Do You Need a Special Needs Trust?Tuesday, January 15th, 2019, 9:54 am
If you’re considering leaving your heirs property, money, and other assets, you may be looking at using a trust to do so. There are a number of benefits to a trust over simply distributing your items via a will. However, while wills are all fairly similar, there are different types of trusts that do different things. If you have a family member you want to make certain is taken care of, you may need a special needs trust.
What Does a Special Needs Trust Do?
A special needs trust is a trust that provides care for a family member who has a disability of some sort. If you have taken care of a child, spouse, or other family member who has a mental or physical disability and is in need of care and financial support, a special needs trust is the perfect way to ensure that they are protected.
Unlike a will, a special needs trust is tailored to provide the finances and care that your loved one needs. You can set specific guidelines in the trust, including how much money is paid out monthly, what that money can be used for, and who can access those funds.
Why Use a Special Needs Trust?
By putting these assets in a trust instead of simply using a will to convey them to your loved one, you’ll actually help ensure that they are able to make use of a number of different supplemental income programs. For example, Medicaid and supplemental security income programs have strict income and asset limits. If you left heir assets through a will, they would have to report those assets and may not meet the requirements for these programs. By placing the assets in a trust, however, they don’t count against your heir. This means they can qualify for special needs programs and income while also making use of the assets you’ve left them.
The requirements for Medicaid and these other programs are complex, and you want to make certain your loved one is cared for in the correct way. Creating a special needs trust can ensure they are able to take advantage of as many programs as possible to help them lead a full life while also getting the care you want them to have. If you want to learn more about a special needs trust, contact the team at Michael F. Kanzer & Associates today.