What is Supplemental Security Income (SSI)?

Supplemental Security Income (SSI) is a government program designed to provide financial assistance to individuals who are blind, disabled, or 65 years and older with limited income and resources. Unlike Social Security benefits, which are funded through payroll taxes, SSI is funded through general tax revenue. It is essential for individuals who are unable to pursue gainful employment or have severe financial restrictions, offering them a way to meet basic living expenses.

What are the primary differences between Social Security and SSI?

Social Security is a benefit that people earn by working and paying into the system through payroll taxes, whereas SSI is funded through general tax revenue and is designed for individuals who are disabled or over 65 and have limited income and resources. While Social Security benefits are based on an individual's work history, SSI is provided regardless of work history, as long as the eligibility criteria related to disability or financial need are met.

Who is eligible for Supplemental Security Income (SSI)?

To be eligible for SSI, individuals must meet several key requirements. They must be either blind, disabled, or over the age of 65, with limited income and resources. Additionally, they must be U.S. citizens, live permanently in the U.S., and not reside in government-funded institutions such as hospitals. In cases where individuals live in communal homes with live-in care, this living arrangement would not disqualify them from receiving SSI.

What is the role of an "essential person" in SSI?

An "essential person" is someone who provides crucial care to an SSI recipient and has been doing so continuously since December 1973. This person must have never been eligible for SSI or other state assistance. While the number of essential persons is limited, the role is significant, especially for disabled individuals who require long-term support. It's important to note that the criteria are strict, making it a rare designation.

Can a parent be considered an essential person for SSI?

In New Jersey, and other states, a parent is not automatically considered an essential person even if they are caring for a child receiving SSI benefits. The "essential person" designation refers to individuals who have been continuously providing care since 1973. Instead, parents' income and resources are deemed to affect a child's eligibility for SSI until the child turns 18. After that, parental income is no longer considered in the SSI eligibility process.

What is the deeming process in SSI eligibility for children under 18?

The deeming process refers to the way the Social Security Administration considers a portion of a parent's income and resources as available to their child when determining the child’s eligibility for SSI. This process affects both the amount of SSI benefits and whether the child qualifies. Once the child turns 18, the deeming process ends, and only the child’s income and resources are considered, often making it easier for them to qualify for SSI benefits.

How can someone lose their SSI benefits?

There are several ways an individual can lose their SSI benefits, such as showing medical improvement, surpassing the income or asset limits, or reaching retirement age. SSI recipients cannot exceed $2,000 in assets or earn income above a certain threshold. In addition, when an individual reaches retirement age, they typically transition to Social Security retirement benefits, which would replace their SSI.

How does estate planning impact SSI eligibility for a special needs child?

Estate planning is crucial for families of special needs children who rely on SSI. If a parent leaves a significant asset, such as a home, to their child, it can disrupt the child’s SSI eligibility because SSI recipients must keep their assets below $2,000. Careful planning, such as establishing a special needs trust, can ensure that the child continues to receive SSI benefits while still benefiting from the inheritance.

How can The Matus Law Group help families with special needs children regarding SSI?

At The Matus Law Group, we specialize in helping families of special needs children navigate the complexities of Supplemental Security Income (SSI) and estate planning. Our experienced attorneys can guide you through creating an estate plan that protects your child’s future without jeopardizing their SSI eligibility. We help parents understand the eligibility criteria, navigate application processes, and ensure that their children can continue to receive these vital benefits, even after parents pass away.

How can families contact The Matus Law Group for assistance with estate planning and SSI?

Families can contact The Matus Law Group by calling (732) 785-4453 to schedule a consultation with one of our experienced special needs trust attorneys. We also offer an online contact form on our website for convenience. During the consultation, we will work with you to address your concerns and help secure the financial support and benefits that your special needs child requires for a secure and comfortable future.

Understanding Supplemental Security Income (SSI)

Published on: October 8, 2025

Raising a child with special needs comes with joys and challenges that can be unique to your family. Like every parent, you want your child to live a happy, full, and meaningful life. Each child has their own path, and part of your responsibility is making decisions that give them the best chance to thrive.

For many families, Supplemental Security Income (SSI) is a vital part of that support. It can provide the long-term financial help your child may depend on well into adulthood. But SSI can also be complicated. Even with the best intentions, it’s easy to make a misstep that could put your child’s eligibility at risk. This makes planning ahead important, especially when it comes to creating an estate plan that protects your child’s future.

At The Matus Law Group, we work closely with families to explain how SSI benefits fit into their broader financial planning. Our skilled New Jersey special needs trust attorneys take the time to walk you through eligibility rules, the application process, and the steps you can take to safeguard these benefits for your child. Contact us today at (732) 785-4453 to schedule a consultation and take the first step toward building lasting security for your family.

An Overview

Supplemental Security Income (SSI) is not the same as Social Security benefits, despite being administered by Social Security. People who receive SSI may also receive Social Security benefits. There are primary and fundamental differences between the two.

Social Security is something people pay into throughout their working lives. SSI, however, is funded by taxes and is given to those who are blind or disabled. Disabled people are people whose condition could result in death or are unable to pursue gainful employment.

People who are 65 and older who are living on restricted incomes may be eligible as well. Other requirements include:

Being a U.S. citizen
Having limited incomes and resources (more in the next section)
Lives in the U.S. permanently
Does not live in a government-funded institution

The institution being referred to would be most closely related to a hospital. Many disabled adults live in communal homes with live-in care. That fact, by itself, would not disqualify them from SSI.

SSI Income and Resource Limits in New Jersey

Supplemental Security Income (SSI) provides financial support to disabled children and adults who meet strict income and resource requirements. The Social Security Administration reviews both income and assets when determining eligibility.

For children under 18, some of the parents’ assets are “deemed” to the child. If the child lives in a single-parent household, the first $2,000 of the parent’s assets is exempt. If the child lives with both parents, up to $3,000 of their assets is exempt. Any amount over these limits is applied toward the child’s $2,000 personal resource limit. Exceeding these limits can affect eligibility for SSI benefits.

The SSA considers a wide range of items as resources. These include cash, bank accounts, stocks, bonds, life insurance, land, vehicles, and any property or asset that can be sold for cash and used for food or shelter. Deemed resources from parents also count toward the child’s total.

However, certain assets are exempt. A family’s primary residence and the land it sits on are not counted. Household goods, personal effects, burial plots, and life insurance policies with a face value of $1,500 or less are also excluded. Additionally, grants, scholarships, fellowships, or gifts used for education, certain trusts such as a supplemental needs trust, and property essential to self-support are not considered resources.

Recognizing these limits is important for families in New Jersey seeking SSI benefits. Careful planning and awareness of exemptions can make the difference in maintaining eligibility for necessary support.

New Jersey Special Needs Trust Attorney

Christine Matus

Christine Matus is a respected New Jersey special needs trust attorney with over 20 years of experience guiding families through estate planning. Known for her dedication to both her clients and her community, Christine blends legal knowledge with compassion, offering families peace of mind when planning for the future.

Admitted to the New Jersey Bar & U.S. District Court of New Jersey (1995)
Education: Douglass College, Rutgers University (B.A.), Touro Law (J.D.), St. Anne’s College, Oxford University (International Criminal Law & Ethics)
Founder of The Matus Law Group, focusing on special needs and estate planning
Serves on the Attorney Arbitration Committee and Ocean County Bar Association Board of Trustees
Frequent lecturer on special needs planning, elder law, and nonprofit regulations
Actively involved in community organizations, nonprofits, and pro bono service

Essential Person SSI

An SSI essential person in the United States is an individual who resides with an SSI beneficiary and provides crucial care. This role may involve a child caring for a parent or a live-in caretaker. However, the criteria defining an essential person are exceptionally strict:

The person must have held the role of an essential person as of December 1973.
They are required to fulfill the responsibilities of a caregiver.
Continuous living with the SSI recipient since December 1973 is required.
The essential person must have never been eligible for SSI benefits themselves.
They should not have qualified for State assistance since December 1973.

Meeting all of these requirements designates an individual as an essential person.

According to the Department of Social Security, an essential person plays a crucial role as a caregiver for individuals who are recipients of SSI benefits. A deeper comprehension of what constitutes an essential person necessitates a broader understanding of the Social Security system as a whole. The Social Security Act of 1935 was enacted with the primary purpose of offering financial support to disabled workers, senior citizens, and those who are without employment. This assistance was designed to help them meet their basic living expenses.

Only a limited number of individuals meet the strict criteria necessary to be designated as an SSI essential person and thus qualify for SSI benefits coverage. These requirements have been implemented to gradually phase out the concept of an SSI essential person. However, if you meet the following conditions, either you or your caregiver will still fall under this classification.

When it comes to addressing the challenges of essential person SSI, a New Jersey special needs trust attorney is an invaluable resource. At The Matus Law Group, our attorneys can assist in crafting comprehensive legal solutions tailored to your specific situation, ensuring your loved ones receive the SSI benefits they deserve. Contact us today to schedule a consultation and take the first step toward securing a brighter future for your family.

Is a Parent an Essential Person for SSI?

In New Jersey, as in other states, the concept of an “essential person” does not automatically include a parent, even if the parent is caring for a child who receives SSI benefits. An “essential person” refers to someone living with the SSI recipient whose presence is considered necessary for the recipient’s well-being. For parents of special needs children, the primary focus is on how their income and resources affect the child’s eligibility for SSI, rather than being classified as essential persons.

For children under 18, SSI may consider a portion of parental income and resources as available to the child, a process known as “deeming.” This affects the child’s eligibility and benefit amount but does not classify the parent as essential. Once the child turns 18, parental income is no longer deemed, potentially allowing for easier access to SSI benefits.

For parents caring for children with special needs, it is crucial to understand that while they are not automatically deemed essential persons, their financial situation plays a significant role in the determination of SSI benefits. Parents should focus on the deeming process and ensure compliance with income and resource limits to maximize benefits for their children.

For further guidance on SSI eligibility and parental involvement, visiting the Social Security Administration’s official website can provide additional resources and information. Additionally, you can contact a New Jersey special needs trust attorney for personalized assistance.

How To Lose SSI

There are several ways in which someone can lose their SSI. This includes everything from displaying medical improvement to reaching retirement age. But more specifically, people who receive SSI have a limit to how much income they can earn. Secondly, their assets cannot exceed $2000.

Why are these numbers significant? When you draft an estate plan, these numbers are of vital importance. Parents worked to obtain SSI for their children because they wanted a degree of comfort knowing their children have a means of generating income.

Because their assets and income must fall below a specific threshold, you can inadvertently disrupt that by leaving a special needs adult something of significant value, such as a home.

Category	Limit/Rule	Notes / Examples
Child’s Personal Limit	$2,000	Applies to the child’s own resources.
Parent Resources (1 parent)	First $2,000 exempt	Excess counts toward child’s $2,000 limit.
Parent Resources (2 parents)	First $3,000 exempt	Excess counts toward child’s $2,000 limit.
Countable Resources	Cash, bank accounts, stocks, bonds, life insurance, land, vehicles	Anything that can be sold for food or shelter.
Exempt Resources	Primary residence, household goods, personal effects, burial plots, small life insurance	Life insurance must be ≤ $1,500 to be excluded.
Other Exemptions	Education funds, supplemental needs trusts, property essential to self-support	Includes scholarships, fellowships, grants, or gifts used for education.

Working with an Experienced New Jersey Special Needs Trust Attorney at The Matus Law Group

At The Matus Law Group, our experienced New Jersey special needs trust attorney wants to help you draft an estate plan that not only provides for the special needs person in your life but also protects vital benefits such as SSI. We can work toward achieving this without disrupting those benefits. If you have further questions or would like to meet, contact us today at (732) 785-4453 to schedule a consultation.

We look forward to discovering how we can assist you and your family.

Christine Matus