The goal of special needs trusts is to help anyone with a disability maximize their available resources and enhance their quality of life.
The goal of special needs trust is to help anyone with a disability maximize their available resources and enhance their quality of life. A special needs trust can help someone with a disability preserve their eligibility for government benefits such as Supplementary Special Income (SSI) and Medicaid and inherit assets from their families. Today we’re going to discuss both the ins and outs of special needs trusts and the benefits associated with them.
Who, in particular, Benefits From A Special Needs Trust?
Depending on how debilitating the disability is, many people with special needs often require lifelong help. Health insurance can take care of many of these needs. However, if a person has a severe condition that prevents them from working, establishing health insurance through an employer isn’t possible. For this reason, it’s vital for someone with a severe disability to receive coverage under Medicaid. But the problem isn’t resolved at this point. Medicaid benefits people with low income and limited resources, which can be an issue for parents who leave their child with a disability their assets. Parents leaving their child an inheritance disqualifies them from receiving Medicaid, but this is no longer an issue with a special needs trust.
How Does a Special Needs Trust Operate?
When parents place funds into trusts versus leaving them directly to that child, they avoid their child being ineligible for government benefits. The child doesn’t have any power over the funds; instead, the funds are under the trustee’s management, in which the parents handpick themselves. Even a trust with a million dollars in it will not affect Medicaid eligibility. The government doesn’t consider funds put into trusts as a resource. Like any trust, the same roles apply, which are:
- A settlor or grantor who creates the trust and provides the funds
- The beneficiary who has the disability and receives the funds
- A trustee who manages the money only for the benefit of the beneficiary
Special needs trusts are functional while the parents or caregivers are still alive or can come into play after the guardian passes through guidelines outlined in a will. Typically, parents or caregivers pick a trustee that they can trust, such as a sibling or close friend. But choosing a trustee isn’t always easy, but Millman Law Group can help you make a logical choice.
The Benefits of Special Needs Trusts, in a Nutshell
- They enhance the quality of life for the beneficiary
- They preserve familial wealth.
- They ensure that funds are being used appropriately used.
If you’d like to learn more about special needs trusts, reach out to Millman Law Group today!
MILLMAN LAW GROUP PLLC SERVES THOSE WITH SPECIAL NEEDS AND DISABILITIES
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.