SSI

Draper v. Colvin, Part-5 – Parent-Established First-Party Special Needs Trust – Analysis.

Did Draper’s parents properly establish the Parent-Established First-Party Special Needs Trust for their daughter?  The appellate court commented that “[a]dmittedly, some evidence in the record supports Draper’s claim that her parents intended to act in their individual capacities [as opposed to acting as agents under a power of attorney].” {Draper v. Colvin, (2015) 779 F.3d 556, 564.} But the court rejects their arguments, showing how those facts did not result in a valid special needs trust, at least in this case.  

Draper v. Colvin, Part-4 – What is a Dry Trust?

An interesting issue concerning a “dry” special needs trust arose in the Draper case. The issue arose in part, because the POMS, POMS SI 01120.203, makes reference to both a “seed trust” and “dry trust” as options that can be used for a parent-established, child-funded first-party special needs trust.  This post will consider what a Dry Trust means.  

Draper v. Colvin, Part-3 – The POMS Two-Step Process of Parent-Established First Party Special Needs Trust.

How to Establish a Valid SNT under the POMS in California.

Draper v. Colvin found the POMS in question, POMS SI 01120.203, controlling on how a parent should establish a first-party special needs trust with a child’s assets.  what the SSA regards as a valid special needs trust.

Draper v. Colvin, Part-2 – Formation of the First-Party Special Needs Trust – Background Facts.

The background facts are necessary to analyze how the SSA found this first-party special needs trust to be invalid.  Defects in the formation, such as found here by the SSA, require termination and establishment of a new special needs trust.

Draper v. Colvin, Part-1 – Special Needs Trust Established by Parent with Child’s Assets – Introduction.

A first-party special needs trust, reviewed by the SSA, was found to be invalid.  Therefore, the trust assets are countable to the beneficiary/SSI recipient, who becomes ineligible for SSI.  If the Trust assets exceed $ 2,000.00, which is the asset limit, he or she becomes ineligible for SSI.  This series of posts will look at the Draper case, and consider the question of how can a parent establish a special needs trust for their child with a disability, that is to be funded with assets belonging to their child and not be found invalid, with the consequence of making the child ineligible for SSI and categorically-linked Medicaid.

The SSI Appeal Process

The Social Security Administration (“SSA”) makes determinations concerning eligibility for SSI or SSDI, or which affect the amount of the monthly check.  When an applicant for or a recipient of Supplemental Security Income (“SSI”) is dissatisfied with such a determination by the SSA, he or she has the right to have the decision reviewed. This begins what is known as the “administrative review process,” or “appeals process.” {20 C.F.R. § 416.1407.} The POMS also provides an overview of the appeals process. {SI 04005.010.}