The penalty is one month for every $735 put into the Pooled Trust, up to a maximum of 3 years . The $735 figure comes from the maximum monthly SSI benefit as of January 1, 2017. Note, the maximum SSI penalty is only 3 years and not 5 years lik