Special needs planning involves understanding what types of benefits an individual receives or may receive in the future and whether they are means-tested. “Means-tested” means that eligibility for the benefits depends on having limited income, assets, or both. The most common types of income for individuals with disabilities who are unable to maintain gainful employment are Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). This blog post will highlight the SSI benefit.

The Social Security Administration (SSA) manages the means-tested public assistance program called SSI. This program provides financial support to help cover the cost of necessities. To qualify, an individual must meet Social Security’s definition of “disabled” or be at least 65 years old. “Disabled” means that the individual cannot engage in substantial gainful activity because of a medically determinable physical or mental impairment expected to last a year or longer or end in death. In 2025, if a nonblind disabled individual earns more than $1,620 per month, they are engaging in substantial gainful activity. For blind individuals, the amount is $2,700 per month.

The maximum monthly SSI federal benefit rate in 2025 is $967 for a single individual and $1,450 for a couple. These numbers adjust for inflation each year. Additional earned or unearned income may reduce the monthly benefit amount. Unearned income could be cash gifts, payments from annuities and pensions, alimony and support payments, dividends, interest, rent payments, awards, or payments from other benefit programs. Unearned income reduces the SSI benefit dollar for dollar, after the first $20. Earned income includes wages, royalties, and net earnings from self-employment. This type of income reduces the SSI amount by one dollar for every two dollars of income after the first $65.

In-kind support and maintenance (ISM) is when someone else provides shelter to the individual or pays for shelter expenses, including when a special needs trust pays for these items. As of September 2024, food has been removed from the definition of ISM. Shelter expenses include mortgage, rent, real property taxes, gas, heating fuel, electricity, water, sewer, and garbage removal. ISM reduces the recipient’s SSI benefit dollar for dollar, but the reduction is capped at either one-third of the federal benefit rate or one-third plus $20, depending on the individual’s living arrangement.

SSI has the most restrictive asset rules of all the public benefit programs. The asset limit is $2,000 for an individual and $3,000 for a couple. The recipient must have less than this in countable assets at the close of each calendar month to remain eligible for SSI. Noncountable assets include a primary residence, one vehicle, and household items.

If an SSI recipient gives assets away without receiving fair market value, SSA imposes a transfer penalty. A transfer penalty is a period of ineligibility for SSI. SSA calculates the transfer penalty by dividing the value of the transfer by the monthly federal benefit rate. The result is the number of months that the individual is ineligible for SSI, up to 36 months maximum. There are exceptions to the transfer penalty rules, such as transfers to a spouse, a child with a disability, transfers of the home to certain individuals, and transfers to some types of trusts.

SSI is one of the most important public benefits, not just because of the monthly income, but because of the social and medical support services that often accompany this benefit. Individuals who receive SSI automatically also receive Medicaid. Medicaid eligibility opens the door to other social and community services such as case management, job training, community activity programs, and shared living.