Specific Examples Of Persmissible Trust Distributions For SSI

Specific Examples Of Persmissible Trust Distributions For SSI

In light of the foregoing general rules, you, as Trustee, have the
discretion to make a wide variety of non-support distributions from
the Trust. Listed below are a few examples:


1. Because the home is an exempt resource, improvements and
repairs to the home should not constitute income. You could hire a
plumber, painter or other contractor to make any necessary repairs
to the house. If the recipient enjoys completing home improvement
projects, you could purchase tools and supplies. You could also use
Trust funds to hire someone to take care of the lawn, shovel snow,
etc.

2. Consistent with the above, you could also use funds from the
Trust to install a burglary alarm and monitoring/response system in
the home.

3. If a recipient is interested in attending school, you could pay
tuition, purchase books and supplies and arrange for
transportation with funds from the Trust.

4. If a recipient enjoys reading, you could purchase the latest
best sellers, enroll the recipient in a book-of-the-month club or
obtain subscriptions to favorite magazines.

5. Funds from the Trust could be used for entertainment
purposes, including: trips to the movies, plays, museums and
sporting events (e.g. Rockies' baseball games, Nuggets'
basketball, Broncos football, Avalanche hockey); the purchase of a
new television, VCR, CD or sound system; and the installation of
cable or satellite TV. If the recipient has a hobby, supplies may be
purchased related to the hobby. However, do not make a purchase
of furniture or electronic equipment if the recipient would own over
$2,000 in personal property.

6. If a recipient enjoys traveling, Trust funds could be used for a
vacation trip or to visit friends or relatives (provided that the
tickets cannot be converted to cash), as well as for a travel
companion, if needed.

7. Trust funds could also be used to purchase and maintain a car
if the recipient wishes to drive (and is able to do so safely), or for
bus passes. Payments for car repairs, gas, oil changes and upkeep
may be paid by the Trust.

8. Household goods and other items of personal property of
reasonable value (not to exceed $2,000) could also be purchased
with a portion of the Trust funds.

9. Bills for items such as cleaning, supplies and paper products
(and other sundries not constituting food or shelter), telephone
expenses, etc., could also be paid with funds from the Trust.

10. Support services, dental care, physical therapy, massages
and other medical costs, to the extent not covered by some other
public benefit program, could also be paid for with Trust funds.

11. Funds could also be used to pay for home care services
including hygiene and home cleaning assistance, to the extent
they are not covered by another program such as HCA or HCBS.

12. Almost any other purpose, provided that funds are not used
directly or indirectly for food or shelter, and any money paid is
given directly to the provider and not to the recipient.

Examples of non-permissible Trust distributions include the
following: paying shelter related expenses such as mortgage
payments, real property taxes, heating and cooling bills, electricity,
water, sewage and garbage collections; paying for groceries or
meals, or simply giving cash to a recipient for any reason. You may
not use Trust funds for anyone other than the recipient. Such use
of funds for someone else will cause the recipient to lose the SSI
benefits and constitute a breach of trust.

To Medicaid: You should keep the same records you report to
Social Security for reporting to Medicaid. Under some
circumstances, Social Security may not certify the beneficiary for
Medicaid. In that event, you will need to report to Medicaid directly
on an annual basis or after there is a change in circumstances.

To the Internal Revenue Service: A trustee is required to file a form
1041-U.S. Fiduciary Income Tax Return for any calendar year in
which the Trust earns income in excess of $600 if the beneficiary is
not disabled or $3,650 (for tax year 2010) if the beneficiary is
disabled (this figure may change annually per I.R.S. rules). If the
beneficiary is disabled the IRS should consider this Trust to be a
"qualified disability trust." Accordingly, you should consult with a
certified public accountant to discuss accounting procedures and
income tax filing requirements for the Trust.

Next: Fiduciary Obligations and Reporting Requirements