Qualified Disability Trust

[Patrick Michael]

Client has a 10 year old son who is legally blind and has other developmental disabilities caused by a rare genetic disorder.  His grandmother's will established a "Special Needs Trust" last year when she passed away and there was substantial income this year .  Parents started the application process for SSI several years ago but gave up, because of the household income, the amount he would receive was not worth the time and hoops they would have to jump through.  My research shows that a qualified disability trust must be established for the sole benefit of a person under age 65 (which it does) who meets the Social Security Administration's definition of "disabled" (no question he meets the definition) and that the beneficiary of the trust is almost always going to be receiving either Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). 

I cannot find anything that says he must be receiving SSI or what situations he would be eligible for Qualified Disability Trust designation while not receiving SSI.

I'm leaning towards saying this is a Qualified Disability Trust and taking the extra exemption amount.

Anybody ever deal with this or any thoughts?

Thanks.