Social Security Disabled Adult Child benefits vs SSI - can we use ABLE account to bypass payee?

Yes, if she qualifies for DAC benefits on your record (which sounds likely since her disability started before age 22), she would receive approximately 50% of your Primary Insurance Amount. Since that's more than her current SSI, she would lose SSI eligibility because DAC benefits count as unearned income.This is actually a good thing in most cases! DAC benefits aren't affected by living arrangements like SSI, and she'll eventually qualify for Medicare after 24 months on DAC benefits. Also, when you pass away someday (hopefully many years from now), she could get 75% of your benefit amount as a survivor benefit.

Thank you! I hadn't thought about the Medicare aspect - that's a huge benefit. Do you know if the 24-month Medicare waiting period starts when she's approved, or is there any way to count the time she's been on SSI?

My son went through this exact situation last year!!! It took about 3 months from application to first payment for the DAC benefits. And YES he totally lost his SSI but it was worth it because he gets more money now. The payee situation drove us CRAZY though, they wouldnt let him have access to barely anything even though he can handle simple budgeting just fine!!

3 months isn't too bad! Did they give you any retroactive payments, or just start from approval date? The payee situation is so frustrating - did you find any way to work around it?

arent u worried about her losing medicaid? thats what happened with my nephew when he switched from ssi to dac, he got more money but lost medicaid and only got medicare which doesnt cover his day program

This is an important point! When someone transitions from SSI to DAC benefits, they can lose Medicaid eligibility. However, most states have what's called the \

About the ABLE account - yes you CAN use an ABLE account with DAC benefits but NO you cannot bypass the representative payee requirement that way. If SSA has determined she needs a payee, the check still has to go to the payee first. The payee could then deposit funds into the ABLE account. I helped my brother set this up and it works great for him.

That's actually not 100% correct. While typically the payee would need to receive the funds first, there's a specific process through which someone can petition to have their payee requirement reevaluated if their condition has improved or stabilized. OP's daughter could potentially provide evidence (like a doctor's statement) that she's capable of managing her finances with support. It's Form SSA-787 that needs to be completed by a qualified medical professional. The ABLE account itself doesn't bypass the payee, but it can be part of demonstrating financial capability.

I help clients navigate this transition frequently. Here's what you need to know:1. Yes, DAC benefits will be more than her SSI, and SSI will terminate2. The DAC application can be done at your local office or by phone3. Processing time varies by office but expect 2-4 months4. Regarding the payee issue - if she currently has a payee for SSI, they'll likely require one for DAC benefits initiallyHowever, you can request a capability determination review if you believe she can manage her own benefits. This requires medical evidence showing she's capable of managing funds.I'd recommend using Claimyr (claimyr.com) to get through to SSA quickly to start this process - much better than waiting on hold for hours. They have a good video showing how it works: https://youtu.be/Z-BRbJw3puUThe ABLE account is a good idea regardless, as it allows her to save money above the $2,000 resource limit if she ever needs to go back on SSI.

This is incredibly helpful - thank you! I'll definitely look into the capability determination review. Has anyone here successfully had a payee requirement removed for their adult child? And thanks for the Claimyr recommendation, I'll check that out. Spending 3+ hours on hold with SSA is exactly what I'm trying to avoid!

my daughter got DAC but they made ME her payee which is way better than some agency trust me!!!!! ask if you can be the payee

Definitely this!! My cousin's payee was her mom and it worked out SO much better than dealing with an organization. They're so strict with the rules and make you jump through a million hoops for every little purchase.

It took exactly 82 days from application to first payment for my son's DAC claim. They did pay retroactive benefits back to the application date, but not before. And yes, he did lose Medicaid initially but we were able to get him back on through our state's working disabled program since he works 10 hours a week at a grocery store. The whole process was STRESSFUL but worth it financially in the long run!

did u have to go to the ssa office in person to apply? i heard they make u do that for dac benefits

Regarding the ABLE account: it's an excellent financial tool regardless of which benefits your daughter receives. With an ABLE account, she can save above the $2,000 SSI resource limit (up to $100,000 without affecting benefits). This is important even with DAC benefits because if those benefits are ever below the SSI threshold in the future, she could requalify for SSI without having to spend down resources first.Importantly, ABLE accounts can be used for a broad range of qualified disability expenses including housing, transportation, education, healthcare, and basic living expenses. The beneficiary (your daughter) can be the account owner and have direct access to the funds through a debit card, which provides financial independence.However, as others have mentioned, the existence of an ABLE account doesn't automatically remove the need for a representative payee if SSA has determined one is necessary. You would need to follow the separate process of demonstrating capability through medical documentation.

Thank you for the detailed explanation about ABLE accounts! I've been reading about them but wasn't sure about all the qualified expenses. Do you happen to know if we'd need to keep receipts for everything purchased using ABLE account funds? I'm concerned about creating a paperwork nightmare.

One important thing to consider: when you apply for DAC benefits, make sure to inquire about Medicaid continuation under Section 1634(c) of the Social Security Act (sometimes called the

the medicaid thing is SUPER important!!! my daughters doctor had to write a letter saying she needed to keep medicaid because medicare doesnt cover her therapy

Has anyone used Claimyr to call SSA? The hold times are INSANE and I'm wondering if it actually works?

Yes, I've used it several times with clients. It saves hours of frustration. The service connects you with an SSA representative much faster than waiting on hold yourself. Their video demo (https://youtu.be/Z-BRbJw3puU) shows exactly how it works. Especially for complex situations like DAC benefits where you often need to speak directly with a claims specialist, it's incredibly valuable. I've found it particularly useful for time-sensitive issues.

my nephew got denied for dac benefits even tho he has autism because they said he wasnt disabled before 22 even though he WAS! we had to appeal and it took forever but he finally got approved

This is unfortunately common. The key for DAC benefits is having medical evidence showing the disability began before age 22. Sometimes SSA doesn't properly evaluate all the evidence during the initial application. For anyone facing this issue, make sure to submit comprehensive medical records, school IEPs or 504 plans, and any psychological evaluations that document the disability onset before age 22. An appeal with thorough documentation has a much better chance of success.

I'm navigating a similar situation with my 25-year-old son who has intellectual disabilities. He's been on SSI since 18, and I just started receiving SSDI myself. A few things I've learned through this process: 1. The transition from SSI to DAC can be bumpy timing-wise. When we applied, there was about a 6-week gap between his SSI ending and DAC starting, so make sure you have some financial cushion for expenses during that period. 2. Regarding the payee situation - I successfully became my son's payee instead of the agency, and it made a HUGE difference in his quality of life. The agency was so restrictive that he couldn't even buy groceries without prior approval. As his parent payee, I can help him learn money management while still meeting SSA requirements. 3. For ABLE accounts - yes, you do need to keep receipts for qualified expenses, but most ABLE account providers have online portals that make tracking much easier than I expected. My son uses his ABLE debit card for most purchases and I just upload receipts monthly. The whole process is overwhelming but definitely worth pursuing. The extra monthly income plus future Medicare eligibility makes a big difference long-term. Good luck!

I'm in a very similar situation with my 21-year-old daughter who has cerebral palsy and cognitive delays. She's been on SSI since 18, and I just qualified for SSDI last year. We're about to start the DAC application process based on everyone's advice here. A few things I've learned from our disability advocate that might help: 1. Make sure to request expedited processing if your daughter's current benefits are ending soon. SSA can sometimes fast-track DAC applications when there's a financial hardship risk. 2. Regarding the payee situation - you can absolutely request to be appointed as her payee during the DAC application process. You'll need to complete Form SSA-11 (Request to be Selected as Payee) and they'll do a background check, but it's usually much easier than dealing with an organization. 3. For the ABLE account, even if she keeps a payee initially, having the account set up beforehand is smart. The payee can deposit funds into it, and it gives her more financial flexibility for qualified expenses. 4. Document everything about her current ability to manage money - like if she can budget for groceries, pay bills with reminders, use banking apps, etc. This evidence could be helpful if you decide to pursue removing the payee requirement later. The whole system is so confusing but this thread has been incredibly helpful! Wishing you and your daughter the best with this transition.

I'm new to this community but dealing with a very similar situation with my 24-year-old son who has Down syndrome. He's been on SSI since 18, and I recently started receiving SSDI after a workplace injury. Reading through all these responses has been incredibly helpful - especially learning about the potential 6-week gap between benefits and the importance of maintaining Medicaid coverage. One thing I wanted to add that might help others: our local disability rights organization offers free advocacy services for SSA matters, including help with DAC applications and payee issues. They helped us understand that requesting a capability review doesn't have to wait until after DAC approval - you can actually start that process simultaneously with the DAC application if you have the medical documentation ready. Also, regarding ABLE accounts - I just opened one for my son last month through our state's program. The setup was much easier than I expected, and they provided really clear guidance on what counts as qualified expenses. Even though he still has a payee, having the ABLE account ready has already helped with some larger purchases like adaptive technology for his job training program. Thank you all for sharing your experiences so openly. It's reassuring to know we're not navigating this alone, and the practical tips you've shared will definitely help us avoid some pitfalls. Wishing everyone success with their applications and transitions!

I'm dealing with almost the exact same situation! My 22-year-old daughter has autism and has been on SSI since 18. I just started getting SSDI myself and received the same letter about potential DAC benefits. Reading through everyone's experiences here has been so helpful. A few things I've learned from our local SSA office that might add to the discussion: 1. They told me that even though DAC benefits are higher than SSI, there's actually a "trial work period" concept where if for some reason the DAC benefits get suspended later, she could potentially get back on SSI faster since she'd already been established in the system. 2. Our SSA representative mentioned that having an existing relationship with a payee organization (even if it's frustrating) can actually help speed up the DAC application process because they already have all the capability assessments on file. 3. One thing I'm curious about that I haven't seen mentioned - has anyone dealt with how this affects housing assistance? My daughter gets Section 8 housing voucher and I'm worried about how the income change might impact her eligibility. The ABLE account information has been invaluable - I had no idea they could be used for such a wide range of expenses. Definitely going to set one up regardless of how the payee situation works out. Thank you all for being so generous with your experiences and advice. This process feels so much less overwhelming when you know others have successfully navigated it!

I'm so grateful for all the detailed responses here! My son is 20 and has been on SSI for intellectual disabilities, and I just qualified for SSDI myself. This thread has given me the confidence to move forward with the DAC application. One thing I wanted to share that might help others - our local ARC chapter (Association for Retarded Citizens, now just called The Arc) has been incredibly helpful with navigating SSA processes. They have advocates who specialize in benefits and can even attend appointments with you. They helped us understand that when applying for DAC benefits, you can actually request that they expedite the decision if there's a risk of financial hardship during the transition period. Also, regarding payees - I learned that if you become the payee as a family member, SSA requires annual reporting but it's much simpler than what the organizations have to do. You basically just need to show that the money was spent on the beneficiary's needs and keep basic records. The ABLE account advice here is spot on. Even before we transition to DAC, I'm setting one up because it gives so much more financial flexibility. Our state's ABLE program even has an app that makes tracking qualified expenses really easy. Thank you all for sharing your real experiences - it makes such a difference to hear from people who've actually been through this process rather than just reading the confusing official SSA materials!

This thread has been incredibly helpful - thank you everyone for sharing your experiences! I'm in a similar situation with my 26-year-old daughter who has developmental disabilities. She's been on SSI since 18, and I recently started receiving SSDI. A few things I learned from our experience that might help others: 1. When we applied for DAC benefits, our local SSA office let us submit the application online through my SSA account, which was much easier than trying to get an in-person appointment. The whole process took about 3.5 months from submission to first payment. 2. Regarding the payee situation - I was able to become her payee by submitting Form SSA-11 along with the DAC application. The key was providing a letter from her doctor explaining her capabilities and limitations. SSA approved me as payee, which has made managing her finances so much easier than dealing with the previous organization. 3. For anyone worried about the income gap during transition - ask about "presumptive eligibility" for the first month. In some cases, SSA can provide temporary payments while processing the full application. 4. The ABLE account has been a game-changer! We set it up before the DAC benefits started, and now she can save money for things like a car or apartment deposit without affecting her benefits. The online tracking tools really do make record-keeping manageable. 5. Don't forget to notify your state Medicaid office about the benefit change. In our state, she was able to keep Medicaid under the "pickle amendment" since her DAC benefits put her just slightly over the SSI limit. One question for those who've been through this - did anyone have issues with direct deposit setup for DAC benefits? Our bank is requiring additional documentation that seems excessive. Thanks again for all the practical advice in this thread!

I'm just starting to research this process for my 24-year-old son who has autism and has been on SSI since 18. I recently became eligible for SSDI myself and received a similar letter from SSA about potential DAC benefits. Reading through all these experiences has been incredibly enlightening - especially learning about the potential income gap during transition and the importance of maintaining Medicaid coverage. A few questions based on what I've read here: 1. For those who successfully became their adult child's payee instead of an organization, how long did that process take? Did you have to wait until after DAC approval, or could you request the payee change simultaneously? 2. I'm seeing mixed information about whether you can apply for DAC benefits by phone vs. in-person vs. online. Has anyone had success with the online application through their SSA account like Tyrone mentioned? 3. The ABLE account information is fantastic - I had no idea these existed! For those using them, do you find the qualified expense categories restrictive in practice, or is it pretty flexible for day-to-day needs? My son is actually quite capable of managing basic finances with some guidance, but the current payee organization treats him like he can't make any decisions. The representative payee situation has been so frustrating - they require approval for even small purchases and make him feel like he has no control over his own money. Thank you all for sharing such detailed, real-world experiences. This thread has given me hope that we can navigate this transition successfully and potentially give my son more financial independence in the process!

I'm new here but wanted to share my recent experience since it's so similar to what you're describing! My 25-year-old son has autism and we just completed the transition from SSI to DAC benefits last month. A few things that might help: 1. **Timeline**: Our DAC application took exactly 11 weeks from submission to first payment. We did have about a 3-week gap between his SSI ending and DAC starting, so definitely plan for that financially. 2. **Payee situation**: I successfully became his payee instead of the organization by submitting Form SSA-11 with the DAC application. The difference has been night and day! He now has much more independence while I handle the annual reporting to SSA. 3. **ABLE account**: We set this up before the DAC approval and it's been amazing. The qualified expenses are much broader than I expected - pretty much any basic living expense counts. He can use the debit card independently for most purchases. 4. **Application method**: We applied online through my SSA account and it was straightforward. Much easier than trying to get a phone appointment. The whole process was stressful but absolutely worth it. He went from $943/month SSI to $1,285/month DAC, plus he'll get Medicare after 24 months. And the payee change has given him so much more dignity and independence with his money. One tip: start gathering medical records that show her disability onset before age 22. School IEPs, early diagnosis records, etc. Having comprehensive documentation really helps speed up the approval process. Feel free to ask if you have specific questions about any part of the process!