Can a person receiving SSDI also accept monetary gifts from a trust? Is there any limit to either the value or frequency.

The answer probably is yes. If the person is on SSDI they qualify because they have sufficient work history (paying taxes) and have a qualifying disability. If the person has or also has SSI that is based on NEED and having only limited resources. SSI would be effected by receiving gifts that would become their assets. If the trust you are speaking about is a special needs trust of some sort the trustee would be obligated to only distribute amounts to the extent that they would not disqualify the person from SSI. Long and short is that SSDI should not be effected by a trust distribution. See below which is a quote about SSDI directly from the social security website: "We base your SSDI monthly payment amount on the worker’s lifetime average earnings covered by Social Security. We may reduce the amount if you receive Workers’ Compensation payments (including Black Lung payments) and/or public disability benefits, for example, certain state and civil service disability benefits. Other income or resources do not affect the payment amount. "

SSDI, unlike SSI, is not a "means-tested" benefit. A "means-tested" benefit means that the government has set a maximum limit on the amount of countable assets one has. Typically, SSI (and Medicaid) has a maximum countable asset limit of $1,500 or $2,000, depending upon the state you live in. If this person receives money directly, e.g., from a trust, an inheritance, a gift, that money, if it causes the person to exceed the allowance, will lose his benefits; until he spends down his assets to the maximum countable asset limit. Since SSDI is not "means tested" the person can receive gift money, inheritance money, or money from a trust in any amount without a limit on frequency without risking losing the SSDI benefit. By the way, someone who qualified for SSDI will qualify for Medicare after 24 months.

This is technically not a tax question and you will receive more responses if you repost this question in the elder law area. That being said, SSDI is not a means tested benefit and receiving money from a trust will not affect the benefit.

I practice in Social Security law. If the benefits are SSDI, and not SSI, then counsel are correct. Monetary gifts from a trust or any other source are allowed and there is no limit on value or frequency of the gifts. Best of luck to you.