spend down prior to applying for SSI

[Guest guest]

Hello

If a family is looking to spend down funds prior to applying for SSI for their

child, where can they find allowable expenses?

[Guest guest]

There is no list per se. There is also not a necessity standard so spend down

can be for vacations, hobby equipment, etc... As long as the purchase for all

goods and services is for the sole benefit of the child and not gifts for

others, it is allowable. The parents should keep receipts for all purchases and

be able to prove the expense was for the child and not for someone else.

An alternative to spend down is to transfer the disabled child's assets to a

qualified special needs trust, sometimes called an OBRA'93 trust or a " payback "

trust. A transfer to this type of trust allows immediate resource eligibility

for SSI and may in the long run make more sense as it saves the money for a

rainy day rather than spending it down on goods and services that the child

doesn't really need.

Terrie Varnet

________________________________

From: Joanne <joannepriftinicholas@...>

IPADDUnite

Sent: Sat, February 19, 2011 10:30:57 PM

Subject: spend down prior to applying for SSI

Hello

If a family is looking to spend down funds prior to applying for SSI for their

child, where can they find allowable expenses?

[Guest guest]

Unfortunately, there is no set list, however, the funds must be spent for the

SOLE benefit of the child.

________________________________

From: Joanne <joannepriftinicholas@...>

IPADDUnite

Sent: Sat, February 19, 2011 9:30:57 PM

Subject: spend down prior to applying for SSI

 

Hello

If a family is looking to spend down funds prior to applying for SSI for their

child, where can they find allowable expenses?