Do you know what a Special Needs Trust can do for you?
This month, we’ll look at the many advantages a Special Needs Trust can offer you and your family.
What is a Special Needs Trust?
A Special Needs Trust, also known as a Supplemental Needs Trust, allows you to take care of your loved ones financially while ensuring he or she continues to receive government benefits.
This type of trust contains set instructions that allow the Trustee to meet the needs of the beneficiary, but prohibits the Trustee from providing for those needs if they are already covered by Medicaid or other programs.
A Special Needs Trust also prohibits the Trustee from using the assets to reimburse any government program after the beneficiary’s death. Typically, these types of trusts are used by clients with special needs children or grandchildren.
But have you considered that anyone could become a special needs person during their lifetime?
In the event of an unforeseen accident, it is crucial that your family’s assets are protected.
If you want to leave your assets to a family member with a disability, it is important that you plan carefully. Otherwise, you could potentially jeopardize your loved one’s ability to receive Supplemental Security Income (SSI) and Medicaid benefits. By setting up a Special Needs Trust, you can avoid some of these problems.
With the help of an estate planning attorney, you can plan a living trust that will ensure your assets are distributed equally to your loved ones. This trust can also state that if your child passes away, their portion of the trust will be passed down to that child’s children.
A Special Needs Trust can contain special needs instructions in the event of a beneficiary’s disability, but is not just limited to food, clothing, or shelter. It can provide for anything that Medicaid or other government programs are not providing.
For example, if the beneficiary enjoys reading or watching films, the trust could be used to purchase DVDs, online streaming subscriptions, audio books, and more. The trust could even cover beauty care or hair styling services, or even home décor and other personal items the beneficiary would enjoy.
A well-designed Special Needs Trust can significantly improve a disabled beneficiary’s life much more enjoyable, all while protecting their remaining inheritance to pass to the next generation.
A Special Needs Trust is not meant to cover the basic necessities that government aid typically insures. By providing the additional finances and care needed on top of what the government provides, you can help your family maintain a higher quality of life.