---
title: Legal & Financial Planning — SSI & SSDI
scope: TODO_SCOPE
covers:
- trust
- able
- guardianship
- estate
not_covered: []
sources:
- 20240915_Stephanie_Coleman_KU_LEND
- 20241020_Lois_Ferguson_IDD_Waiver
- 20260315_Sarah_Otto_Case_Management
- 20260719_Tyler_Davidson_Financial_Picture
last_updated: '2026-07-19'
token_estimate: 1219
parent: https://fwmparents.org/resources/legal-financial-planning/index.md
---

# Legal & Financial Planning — SSI & SSDI

- Our special needs childrend do not qualify for SSDI (which requires paying into Social Security) they qualify for SSI — *[Stephanie Coleman, Sep 2024](https://fwmparents.org/sessions/20240915_Stephanie_Coleman_KU_LEND/notes.md)*

- If our child is on SSI and we pass away, they can collect our SSDI — *[Stephanie Coleman, Sep 2024](https://fwmparents.org/sessions/20240915_Stephanie_Coleman_KU_LEND/notes.md)*

- Currently $943/month — *[Stephanie Coleman, Sep 2024](https://fwmparents.org/sessions/20240915_Stephanie_Coleman_KU_LEND/notes.md)*

- **Apply 1 month before your child turns 18yo** — *[Stephanie Coleman, Sep 2024](https://fwmparents.org/sessions/20240915_Stephanie_Coleman_KU_LEND/notes.md)*

- If denied, automatically appeal — often they won't tell you why until you appeal — *[Stephanie Coleman, Sep 2024](https://fwmparents.org/sessions/20240915_Stephanie_Coleman_KU_LEND/notes.md)*

- Marriage penalty: 2 people on SSI go from $943/mo each to $1400/mo together — *[Stephanie Coleman, Sep 2024](https://fwmparents.org/sessions/20240915_Stephanie_Coleman_KU_LEND/notes.md)*

- When your child turns 18: apply for SSI and SSDI **THEN** apply for Medicaid (call DDO for explanation of why this order matters) — *[Lois Ferguson, Oct 2024](https://fwmparents.org/sessions/20241020_Lois_Ferguson_IDD_Waiver/notes.md)*

- Maintain detailed medical documentation and schedule phone interviews when applying — the system focuses heavily on treatment history — *[Sarah Otto, Mar 2026](https://fwmparents.org/sessions/20260315_Sarah_Otto_Case_Management/notes.md)*

- Understand how wages interact with benefits if the individual works while receiving SSI — *[Sarah Otto, Mar 2026](https://fwmparents.org/sessions/20260315_Sarah_Otto_Case_Management/notes.md)*

- **There are essentially four Social Security income paths**, not three: SSI (need-based), SSDI (on the child's own work record), the **Disabled Adult Child (DAC)** benefit on a *parent's* record, and retirement/survivors. Use the [Social Security Planning Tool](https://fwmparents.org/resources/planning-tools/social-security-planning/) for an interactive estimator and a fully cited comparison of all four — *[FWM Planning Tools](https://fwmparents.org/resources/planning-tools/social-security-planning/)*

- **DAC / Childhood Disability Benefits (the "fourth path"):** a child whose disability began **before age 22** can collect on a parent's record once the parent retires, becomes disabled (**≈50%** of the parent's benefit), or dies (**≈75%**). It is *not* means-tested and has **no asset cap** — *[SSA: Benefits for Children With Disabilities](https://www.ssa.gov/pubs/EN-05-10026.pdf)*

- **The SSI ↔ DAC offset ("every dollar they get, they lose a dollar"):** a DAC benefit counts as unearned income and reduces SSI roughly dollar-for-dollar after the $20 exclusion — SSI reaches $0 once DAC tops **~$1,014/mo** (2026) — but total income usually **rises** and Medicaid is kept via §1634(c) — *[SSA: Understanding SSI Income](https://www.ssa.gov/ssi/text-income-ussi.htm)*

- The 2026 SSI federal benefit rate is **$994/mo** (individual); the $2,000 resource cap is unchanged since 1989 — *[SSA: 2026 SSI amounts](https://www.ssa.gov/oact/cola/SSI.html)*

- **Substantial Gainful Activity (SGA, 2026):** $1,690/month gross (non-blind) or $2,830 (blind) — earn below it and SSDI continues; above it, SSDI generally stops (subject to work incentives) — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- **Earned-income math:** SSI drops roughly $0.50 per dollar earned after a $20 general exclusion, a $65 earned-income exclusion, and IRWE. Example: full SSI $994 + a $500/month job with $100 of IRWE → $157.50 reduction → net take-home $1,336.50 — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- **Impairment-Related Work Expenses (IRWE):** disability-related costs needed to work (service animal, *specialized* transportation, adaptive equipment) are deductible from countable income — keep records. A regular bus fare doesn't count; a hired driver because no route exists does — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

---

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