New SSA Rules: Regarding Payments for “Food” by Special Needs Trusts and Family

Starting on September 30, 2024, “food” will be removed from the calculations of In-Kind Support and Maintenance (ISM). This will allow Supplemental and Special Needs Trustees as well as family members an additional way to help loved ones that receive SSI and related benefits.

SSI is a monthly cash payment for food and shelter.  To be eligible for this program, a beneficiary must be aged, blind, or disabled, and have income and assets low enough to meet the SSI/Medicaid requirements.  Cash income to the SSI recipient reduces his or her income dollar-for-dollar.  In most cases, if the SSI payment is eliminated, the accompanying Medicaid will also be eliminated.  It is crucial in administering the trust never to pay cash to the Beneficiary.

ISM is any payment from a third party (including a trust) for the necessities of life— historically food and shelter. However, starting next week, food will be removed.

According to a government website: “disabled individuals are more likely to be food insecure, and this policy change will remove critical barriers to receiving informal food assistance from friends, family, and community networks of support.” Federal Register :: Omitting Food From In-Kind Support and Maintenance Calculations

SSI qualifications, eligibility and ISM calculations should be carefully examined. When in doubt, it is generally best not to make a payment that could accidentally remove someone’s SSI, Medicaid, SNAP or other public benefits.

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