Does a special needs trust need to be approved by the SSA?
Yes, your special needs trust must be approved by the Social Security Administration if you receive supplemental security income.
Why does my special needs trust have to be approved?
Special needs trusts are a way to qualify for government benefits when you have too many assets or too much income. Everything in the trust is not counted against you for purposes of receiving the benefits. But for the trust to work, it has to meet certain requirements that are mandated by law. The Social Security Administration (SSA) needs to make sure that your trust meets those requirements before it qualifies you for benefits. Getting the trust approved is required for a first-party special needs trusts, and it is advisable to do it with third-party special needs trusts as well. You never go wrong by over-reporting to the SSA.
How do I get my special needs trust approved?
To get your trust approved, it should be submitted to the SSA as soon as possible, especially if the beneficiary is currently receiving benefits. You (or your attorney) will need to submit the declaration of trust for a D4A disability trust. If you are instead using a D4C pooled trust, you should submit the master agreement and account information for the trust. I also like to send copies of relevant pages from the SSA’s own manual to help ensure that the correct standards of review are used.
Everything is submitted to the SSA local field offices. These offices make the initial determination as to whether the assets in the trust are countable. The office then forwards its decision to a Regional Trust Review Team, which makes the final decision. To find your SSA local field office, go to the SSA website.
What do I do if the SSA will not approve my trust?
If the SSA is stating your special needs trust does not meet the requirements, then you should meet with a special needs trust attorney to help you revise your trust. The reality is that the rules for special needs trusts are complex. Even some lawyers mess it up. Your best option is to find a lawyer that understands this area of law so that you can start getting the benefits you need.