If you or a loved one have special needs, you understand the financial strains that come with providing the appropriate care for those needs. One way to address these concerns is through a special needs trust. A special needs trust is a tool that allows the trustee to provide financial support for an individual with special needs while also allowing the individual to receive and maintain government benefits.
Speaking to a qualified estate planning attorney about a special needs trust can help you have peace of mind that you or your loved one’s special needs will be cared for. Following are 3 reasons to have a special needs trust:
1. Special Needs Trusts Can Include a Wide Range of Assets
The trust can hold assets such as
and can be listed as an owner/beneficiary of life insurance policies. There are no minimums or maximums for the amounts of assets for these types of trusts.
2. The Beneficiary Can Continue to Receive Public Benefits
A special needs trust recipient is still able to receive and collect public benefits while being the beneficiary of the trust as long as the trust meets certain requirements.
The assets placed within a properly drafted special needs trust will not affect the beneficiary’s qualification for federal and state programs. Because a special needs trust is intended to supplement any benefits received through such programs, it often allows the beneficiary to maintain the best possible quality of life and care.
3. Avoid Medicaid Payback Expenses
The Medicaid payback provision is not required in a properly drafted third-party special needs trust. Therefore, upon the beneficiary’s passing, the estate is not required to give any remaining resources to the state.
Knowing you or your loved one can receive and maintain certain benefits while also benefitting from the assets within a special needs trust will offer peace of mind to you and your family. Make an appointment with the attorneys at Plyler, Long & Corigliano, LLP to establish a special needs trust or learn more about estate planning.