Wills For Working Families

Despite your good intentions, naming your disabled niece as the beneficiary of your life insurance policy may not do her any good whatsoever.  In this final installment in this series, I explain why disabled beneficiaries should be handled with extreme caution.  This advice actually applies to all manner of property given to a disabled person – including property distributed under a Will.  The reason for caution is this: an inheritance from any source could disqualify the disabled person from receiving public benefits.

Many disabled people (children and adults) receive disability benefits through the Social Security Administration (SSA).  The SSA administers two separate disability programs, disability insurance and supplemental security income (SSI). (See Have I Worked Enough to Qualify for Social Security Disability Benefts?).  The SSI program is means tested.  Thus, in addition to proving disability, the applicant must be below a certain level of means (e.g. income and resources).  SSI benefits are particularly important as the disabled person receives not only a monthly cash benefit but health insurance through Medicaid.  A sudden increase in resources may disqualify the person from both their cash benefits and, more importantly, Medicaid. Continue reading →