Senator Kay Hagan has introduced the
Disabled Military Child Protection Act of 2013 (S. 1076), a bill that would allow the
payment of monthly annuities under the Survivor Benefit Plan for dependents of Military personnel to go into a special needs trust. A similar bill, H.R. 2249 has been introduced in the House of Representatives by Representative Jim Moran of Virginia.
According to the National Academy of Elder Law Attorneys (NAELA), this bill would allow more than 1,000 military dependents with significant disabilities to receive survivor benefits through a special needs trust, without fear of losing access to their Medicaid, Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits.
According to NAELA, currently, if a military retiree chooses to leave his or her Survivor Benefit Plan to their dependent with a disability, the veteran must leave the benefit directly to the dependent.This will likely make him or her ineligible for the much needed long-term support benefits (Medicaid) to which they are entitled.The Disabled Military Child Protection Act of 2013 will allow the veteran to transfer his or her benefits to a special needs trust, thus allowing the dependent to remain eligible for public benefit programs.
We will keep you posted on the progress of this bill and will call for action when it is timely.