People who live with disabilities often have less income and fewer assets than the rest of the population. If you depend on public benefit programs, it can be especially hard to think about saving money for the future, because public benefits programs don’t supply you with much income and many programs, like Supplemental Security Income (SSI) and disability-based MO HealthNet, have asset limits that make it hard to save money and build up assets. However, there are ways of building up your assets even if you are on public benefits. This article will explain how to do that.

Building up your assets means accumulating wealth by saving money or investing it. Building up assets can include putting money into the bank, buying stocks, putting money into a retirement account, or buying a home. It’s important to learn about how to save up money and build up your assets for many reasons:

• Assets are an important part of becoming financially secure and more independent.
• With assets, you will be able to cope with unexpected expenses that may come up.
• Building up your assets can help you achieve your goals, like paying for school, going on vacation, buying a computer, starting a business, or even owning your own home.

Even if you face obstacles that make it hard to save money, building up assets should be a priority. The economic stability that comes with assets can help you meet your goals, let you work toward freedom from dependence on benefits, and build up your wealth. The good news is that anybody can build up assets, even people who have low incomes or who are on public benefits.

Financial Literacy

Developing a general understanding of money and finances — called “financial literacy” — is important for everyone. Financial literacy includes skills such as budgeting and long-term financial planning. Financial literacy is especially important if you have to follow the strict rules about income and resources that many public benefits programs have.

Learning about finances can help you do big things, like pay for college, buy a house, or plan for old age. It can also help you stay away from scams and prepare for unexpected expenses and difficult life events.

There are several reasons financial literacy is especially important for people with disabilities:

• People with disabilities often have higher out-of-pocket costs for everyday activities.
• People with disabilities may have high medical costs. In fact, medical debt is a major cause of bankruptcy for all people.
• Relying on public benefits programs is hard. There are a lot of rules and restrictions about money and assets that most nondisabled people don’t ever have to think about.

For general information about financial literacy, with tips and tricks on how to save, have a look at Money Management International.

If you have a disability that began before you turned 26 and meets the Social Security Administration's disability standard, you can open an ABLE account. (The SSA has different disability standards for children, for adults, and for blindness.) An ABLE account is a financial account that can help you:

• Build assets in an account that has tax advantages. Your investments in an ABLE account won’t be taxed, so your wealth will grow faster. Plus, If you work and save earned income in your ABLE account, you may qualify for the federal Saver’s Credit and for a deduction on your state taxes.
• Use your savings on many types of expenses. There are rules about spending the money in your ABLE account, but there’s also a lot of flexibility.
• Save up money without losing benefits. Many benefits programs have resource limits, but:
  • You can have up to $100,000 in your ABLE account and keep getting Supplemental Security Income (SSI) benefits, as long as you meet all other SSI rules. If you go over $100,000, SSI benefits will stop, but they will start up again if your ABLE account drops back below $100,000 and you won't have to reapply.
  • For MO HealthNet and Supplemental Nutrition Assistance Program (SNAP), the money in your account will not affect your benefits, no matter how much you have.
  • The money in your ABLE account may not be counted for some other benefits. Check with program representatives to make sure.

The bottom line: An ABLE account means that you can save up money without losing your benefits. It also lets family and friends give you money without affecting your benefits.

Note: After you die, money in your ABLE account may be used to pay back the MO HealthNet program. Look into third-party Special Needs Trusts if this is an issue for your family.

Opening an ABLE Account

There are a few main rules for opening an ABLE account:

• You can only open an account through a state-designated program or institution.
  • Missouri's ABLE account program is MO ABLE, which is only open to Missouri residents.
  • You can choose to open an account in another state’s ABLE program.
• You can only open one ABLE account. (You cannot open accounts in more than one state.)
• You must have a disability that qualifies for an ABLE account and that began before you turned 26.
  • You can be more than 26 years old when you open your account – all that matters is when your disability began.

You can only have an account if you have a disability. However, another person, such as a parent or guardian, can help manage the account.

Comparing State ABLE Programs

Some states offer ABLE accounts and others don’t. Missouri's ABLE account program is MO ABLE, which is only open to Missouri residents. Even if your state has an ABLE program, you should compare different state ABLE account programs to see which state’s program is best for you.

Important: There is a state tax deduction you can get if you use Missouri's ABLE program. Learn more about the state tax deduction.

When you compare ABLE programs, think about these questions:

• How easy is it to put money in the account and take money out for qualifying expenses? For example, does it come with a debit card?
• How good is customer support? Try calling the program to see whether it seems helpful.
• What investments does it offer? Each state program offers different investment options. Choose a program that offers investments matching your needs.
• What fees does the program charge? There may be fees for opening the account and for keeping money in it.
• Is the Missouri state tax deduction important for you? If so, stick with Missouri's ABLE program. Learn more about the state tax deduction.

Note: You can switch your ABLE account from one state program to another. You do not have to stick with the state program you choose.

Compare the ABLE account options in different states.

Rules on Depositing Money in an ABLE Account

There are two limits on how much can be put in an ABLE account in a calendar year:

• Up to $18,000 from any source (including your family and friends, your benefits, and other unearned income
• Another $14,580 from your own earned income (if you have a job).
  • Note: If you or your employer make contributions to a retirement plan set up by your employer, you might not qualify for the extra ABLE contribution amount based on having a job (you can still make regular ABLE contributions). If you aren't sure about this, ask your ABLE account program or check with a tax expert. Get more information about this rule from the ABLE National Resource Center.

Note: This means that if you earn ABLE-contribution-limit-earned or more, you could have a total of up to $32,580 go into your ABLE account in a year. If you earn less than $14,580, the amount you could contribute would be lower.

Important: You need to keep good records, to make sure that too much money isn’t put into your account.

State ABLE programs also have limits on the total amount in your account — typically $200,000 to $500,000, depending on the state. For example, a state program might say that if you have $400,000 in your ABLE account, you cannot deposit any more money.

Rules on Spending Money in an ABLE Account

The money in an ABLE account has to be used for certain qualifying expenses, like:

• Daily living expenses
• Education
• Housing
• Transportation
• Help getting and keeping work
• Health care
• Assistive technology
• Legal fees
• Financial management fees, and
• Other approved expenses.

Many expenses qualify. For example, your rent, electric bill, and furniture are housing expenses. Gasoline and car repairs are transportation expenses. Health insurance premiums and copayments count as health care. Lunch at a restaurant, toothpaste, and toilet paper are daily living expenses.

Keep receipts whenever you use your ABLE account to pay for a qualifying expense. If you are audited by the IRS, you’ll need to show them how you’ve used your money. You can put all of the receipts into a binder or scan them and save them on your computer.

How Spending Works

An ABLE program may offer a debit card that is linked to the account. If so, you can use the debit card whenever you pay for a qualifying expense. For things like rent, you may need to write checks or withdraw cash from the account instead. You don't need authorization to spend your money: it's your job to make sure your expense qualifies and to keep records of how use your ABLE account.

If you withdraw cash from an ABLE account, spend it on your qualifying expense. Don’t just hold onto the money or put it in a normal bank account – if you don’t spend the money, it could be counted as a resource for benefits programs. For example, if you take $3,500 out of an ABLE account and put it into a regular checking account instead of spending it, you will go over the resource limit for SSI.

As long as the money stays in the ABLE account, it won’t affect your benefits, so leave your money there until you need to spend it.

Learn more about ABLE accounts.

An Individual Development Account (IDA) is a type of account in which the money you save is matched with money supplied by the program’s sponsor or financial institution. The match may be anywhere from 1 – 4 times the amount of the deposit you make. For example, if you’re enrolled in an IDA program with a 2:1 match and you deposit $50 into your account, the program will add an additional $100 towards your savings goal, so that your total savings for that month will be $150!

To open an IDA:

• Your annual income must be within 200% of the Federal Poverty Guidelines ($30,120 per year for individuals)
• You must have some form of earned income from a job or your own business (it doesn’t matter if your work is part-time or full-time)
• You have to take financial literacy classes about things like money, debt reduction, developing a savings plan, credit, and investing
• Depending on the program, you may also need to be a U.S. citizen or permanent resident

You also have to choose an approved goal to save for and use the IDA to save money towards meeting that goal. Most IDA programs allow you to save money for the following goals:

• Buying a first home
• Paying for education or training costs
• Funding a small business

Most IDA programs only let you save a limited amount of money in your account, usually $4,000 to $6,000. This includes the money you deposit, as well as the matching funds. Once you reach the limit, you won’t be allowed to deposit any more money into the account. IDA programs also have a limit on how long you can save, usually 3 years.

Finding and Applying for an IDA

Once you’ve decided to do an IDA, you must take several steps to enroll in an IDA program:

1. Decide how much money you plan to save up and what you are going to do with it. You could use the money for something that will help you with your education, with your small business, or with buying a home.
2. Locate an IDA program in your area. There are good IDA program directories at Prosperity Now and the Assets for Independence Resource Center (AFI).

   • Note: There aren't as many IDA programs as there used to be. Some are still active, but it can take a bit of effort to find one that is accepting applications.

3. Find out as much as you can about the IDA program you are considering.
   • What is the source of the program’s funding? Is it federally funded?
     • If the IDA program is federally funded, money deposited and matched in that account will not be counted by SSI or MO HealthNet. That means it will not impact your benefits.
     • If you enroll in an IDA that is not funded by the federal government (for example, an IDA funded by a nonprofit or private company), money deposited and matched in your IDA may jeopardize your SSI and MO HealthNet benefits.
   • Does the program fund the goal you decided upon in step 1?
     • Federally funded programs only allow you to save for small business developments, higher education expenses, and the purchase of a first home.
     • Some privately funded IDAs may allow you to save for other goals, like buying a new computer or car.
4. Once you have found an IDA program that is suitable for you, attend an orientation meeting to learn more about it.
5. If you decide to enroll, supply the required personal and financial information to verify your eligibility for the program.

Once you have enrolled and been accepted into the IDA program, you will be assigned an IDA caseworker who will help you with your account. You’ll open a savings account with a bank or credit union that is tied to your IDA program. Depending on the program, you may need to deposit a certain amount of money into your account each month.

Integration with Other Benefits Programs

IDAs and Supplemental Security Income (SSI)

Because SSI has income limits and resource limits, working and saving money in an IDA could risk your eligibility. Generally, IDA programs that are federally funded will not impact your benefits. Be sure to talk to a Benefits Specialist about the details.

IDAs and Plans to Achieve Self-Support (PASS)

A Plan to Achieve Self-Support (PASS) is an SSI program that lets you set aside money for a specified work goal, such as:

• Starting a new career
• Going back to school

The money you set aside in a PASS does not count against SSI's income limits and resource limits. This means you can save money towards a career goal in a PASS and continue to use SSI benefits for basics, like food and rent.

An IDA can be a part of your PASS plan; the only requirement is that your goal for each program be the same. As long as the money you save in your IDA is part of a PASS plan, it will not be counted by SSI and won’t jeopardize those benefits.

IDAs and Social Security Disability Insurance (SSDI)

People on Social Security Disability Insurance (SSDI) may enroll in any IDA program for which they are eligible. There are no restrictions.

IDAs and the Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a federal tax program that lowers the amount of income tax owed by low- to moderate-income workers and families. Money you get from an EITC can be put into an IDA and matched, helping you to reach your savings goal faster.

Social Security’s Plan to Achieve Self-Support (PASS) program lets people who get Supplemental Security Income (SSI) benefits earn more money and save up that money in a special type of account. The money that you save up can be used to:

• Help pay for the cost of school or training
• Start a business
• Pay for equipment, support services, and other expenses related to your goal

Usually, if you get SSI benefits and have income from a job or from another benefits program, like Social Security Disability Insurance (SSDI), your SSI benefits amount will go down. Also, if you save up too much money in a savings account or build up your assets in any other way, you could lose your SSI benefits altogether because you have more than the resource limit ($2,000 if you’re single, $3,000 for couples).

The PASS program helps make saving easier and lets you get yourself into a better financial situation. There are 2 basic benefits:

• You can save up resources without losing your SSI benefits.
• If you have income, you can put it into the PASS and it won’t be counted as income by SSI, thus your benefits amount won’t go down.

In this way, the PASS program can help you achieve self-sufficiency. The money you save up has to be for a work goal and can include education, training, equipment, support services, or other expenses related to this goal. If you already go to college or have a job, you can set up a PASS to help pay for your current work, school, or health expenses.

Eligibility and Application

To set up a PASS, you must:

• Be on SSI or become eligible for SSI benefits as a result of an approved PASS application.
• Have a source of income other than SSI (for example, SSDI cash benefits or wages from a job) or have resources over $2,000 that you can use to fund your PASS plan.
• Have a work goal that will help you earn enough money to lower your Social Security disability benefits or get off benefits altogether.
• Be able to write down a plan that shows how saving a certain amount of money will let you reach your work goal. Social Security has staff called a PASS Cadre who can help you write your PASS plan.
• Be under age 65. If you are 65 or older, you may be able to set up a PASS if you were getting SSI cash benefits based on disability or blindness in the month before your 65^th birthday.

Social Security has an application form (PDF) to do a PASS. On the application, you will describe your goals for work and how you plan to achieve them. This description should be detailed enough to convince Social Security that:

• You have a clear plan
• The plan is something you can realistically do
• If you completed the plan, your need for SSI or SSDI benefits would be, and lowered or eliminated.

If you currently do not have a clear work goal or a clear way to achieve it, you may consider working with an organization like Vocational Rehabilitation (VR) or an Employment Network (EN) through the Ticket to Work program.

Application Assistance

Creating your plan and filling out a PASS application can seem intimidating, but you can get help with every step of the process by talking with someone from a PASS Cadre. A PASS Cadre is a professional who knows about the program and is available to help you take advantage of it. The Kansas City Region PASS Cadre (which serves people throughout Missouri) can be reached by phone at 1-866-592-1755, extension 23014.

Using a PASS

After your plan is approved, Social Security will send you detailed instructions about how to use your PASS. The instructions are mostly about keeping PASS funds and expenses separate from your other money and keeping good records. You have to follow the rules carefully.

If a medical situation or some other issue comes up that impacts your ability to continue your PASS, talk to your PASS Cadre about your options. In many cases, you will be allowed to put your PASS on hold for up to 12 months without having to re-apply.

There are various tax credits that can help you save money. Here we will introduce 3 of them:

1. The Child Tax Credit (CTC)
2. The Credit for the Elderly or Disabled
3. The Earned Income Tax Credit (EITC) and Missouri Working Family Credit

To get any of these tax credits, you must file your taxes!

Child Tax Credit (CTC)

The Child Tax Credit (CTC) is available to parents with children under age 17. The CTC gives these parents up to a $2,000 tax credit for each child in the family under 17. Eligible families must be working and earning at least $2,500 a year.

Note that if you're on Supplemental Security Income (SSI) benefits and get money from a CTC, you should spend it within 12 months. After 12 months, Social Security will count that money toward SSI's resource limit.

Credit for the Elderly or Disabled

If you or your spouse is a U.S. citizen who got taxable disability income and was permanently and totally disabled during this tax year, you may be eligible for the Credit for the Elderly or the Disabled.

Earned Income Tax Credit (EITC) and Missouri Working Family Credit

The Earned Income Tax Credit (EITC) is designed to help people with low income by lowering the amount of federal income tax they owe. And the Missouri Working Family Credit lowers the amount of state income tax they owe. Even if you don’t earn enough money to owe federal and state income taxes, you may be able to get these credits. Here we’ll explain the EITC in detail, because many people who qualify for it don’t get it, because they don’t know they could.

Eligibility

To qualify, you must have income from employment, self-employment, or employer-paid disability benefits that is below certain limits and you must file your federal taxes.

The amount you get from your EITC depends on your Adjusted Gross Income (AGI), whether you are married, and the number of children you have. For 2024 (filing taxes by April 2025), the EITC ranges from $2 to $7,830.

The Missouri Working Family Credit is 10% of the Federal EITC, or $0 to $783. For example, if your federal EITC is $4,000, your Working Family Credit is $400.

Earned Income

To qualify for an EITC, you must have earned income. This can include your wages, salaries, tips, net earnings from self-employment, or any other form of taxable pay. You can also elect to include nontaxable combat pay as earned income.

The EITC program considers employer-paid disability payments that you get before retirement as earned income, but benefits payments from a policy you paid the premiums for or that you got after retirement are not considered earned income.

Other things that do not qualify as earned income under the EITC include:

• Interest and dividends
• Social Security and railroad retirement benefits
• Pensions and annuities
• Alimony and child support
• Workers’ compensation benefits
• Unemployment compensation
• Welfare benefits
• Veterans benefits

If you are married and filing jointly, at least one spouse must have earned income to be eligible for an EITC.

Adjusted Gross Income

In addition to the earned income requirement, you must have an adjusted gross income below certain levels to qualify for an EITC.

Your adjusted gross income includes all earned income before deductions for taxes, health care or other expenses, minus certain business, education-related, and other expenses. While filling out your annual tax return (IRS Form 1040), you will be asked a series of questions that will let you figure out what your adjusted gross income is.

Qualifying Children

For a child to be considered a “qualifying child” under an EITC, several requirements must be met:

• Relationship: If you are claiming one or more children, they must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these (for example, your grandchild, niece, or nephew).
• Residence: The child must live at the same residence as you for more than half the year and have a valid Social Security number.
• Age: At the end of the tax year, the child must be under 19. Or, if going to school full-time, the child must be under 24. The only exception is for people who are permanently and totally disabled. If your child is permanently and totally disabled, there is no age requirement.

According to the IRS, a person is considered permanently and totally disabled if:

• Their condition is expected to last continuously for at least 12 months (or 1 year) or is expected to result in death, and
• They cannot perform any Substantial Gainful Activity (SGA) (they are unable to earn more than $1,550 per month ($2,590 if they are blind).

Qualifying children can only be used by one family member to claim an EITC.

How to Get an EITC

If you qualify, you will claim your EITC when you file your federal tax return, IRS Form 1040. If you have a qualifying child, be sure to attach a Schedule EIC.

To calculate the value of your EITC, you can use the Earned Income Credit Worksheet in your 1040 instruction booklet. Or you can ask the IRS to calculate it for you by noting an “EIC” on the Earned Income Credit line on your tax return.

To figure out whether or not you are eligible for an EITC, and to see what the value might be, use the IRS EITC Assistant.

To claim the Missouri Working Family Credit, you must qualify for the federal EITC on your federal tax return, and you must file a state tax return (Form MO-1040) with Form MO-WFTC and a copy of your federal taxes attached.

Tax Preparation Tips for Claiming the EITC

Keep all your W-2 forms and keep a record of who you have worked for during the year. This will make things simpler when it comes time to file your taxes.

Be sure to file your taxes, even if your income is lower than the amount at which you are legally required to file. You might be eligible for an EITC or some other tax credit that you can’t get without filing. Many families with children who qualify for an EITC may also be eligible for a Child Tax Credit (CTC).

EITC Interaction with Other Benefits

Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI)

You must have some form of earned income to qualify for an EITC. Social Security benefits do not count as earned income under the program. You can, however, be on Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits and claim an EITC, as long as you have some form of earned income.

If you're on SSI benefits, you should spend any money you get from an EITC within 12 months. If you save the money longer than that, Social Security will count that money toward SSI's resource limit, unless you save the money in an Individual Development Account (IDA) or Plan to Achieve Self-Support (PASS).

Individual Development Accounts (IDAs)

Money from an EITC can be put into an IDA. This lets you get matching funds from the IDA program sponsor.

Plans to Achieve Self-Support (PASS)

Money from an EITC can be set aside in a PASS. This will let you reach your employment goals more quickly, by saving money without affecting the way your income is counted.

Long-Term Disability Insurance

Employer-paid Long-Term Disability (LTD) Insurance benefits that you got before retirement count as earned income under an EITC and can therefore be used to qualify for the program. Disability insurance benefits which you pay the premiums for or that you get after retirement are not considered earned income and can’t be used to qualify for an EITC.

A trust is a legal arrangement in which a person or organization manages assets for someone else. The person getting payments from the assets is called the “beneficiary” and the person or organization who is managing the assets is the “trustee.” Many kinds of assets can be put into a trust, such as cash, stocks, bonds, and real estate.

Some kinds of trusts, called Special Needs Trusts, can be set up to hold the assets of a disabled person. By setting up a Special Needs Trust, the disabled person can have these assets held for them and get Supplemental Security Income (SSI), MO HealthNet, or HUD housing benefits at the same time.

If you are the beneficiary of one of these types of trusts, your trust can have more assets in it than the resource limits for these programs would normally allow you to have. This means that if you have a trust, you can be in a more secure financial situation without losing your benefits.

It is important that either you or the person setting up the trust for you do so correctly. If your trust is not set up correctly, the assets in your trust might be counted toward the public benefits resource limits and you could lose your public benefits.

Special Needs Trusts

While public benefits, such as SSI, MO HealthNet, and HUD housing benefits, offer basic support for food, shelter, and medical care, a Special Needs Trust can be used to pay for other support and services that can help you. For example, money from the trust could be used to pay for your recreation expenses, telephone bill, education, and vacations. Money from a Special Needs Trust cannot be used for expenses that are already paid for by one of your public benefits.

Although Special Needs Trusts can have huge advantages, they also have strict rules. The funds must be used to benefit only you; no one else can benefit from that trust. Also, the trust is set up to help you, but payments should not be made directly to you. Payments made directly to you count as income and may affect your benefits. When you need to pay a provider for something that is not food or shelter, the trustee will pay the money from the trust directly to the provider. Only the trustee can handle the money from the trust.

First Party Special Needs Trusts

A First Party Special Needs Trust is used if you have accumulated assets, inherited assets, or gotten assets from a court settlement. In these situations, you actually own the money.

It used to be that people with disabilities were not allowed to set up their own First Party Special Needs Trust, even though it was their own money. A parent, grandparent, guardian, or court had to set up the trust, the trustee controlled the funds, and you could not be your own trustee. The laws changed in 2016, and this type of trust can now be set up by you, or by your parent, grandparent, legal guardian, or the court.

To qualify, you must be under 65 years old and must have a disability as defined by Social Security. If you do not meet Social Security’s definition of disability, you cannot have this type of trust. If you are not getting SSDI or SSI benefits, the Family Support Division’s Medical Review Team may make the decision that you are disabled.

The trust has to specify that after you die, any money left in the trust will be used to pay back the state for the amount of money the state spent on MO HealthNet for you after the trust was set up. If money is still left over after the state has been paid, it can be given to whomever you tell the trustee you want it to be given.

Pooled Special Needs Trusts

This type of trust pools assets from different people and puts them into a large investment fund. Although the funds are pooled (used together), you still have your own separate account. Pooled Trusts offer both First Party accounts (funded with only your own money) and Third Party accounts (funded only with money from other people). As with a First Party Special Needs Trust, all beneficiaries of a Pooled Special Needs Trust must have a disability that meets Social Security's standards.

A Pooled Special Needs Trust is set up through a nonprofit organization. The nonprofit organization will administer the Pooled Special Needs Trust, take care of all the tax preparation, make investment decisions, and act as the trustee.

Before the Pooled Special Needs Trust is set up, you or your family members must explain what you want the trust to pay for, and who should be consulted about these matters. Anyone can put money into the Pooled Special Needs Trust for you — parents, grandparents, even you.

Who can set up a Pooled Special Needs Trust?

• You
• Your parent
• Your grandparent
• Your legal guardian
• The court

Any money left in the Pooled Special Needs Trust after you die will be used to pay back the state for the amount of money the state spent on MO HealthNet for you after the trust was set up. If money is still left over after the state has been paid, it can be given to whomever you tell the trustee you want it to be given.

Third Party Trusts

Third party trusts are often similar to Special Needs Trusts and sometimes are called Third Party Special Needs Trusts, but there are differences. Parents usually set up and supply the money for Third Party Special Needs Trusts, often through their wills, and sometimes by purchasing life insurance payable to the trust. These types of trusts are often established for a child with a disability, but they can also be set up for a child (or other person) without a disability. Other family members can also put money into this type of trust, such as grandparents, aunts, and uncles. The only person who cannot place money into this type of trust is you, the person who will be the beneficiary of the trust.

Some parents place their property in a "living" trust and state in that trust that a separate trust will be created for their child upon their death. This type of trust is often effective immediately. Anyone can give money to the trust by either writing a check or writing a will naming the trust as the beneficiary.

The key to a Third Party Special Needs Trust is that the money cannot be used for housing. Housing is considered a basic need under Social Security laws. If you are getting free housing from someone else, including a family member or a trust, then your SSI benefits will be reduced or stopped. This is why you don’t want to use assets from the trust for housing. Free housing or food, including payments for those items from a trust, are not considered income for MO HealthNet or SNAP (formerly Food Stamps) and will not affect your eligibility for those programs. Your SNAP (formerly Food Stamps) benefits could be reduced as you would have lower housing costs. Payments from the trust directly to you would be considered income for MO HealthNet and SNAP (formerly Food Stamps).

When creating the Third Party Special Needs Trust, whoever sets up the trust must decide who will get any assets that are left in the trust after you die. Unlike First Party Special Needs Trusts and Pooled Special Needs Trusts, the Third Party Special Needs Trust does not need to repay the government for any MO HealthNet expenses.