What is a supplemental security income (SSI) trust?

A supplemental security income (SSI) trust is a type of trust used in South Carolina disability planning law to help those with disabilities manage and protect their income. In a SSI trust, a third party trustee holds and invests the assets of the trust for the benefit of the trust beneficiary. The trust provides protection for the beneficiary’s financial resources and help them stay eligible for Supplemental Security Income (SSI) and other means-tested public benefits. The SSI trust must be a well-drafted trust document that meets the requirements of the Social Security Administration (SSA). Those requirements include that the trust must be established by the beneficiary, or his or her parent, grandparent, legal guardian or a court, and must name a trustee who is not the beneficiary or a family member. The trust must also be irrevocable, meaning that it cannot be changed or canceled. The trustee of a SSI trust has the authority and responsibility to make decisions about how the trust assets are invested and managed, and how the trust’s income and other resources are allocated. The trustee can decide to provide funds for the beneficiary’s living expenses, medical care and other needs. The trustee must make sure that the trust meets all of the SSA rules and regulations and that the beneficiary does not receive more than the necessary amount of income and resources to maintain their eligibility for SSI and other public benefits.

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What is a supplemental security income (SSI) trust?

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