There is a solution on settlement of cases for ($20,000 or less) for clients with
disabilities, so that they don’t lose Medicaid or SSI benefits.
In 2019, Mississippi enacted the Mississippi ABLE Act that implements the federal ABLE Act. It allows for an account for a person with a disability that began prior to age 26 (to be raised to age 46 in 2026) that will not be counted by SSI or Medicaid as part of the beneficiary’s assets. SSI limits countable assets to $2,000 (including funds in a conservatorship) and some Medicaid programs limit countable assets to $4,000.
The maximum amount that can be deposited to an ABLE account in a calendar year is the same as the fed gift tax annual per done exclusion amount - $18,000 in 2024. So, a person on SSI who receives a $20,000 settlement could put $2,000 or less in a checking account and $18,000 in an ABLE account and keep SSI and Medicaid.
