Special Needs Planning
What Is A Special Needs Trust?
The failure to properly plan for a family member with special needs can have dire consequences. A special needs trust is designed so that you can have peace of mind that your loved one will be taken care of in the future without the loss of government benefits. These trusts are designed to supplement governmental benefits rather than supplant them. With a special needs trust in place, a mentally disabled loved one can still receive governmental benefits even after he or she inherits assets.
If an appropriate special needs trust is not in place, however, it is common for public benefits to be put on hold while the inherited assets are used to pay for the special care and attention necessary. Only once the estate is depleted do government benefits resume. Yet this leads, often, to gaps in care. It is the goal of a special needs trust to ensure that the estate remains in place while the individual continues to receive the proper benefits.
8 benefits to a special needs trust you may not know
- Ensure government assistance continues
- Protect Supplemental Security Income (SSI)
- Keep Medicaid as a health plan
- Maintain the utilization of vocational rehabilitation programs
- Preserve subsidized housing qualifications and monthly adjusted rent amounts
- Defend certain inheritance funds if they come into question
- Keep any proceeds from a settlement that may have occurred on behalf of the disabled person
- Protect resources if the disabled person was sued
Why is a Special Needs Trust Important?
A special needs trust is an essential estate planning document for some families. It can accurately help protect a disabled individual from losing government benefits if they suddenly acquire additional future income.
To ensure benefits aren’t someday taken away or grow to be invalid, like when an inheritance occurs, the wording and planning of a trust like this need to be carefully thought out.
When you use the correct language and take the proper legal steps with a special needs trust, some benefits that will stay in place, despite what the future may hold. Depending on the beneficiary’s lifestyle, creating a solid trust that plans for possible income changes is key.
Why Choose the Law Offices of Craig Donoff, P.A?
The Law Offices of Craig Donoff, P.A, has more than four decades of experience.
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