Introduction 5 402. 02 Resource Limit 5
C Countable ABLE account balances and distributions
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- 402.32 Uniform Gifts to Minors Act
- 402.32.01 UGMA and Sources
- 402.32.02 While Donee Remains a Minor
- 402.32.03 When the Donee Reaches Age 18
- Appendix A Excluded Resources
402.31.08C Countable ABLE account balances and distributions(Eff. 09/01/16) Count the amount by which an ABLE account balance exceeds $100,000 as a countable resource of the designated beneficiary. A special rule applies when the balance of an SSI recipient's ABLE account exceeds $100,000 by an amount that causes the recipient to exceed the SSI resource limit--whether alone or with other resources. When this situation happens, the Social Security Administration (SSA) places the recipient into a special SSI suspension period where: SSA suspends the recipient's SSI benefits without time limit (as long as he or she remains otherwise eligible); The recipient retains continued eligibility for Medicaid; and The individual’s eligibility does not terminate after 12 continuous months of suspension. The special suspension rule does not apply when: The balance of an individual’s ABLE account exceeds $100,000 by an amount that causes the recipient to exceed the SSI resource limit; But the resources other than the ABLE account alone would make the individual ineligible for SSI, due to excess resources If an individual is ineligible for any reason other than excess resources in an ABLE account, the special suspension status does not apply. If a designated beneficiary uses a distribution previously excluded, for a non-qualified purpose or a housing-related QDE, or the individual’s intent to use it for a qualified disability expense changes, count the amount of funds used for a non-qualified expense or housing-related QDE as a resource as of the first moment of the month in which the funds were spent. Presume that the individual’s intent to use the funds for a QDE changed as of the first of the month he or she spent the funds. If an individual’s intent to use the funds for a QDE changes at any other time, but he or she has not spent the funds, count the retained funds as a resource as of the first of the following month. 402.32 Uniform Gifts to Minors Act(Eff.05/01/06) POMS SI 01120.205 Most States have adopted the Uniform Gifts to Minors Act (UGMA) that permits making gifts that are tax free to minors. The UGMA is sometimes called the Uniform Transfers to Minors Act.
An individual (donor) makes an irrevocable gift of money or other property to a minor (the donee); The gift, plus any earnings it generates, is under the control of a custodian until the donee reaches the age of majority established by State law; The custodian has discretion to provide to the minor or spend for the minor’s support, maintenance, benefit, or education as much of the assets as he/she deems equitable; and The donee automatically receives control of the assets when he/she reaches the age of majority. 402.32.01 UGMA and Sources(Eff.05/01/06) A custodian of UGMA assets cannot legally use any of the funds for his/her own personal benefit. Therefore, The assets are not his/her resources. Additions to or earnings on the principal are not income to the custodian who has no right to use them for his/her own support and maintenance. Additions to the principal may be income to the donor before becoming part of the UGMA principal.
402.32.02 While Donee Remains a Minor(Eff.05/01/06) What IS Income to the Minor? Custodian’s disbursements to the minor Disbursements on behalf of the minor used to make certain third-party vendor payments What is NOT Income? The UGMA property Any additions or earnings 402.32.03 When the Donee Reaches Age 18(Eff.05/01/06) All UGMA property will become available to him/her. All funds in the UGMA will count as income the month the minor reaches age 18.
Table of Contents Appendix A Excluded Resources(Eff.10/01/05) Commonly Excluded Resources The following chart identifies the most commonly excluded resources. It also identifies if there are limits on the value or length of time the resource may be excluded.
Table of Contents Less Commonly Excluded Resources
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