Whether you struggle with a disability and worry about your financial future or you want to make sure that your disabled loved one receives the support they need down the road, a special needs trust could provide peace of mind. It is important to review the ins and outs of creating a trust and the unique advantages associated with special needs trusts.
Before moving forward with any type of estate plan, you need to consider all of your options and find clear answers to any questions that you have.
Special needs trusts and public assistance
The Social Security Administration goes over how assets in a trust can affect eligibility for certain types of public assistance. In some instances, those receiving SSI benefits as well as Medicaid lose their eligibility for these programs due to assets in a trust that count as their resources. However, this does not apply to special needs trusts.
If you depend on these benefits or want to ensure that your disabled loved one retains their eligibility, a special needs trust could suit your needs best.
Creating an effective special needs trust
When setting up a special needs trust, it is essential to take an individualized approach and review the beneficiary’s unique circumstances. Carefully go over any potential restrictions that could affect the beneficiary, as well as requirements.
In addition to creating an estate plan, taking care of a loved one with special needs is often demanding. However, a well-drafted special needs trust can help support your loved one later on, and provide your entire family with a sense of relief.