This video is part of the Golden State Pooled Trust "How To" series which is intended to assist beneficiaries and their advocates to make distributions.  


How To Video on Using a Credit Card

This video reviews policies and procedures of the Golden State Pooled Trust pertaining to utilization of a credit card to pay for the needs of a Golden State Pooled Trust beneficiary. Included is an example about how to review the credit card bill and fill out the distribution request.

Policy

One of the dilemmas that beneficiaries and their advocates face is how to pay for the beneficiaries needs without giving them cash. Any cash given directly to a SSI recipient will reduce the benefit dollar for dollar. Services and exempt resources given directly to a benefits recipient do not cause a reduction in benefits.

Utilization of a credit card can be useful as a tool to pay for items the beneficiary needs, but in some circumstances the utilization of a credit card can be harmful.

Keep in mind that the Golden State Pooled Trust must by law exercise discretion over distributions, therefore if a purchase is made prior to authorization the Trustee may elect not to pay for a specific purchase.  Having a distribution plan on file will allow preauthorization of purchases. When in doubt, contact the Golden State Pooled Trust before you make the purchase.

Example – Betty Needs a Dress

Betty is a beneficiary of the Golden State Pooled Trust and receives SSI, IHSS and Medi-Cal. She would like to purchase a dress at her favorite clothing store. If Betty purchases the dress and submits a reimbursement request for cash, the reimbursement will cause a dollar for dollar reduction in her benefits even though the purchase was for an exempt resource.

This would also include her using a debit card and having her trust account reimburse her debit card account. She could

 

have someone else purchase the dress and her account could reimburse the purchaser

 

purchase the dress online and have her trust account pay the invoice

 

purchase the dress with a credit card and have her account pay the credit card invoice.

 
What Does SSA Say? - Disbursements for Credit Card Bills POMS SI 01120.201 d.

The Program Operations Manual (POMS) at POMS SI 01120.201 d gives guidance about how the Social Security Administration treats the payment of a beneficiary’s credit card bill by a Special Needs Trust. The POMS states in part;

 

If a trust pays a credit card bill for the trust beneficiary, whether the individual receives income depends on what was on the bill. If the bill includes non-food, non-shelter items, the individual usually does not receive income as the result of the payment unless the item received would not be a totally or partially excluded non-liquid resource the following month.

 

If the trust pays for food or shelter items on the bill, the individual will generally be charged with in-kind support and maintenance up to the PMV. For example, if the credit card bill includes restaurant charges, payment of those charges results in ISM.

 

If the bill also includes purchase of clothing, payment for the clothing is not income.

 

Remember – the Golden State Pooled Trust may only make disbursements that are for the sole benefit of the beneficiary in accordance with Federal and State law.

 Paying For Food or Shelter with a Credit Card

The Golden State Pooled Trust will not’ pay for food or shelter for SSI recipients unless the beneficiary or beneficiary advocate acknowledges that they have a duty to inform SSA that they have received food and shelter and that their SSI will likely be reduced. The reduction for 2009 is $244.66 and will increase slightly in later years.

                    Backup Documentation

In order for the Distribution Reviewer to authorize payment of credit card bill, the Reviewer must be able to identify what the purchases were for.

 

Methods of identifying purchase

 

Receipts (preferred).

 

Written declaration.

 

Reviewer will call the beneficiary advocate.