If your loved one has a disability and you worry about their future, look into your estate planning options and the different ways you can help protect their financial well-being. For some families, special needs trusts offer peace of mind and a practical solution to the financial concerns associated with a family member struggling with a serious disability.
Before setting up a special needs trust, review the ins and outs of this strategy.
The perks of special needs trusts
The California Department of Health Care Services outlines some of the perks that come with special needs trusts. Unlike other estate plans, which sometimes interfere with a disabled individual’s ability to retain his or her eligibility for critical government programs, special needs trusts do not interfere with a disabled person’s eligibility for government programs such as medical assistance. Many people with special needs also count on Supplemental Security Income (SSI) and some people lose their eligibility for this crucial support due to assets received through other trusts.
Other advantages that come with special needs trusts
In addition to allowing those with special needs to remain eligible for public assistance they need, these trusts also give families mental relief. By passing down assets via a special needs trust, you do not have to worry about inheritance jeopardizing your loved one’s future. Sometimes, those with special needs have a high level of vulnerability and others try to take advantage of them, and these trusts help safeguard their assets. Whether your loved one has Down syndrome, paralysis, a chronic mental illness or any other permanent disability, a special needs trust can help accommodate their needs down the road.