Because of their disability, a person receiving Supplemental Security Income (SSI) may not have worked long enough to qualify for Social Security Disability Insurance (SSDI) benefits on their own work record. Therefore, once they meet the government’s strict physical or mental disability requirements and fall under SSI’s income and asset caps, the SSI recipient might assume that they will never obtain SSDI benefits in the future.
However, this is not always the case. In fact, many SSI recipients who became disabled prior to turning 22 years old may begin to receive SSDI benefits when one of their parents retires, becomes disabled, or passes away.
Can a Grown Child Collect Parents’ Social Security?
SSI recipients (and anyone else, for that matter) may qualify for the Disabled Adult Child (DAC) Program if they became disabled prior to turning 22, one of their parents paid into the Social Security program for the required number of quarters, and they are not eligible for SSDI on their own work record.
If the parent retires or becomes disabled, the child will receive up to 50 percent of the parent’s Social Security benefit. If the parent dies, the payment increases up to 75 percent of the parent’s benefit. These payments trigger when the parent applies for Social Security, or someone informs the Social Security Administration (SSA) of the parent’s death and about the child with disabilities. Once informed, the SSA will begin making SSDI payments directly to the disabled adult child.
Commonly Asked Questions
What happens to SSI payments when a beneficiary is receiving SSDI benefits?
An eligible beneficiary can receive both SSI and SSDI payments BUT, the SSDI payments will reduce the SSI payments 1-for-1 after a $20 dollar monthly exemption. For example, if SSI was $1,000 per month and the recipient qualified for $500 of SSDI benefits, then they would receive $520 from SSI and $500 from SSDI for total monthly benefits of $1,020 ($1,000 SSI - $500 SSDI + $20 exemption).
If the SSDI payments are more than $20 dollars than the beneficiaries SSI payments, then they will no longer be eligible for SSI payments.
Will the beneficiary lose Medicaid benefits if they no longer qualify for SSI?
Fortunately, congress passed a law to ensure that Medicaid benefits are not lost if:
- The beneficiary would be eligible for SSI benefits if it wasn’t for the DAC program.
- They had a special need before the age of 22; and
- Are unmarried or married to another beneficiary who is receiving DAC benefits.
How is SSDI connected to Medicare?
All SSDI beneficiaries qualify to sign up for Medicare benefits after receiving SSDI benefits for 2 years. This vastly opens the number of health insurance options available to people with special needs.
If you find yourself navigating through the complexities of social security benefits or have questions about your specific situation, don’t hesitate to reach out to an advisor at Van Hulzen Financial Advisors. Our team is here to provide clarity and guidance tailored to your needs. Take the first step towards securing your financial future by contacting us today.
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