Will adding my SSDI/DAC son as joint bank account holder affect his benefits?

my sister gets DAC benefits too and we've been through this. dont do it!! joint accounts count as a resource for the disabled person. if the account has more than $2000 it will affect benefits but mostly SSI not SSDI. wait is DAC different from regular SSDI?? now im confused lol

This is confusing! I thought SSDI didn't have asset limits? That's what they told me when my daughter started getting benefits. But maybe DAC is different???

There might be better options than a joint account. When my mother was planning for my disabled brother, she set up a special needs trust instead of adding him to accounts. That way he could still qualify for benefits if he needed them, but would have access to funds for supplemental needs. You might also look into an ABLE account which allows disabled individuals to save more than $2,000 without affecting benefits (up to $100,000 for SSI and unlimited for SSDI).

A few important points to clarify: 1. DAC (Disabled Adult Child) benefits are a type of SSDI benefit paid to adult children who became disabled before age 22 and who have a parent receiving Social Security benefits. 2. SSDI (including DAC) has NO resource limits, so joint bank accounts don't affect eligibility regardless of the amount. 3. However, if your son also receives SSI now or might need it in the future, joint accounts would count as a resource and could disqualify him if the total exceeds $2,000. 4. For estate planning purposes, consider these alternatives: - Payable-on-death (POD) designation on your account naming your son as beneficiary - Special Needs Trust (more complex but very useful) - ABLE account (can hold up to $100,000 without affecting SSI eligibility) The best approach depends on whether he receives SSI in addition to DAC, the total assets involved, and your broader estate planning goals.

I went through this exact situation with my brother who's on DAC benefits. The Social Security office was IMPOSSIBLE to reach for clear answers. After being disconnected 8 times and spending hours on hold, I used Claimyr (claimyr.com) to get through to an actual agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The SSA agent confirmed that DAC benefits (which is a form of SSDI) don't have asset limits, so a joint account won't affect those benefits. But she warned that if your son also gets SSI or might need it in the future, the joint account could be a problem. For me, a payable-on-death designation was the simplest solution.

Everyone here keeps giving contradictory information!! I've spent YEARS dealing with the SSA system for my disabled daughter and here's what you need to know: 1. DAC (Disabled Adult Child) is a type of SSDI benefit 2. SSDI has NO ASSET LIMITS!!! The SSA doesn't care if you have $5 or $5 million in a bank account 3. SSI DOES have a $2,000 resource limit The problem is that your son might receive both SSDI/DAC AND SSI (many people do), or might need SSI in the future if his DAC benefit is low. DO NOT set up a joint account if there's any chance he receives SSI now or in the future! Instead, look at a POD (payable on death) designation or a properly structured special needs trust. The SSA system is a NIGHTMARE to deal with if you accidentally trigger a benefit issue!!!

Guys I'm still confused... I thought DAC was different from SSDI?? My sister gets a check that says DAC on it not SSDI. Why is this so complicated!!!!

Thank you everyone for the helpful information! I checked with my son and he only receives DAC benefits, not SSI. Based on all your advice, I think I'll look into setting up a POD (payable on death) designation instead of a joint account, just to be safe. I'm also going to learn more about ABLE accounts since that sounds like it could be really helpful too. It's such a relief to know that SSDI/DAC doesn't have asset limits, but I still want to make sure we set things up in the best way possible for his long-term security. Really appreciate all of you taking the time to share your knowledge!

Just wanted to add another perspective as someone who's been through the estate planning process with a disabled family member. You might also want to consider talking to your bank about setting up a "convenience account" - it's different from a joint account because the person you designate can access funds to help manage your affairs, but they don't have ownership rights to the money. This could give your son access in an emergency without the potential complications of joint ownership. Also, when you're researching ABLE accounts, check if your state has one or if you need to use another state's program. Some states have better investment options or lower fees than others, and you're usually allowed to use any state's ABLE program regardless of where you live. The POD designation is definitely a solid choice though - it keeps things simple and avoids any potential benefit complications!

Another option worth considering is a revocable living trust with your son as the successor trustee (with a backup trustee if needed due to his intellectual disability). This keeps the assets out of probate like you want, but doesn't create the joint ownership issues that could complicate benefits. I went through something similar with my disabled nephew. We ended up doing a combination approach - POD designations for smaller accounts that he could handle, and a special needs trust for larger assets that required more oversight. The key was working with an attorney who specializes in disability planning to make sure everything was set up correctly. One thing to double-check: even though DAC doesn't have asset limits, if your son ever needed to apply for Medicaid waiver services or other state benefits in the future, those programs often DO have asset limits. So keeping things structured properly now could save headaches later.