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.