If your family includes someone with a disability who qualifies for government benefits such as Medicaid or SSI, you may want to consider a special needs trust as a part of your estate plan.
The government typically only provides for essential needs, so your loved one receiving these benefits is likely to be at or even below the poverty level. Some of our clients supplement what the government provides through gifts, payments of rent, etc., and they want to continue this help after their deaths. The problem is that the very inheritance that is designed to do this may disqualify the loved one from eligibility for these essential benefits. It may make the situation worse instead of improving it.
A special needs trust enables funds to be contributed to the disabled individual without impacting his or her ability to receive Medicaid, SSI, and similar benefits. They can also work in conjunction with other programs to significantly improve a disabled beneficiary’s quality of life. We can help guide you through what is available.
Learn more about How to Set Up a Special Needs Trust in this October 25, 2017 article from CNBC.