Can beneficiary of first party special needs trust add money to it?

October 3, 2024 1:05 PM

My BIL recently established a SNT in Minnesota to shelter a settlement from affecting benefits eligibility. Can he add money to it, and if so does it matter where the money comes from?

He temporarily has some Workman's Comp insurance income in addition to money coming from SSDI. His rent is low and, if we help him budget, he may be able to put aside some additional savings.

Can he simply add money to the trust, or would that cause issues? I've been looking all over for the answer and nobody seems to be addressing it. If he can add money, does it matter where the money comes from?

If you can answer -- preferably with reference to an official document, statute or whatever -- or direct me to an SNT trustees forum or something, that would be helpful. Thanks.

posted by Chlorine to Work & Money (2 answers total)

THIS IS NOT LEGAL ADVICE. Benefits law is very complex, and you would be well advised to speak to a lawyer in this area. The definition of "assets" for a first-party SNT under federal law includes money to which the beneficiary is entitled but which they have not yet received, which suggests that money can be added later (which also only makes sense as, e.g., a beneficiary may receive an inheritance from more than one person over time). This chart indicates that there is no limit on annual contributions to a first-party SNT (but note no third party may contribute).
posted by praemunire at 7:00 PM on October 3

(Also, please note the restrictions on receiving worker's comp while on SSDI!)
posted by praemunire at 7:02 PM on October 3