How to Build a Trust from Inheritance While on SSDI

Save

If you receive Social Security Disability Insurance benefits and have recently received an inheritance out of which you want to create a trust, you might be concerned about how the inheritance and trust will effect your SSDI benefits. Because only earned income counts against your SSDI benefits, the inheritance and trust will not affect your benefits at all. You only need to plan how to create the trust.

Determine what type of trust you want to create. Trusts can be created in many different ways. You can create a trust that pays a set amount of money out to the beneficiary at regular time intervals. You can also create trusts that pay an entire lump sum after a certain event. Many other options are available.

Research the laws in your state concerning trusts. Every state is different, so you will need to determine what trusts are possible in your state and how to create them. No one can tell you what is permissible in your state without knowing the state you are in.

Pick a trustee for the trust. This is the person who is responsible for the money in the trust. The trustee is required to handle the trust assets as a reasonably prudent investor and for the benefit of a beneficiary. Banks and trust companies will act as trustees for a fee.

Draft the trust. How you do this depends upon what type of trust you want to create and the laws of your state. In general, a trust is created by writing "I, [your name], give my inheritance to [trustee's name] in trust for [beneficiary's name]."

Related Searches

References

Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!