Proposed Rules By The Social Security Administration
by
Herbert D. Hinkle, Esq. and S. Paul Prior, Esq.
Hinkle & Fingles, Attorneys at Law
2651 Main Street
Lawrenceville, New Jersey 08648
(609) 896-4200 or (215) 860-2100
In January 2004, the Social Security Administration proposed several
key changes concerning Social Security Income (SSI).
First, the definition of “income” has been simplified by eliminating
gifts of clothing from in-kind support and maintenance. For example,
until now, money spent by a parent on clothing for an adult child
counted as income, and could lead to a reduction and even elimination
of SSI benefits. The loss of SSI, in turn, means the loss of Medicaid,
so the consequence of well-intended gifts could be catastrophic.
The second change involves valuation of household goods and personal
effects. Before the change, an applicant could not have more than
$2,000 worth of household goods and personal effects. The rule change
eliminates the need to value such items by excluding all such items
from consideration.
The rule regarding an automobile is also simplified. Before, an
applicant could not have an automobile worth more than $4,500 unless
they need it for employment or to obtain medical treatment on a
regular basis. Now, an automobile is disregarded altogether.
Over the years, the authors have critiqued special needs trusts
drafted by other attorneys which prohibit expenditures for food,
clothing and shelter. The authors believe such trusts were too
specific and, as these rules demonstrate, have now become overly
restrictive. Readers should make sure their trust arrangement does not
include unnecessarily restrictive and archaic language.
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Herbert D.
Hinkle, his partner, Ira M. Fingles and their colleague, S. Paul
Prior, maintain a statewide
law practice with offices in Lawrenceville, Marlton, and Florham Park,
New Jersey, and Yardley, Pennsylvania. They lecture and write frequently
on topics of law, aging, disability and estate planning and are available
to speak to groups in New Jersey and Pennsylvania
at no charge.
Comments and suggestions
for future articles should be mailed to: Hinkle & Fingles, 2651 Main Street, Suite A, Lawrenceville, New Jersey 08648-1012.
Copyright 2004
Herbert D. Hinkle. All rights reserved.
