Re: SSDI and Inheritance
Depending on his age, mental state and the type of assistance he's getting from SSI, that may be the best way to go.
If he's of sound mind and not reliant on SSI, I would say the inheritance would be worth the loss of the little benefits SSI provides.
Here's a good rundown on special needs trusts.
Special Needs Trusts FAQ's
What are special needs trusts?
A trust is created when property (real estate, finances, tangible items) is managed by a person for another person's benefit. The person managing the property is called the "trustee." The person whose benefit it is for is called the "beneficiary". The trust lasts as long as it is needed. This usually means the trust will go on until the beneficiary's death or until the funds are expunged.
Special needs trusts are made specifically for the benefit of disabled or mentally ill beneficiaries. These beneficiaries lack the mental capacity to manage their own finances. The trust is created with the specific needs, lifestyle, and future of the beneficiary in mind. Often times these special needs trusts are used to ensure that the beneficiaries don't lose government benefits they are receiving. The trustees of special needs trusts can be family members or, if an appropriate and trustworthy family member is unavailable, a third party will be appointed by the court. Choosing the right trustee must be done very carefully, especially for special needs trusts that are used for the benefit of a younger person.
What are the benefits of special needs trusts?
Often times, people with disabilities qualify for government assistance such as Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing. Many people make the mistake of leaving assets to their disabled loved ones through a will. This is problematic because acquiring assets, such as a lump sum of money, can disqualify your loved one for these types of government assistance programs.
Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.