Can a trust be set up for a person that is on disability without affecting their income?

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Can a trust be set up for a person that is on disability without affecting their income?

The person is on disability, the checking account is in the
representative name for this person, if the account goes
over 2000.00 we have to give the money back.

Asked on December 19, 2016 under Estate Planning, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No. ANY money available to, paid to, or under the control of a person counts towards his or her income (or at least is potentially countable towards it, under the rules for the relevant benefit): the structure of ownership (e.g. by the person or by a trust) does not generally matter, since the law does not let you get public benefits, like disability, when you otherwise would not qualify simply by putting assets or income into a trust. Before anything is done, the person and his/her trustee(s) should consult with an attorney who handles disability to understand what can and cannot be done safely.


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