Legal Question in Wills and Trusts in California

It is not your issue so it will not be your "nightmare". The rules on qualifying for SSI impose on the recipient certain income limits. To the extent the inheritance pushes that person over the limit they may not qualify until the money is gone. There is an obligation of the recipient to be honest and disclose all income so, again, the issue is not yours to worry about but the sibling who is on SSI.

While an inheritance is not ordinarily considered income, the Social Security Administrations rules for SSI eligibility are different. Money or property inherited from the parents' estate would be considered income for the month in which it is received. The SSI recipient might be ineligible for the month the inheritance is received, depending on the amount of the inheritance and the amount of the recipient�s other (non-SSI) income, if any. After the month of receipt, the inheritance becomes part of the disabled individual's resources. An individual cannot have more than $2,000 in resources to remain eligible for SSI.

If either of your parents are still living, they (or the surviving parent) should speak with a trust attorney regarding a special needs trust for their disabled adult child. A special needs trust can protect the disabled son/daughter's share of the estate, while preserving that child�s entitlement to Social Security disability.

A special needs trust essentially keeps ownership of the inheritance away from the would be heir on SSI, appoints a third party to over see it, and restricts use for needs of the disabled person not covered by SSI.