Monthly Social Security and Supplemental Security Income (SSI) benefits will increase 1.7 percent in 2015. Changes are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax will increase to $118,500 from $117,000. Of the estimated 168 million workers who pay Social Security taxes, approximately 10 million will pay higher taxes in 2015 due to the increase in the taxable maximum income figures.
More than 8 million disabled persons receive SSI which limits a recipient’s countable financial resources to no more than $2,000 as a condition of eligibility. Thus, receipt of windfalls through lottery winnings or inheritances can cause a person to lose SSI benefits. In such cases, funding certain trusts with the windfall can preserve the assets AND the SSI benefits. In the latter example, parents can leave future inheritances to a Supplemental Needs Trust or Special Needs Trust for the benefit of a disabled child while ensuring ongoing receipt of SSI.
For more information on Supplemental Needs Trusts, feel free to contact any of our Massachusetts asset protection attorneys.
Regards,
Eric R. Oalican