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Aug 11, 2026
Individuals in Charlotte and throughout North Carolina can seek Supplemental Security Income if they meet the various financial and personal requirements. These include having resources under a certain level, as well as being blind, disabled or over the age of 65. Some people have various financial situations that might call their eligibility into question. Do trusts affect my SSI benefits? The Social Security Administration addresses how having a trust might affect a person’s ability to be approved when applying for SSI benefits.
A trust allows one party to control property for another’s benefit. A person who is getting SSI can have a trust in some cases. In that trust, there can be cash and other liquid assets as well as property that can be transitioned into cash. In general, the trust will be considered a resource when applying or retaining SSI. With a revocable trust, the entire trust is the person’s resource. With an irrevocable trust, if there are parts of the trust in which payments could be made to benefit the person, then that amount will be viewed as a resource. Resources are a key factor in determining a person’s eligibility for SSI.
It is important to remember that there are generally certain properties that will be considered assets for SSI eligibility determination purposes. Income that is countable and excluded, resources that are also counted and excluded, and property or payments that the person has a right to have but does not get are considered assets. Special needs trusts and pooled trusts are not taken into consideration when making an SSI determination. Those who are seeking benefits and have a trust must be aware of the kind of trust they have as it could affect their ability to get SSI.
Current SSI Resource Limits
Before looking at how a trust is treated, it helps to know the baseline. The Social Security Administration counts resources, meaning cash and things a person could convert to cash, against a strict ceiling. The limit for countable resources is $2,000 for an individual and $3,000 for a couple. This limit is the reason a trust holding even modest savings can push a disabled or elderly applicant over the edge and out of eligibility, which is exactly why special needs and pooled trusts exist as a planning tool.
How In-Kind Support and Maintenance Affects an SSI Payment
Money that is not the applicant’s resource can also affect SSI. Any money paid directly to an SSI claimant will reduce their SSI. If the money is paid directly to a person who is providing food and shelter for the claimant, the payment is treated as in-kind support and maintenance, or ISM, and the SSI award can be reduced. the SSI Federal Benefit Rate for 2026 is $994.00 a month, and receiving in-kind support and maintenance can reduce a monthly SSI payment by as much as $351.33 for 2026, which is the current presumed maximum value SSA applies to cap ISM reductions. Money that is paid to someone who provides medical care, pays for school, telephone bills, and other items for an SSI claimant will not affect SSI. See the current SSI living arrangement rules.
A 2024 Rule Change Removed Food From the ISM Calculation
Trustees and family members should know about a significant policy shift that affects how trust funds can be used. The Social Security Administration published a final rule, “Omitting Food from In-Kind Support and Maintenance (ISM) Calculations.” Under the final rule, beginning September 30, 2024, the agency no longer includes food in ISM calculations. This means a special needs trust, a family member, or a friend can now pay for groceries or meals for an SSI recipient without triggering a benefit reduction. Shelter costs such as rent, mortgage, and utilities are still counted as ISM, so trustees still need to plan carefully around housing expenses.
Special Needs Trusts and SSI: Protecting Eligibility
A special needs trust, sometimes called a supplemental needs trust, is built specifically to hold assets for a person with a disability without counting against the SSI resource limit. There are generally three kinds of special needs trusts:
- Third-party special needs trust: funded with assets that never belonged to the disabled beneficiary, often set up by a parent or grandparent as part of estate planning.
- First-party (self-settled) special needs trust: funded with the beneficiary’s own money, such as a personal injury settlement, inheritance, or Social Security back pay.
- Pooled special needs trust: managed by a nonprofit organization that combines the resources of many beneficiaries for investment purposes while keeping separate accounts for each person.
First-party trusts are governed by federal Medicaid law. Section 1917(d)(4)(A) of the Social Security Act, codified at 42 U.S.C. 1396p(d)(4)(A), allows these trusts to be established for the benefit of a disabled individual. For years, only a parent, grandparent, legal guardian, or a court could set one up on the disabled person’s behalf, even if that person was mentally competent to manage their own affairs. The Special Needs Trust Fairness Act, part of the 21st Century Cures Act, amended the law to allow the individual to establish his or her own self-settled special needs trust, effective for trusts established on or after December 13, 2016. This gave capable adults with disabilities the ability to set up their own trust without going through a parent, guardian, or court proceeding.
A properly drafted and funded special needs trust of any type can hold significant assets while the beneficiary continues to receive SSI and, in most cases, Medicaid. Review the SSA’s official guidance on trusts. Getting the trust language and funding wrong, however, can cause SSA to count the trust as an available resource, which can delay or deny benefits.
People who have a trust or are considering having a trust set up should be aware of how this is viewed by the SSA with regard to SSI benefits. Because trust review is a technical area of law, even experienced field office staff can misapply the rules, which makes the language of the trust document and the source of its funding critical from day one. A legal professional who understands the details of SSI Supplemental Security Income may be able to help with understanding trusts and what they mean with SSI.
Bridgman Gantt Law Offices has represented Social Security disability and SSI claimants across North Carolina since 1981. The firm’s founding attorney, David Gantt, chaired the Disability Advocate Section of the North Carolina Advocates for Justice, a leadership role focused specifically on Social Security disability advocacy. If a trust or resource question is putting your benefits at risk, contact Bridgman Gantt Law Offices for a free consultation before you fund or restructure anything.
Frequently Asked Questions
Does a special needs trust count against my SSI resource limit?
No, not if it is properly drafted and funded. A trust that meets the requirements for a first-party, third-party, or pooled special needs trust is excluded from the $2,000 individual resource limit. A trust that does not meet those requirements, such as a general revocable trust the beneficiary controls, is generally counted as a resource.
Can I set up my own special needs trust in North Carolina?
Yes, if you have the mental capacity to do so. Since the Special Needs Trust Fairness Act took effect for trusts established on or after December 13, 2016, adults with disabilities have been able to establish their own first-party special needs trust rather than relying on a parent, grandparent, guardian, or court.
How much can a trust pay for my food or shelter before my SSI is reduced?
As of the 2024 rule change, food paid for by a trust no longer reduces SSI at all. Shelter costs such as rent and utilities still count as in-kind support and maintenance, and the maximum monthly reduction for 2026 is $351.33, regardless of how much the trust actually spends on shelter.
What happens if my trust is not set up correctly?
If SSA determines the trust does not meet the special needs trust requirements, it may count the full value of the trust as a resource, which can push the beneficiary over the resource limit and result in a denial or suspension of SSI. A trust document should be reviewed by an attorney familiar with SSI and Medicaid rules before it is funded.
Source: Social Security Administration, “Spotlight On Trusts,” accessed August 2026
North Carolina Supplemental Security Income Resources:
