If someone in your family lives with special needs, or if you have a disability and want to understand your estate planning options, it is crucial to look into special needs trusts. These trusts offer a variety of perks, especially when it comes to SSI and Medicaid benefits, but it is essential to review the requirements and approach the process of setting up a trust carefully.
For starters, it is important to understand how special needs trusts can preserve your disabled loved one’s ability to remain eligible for government assistance.
Special needs trusts and eligibility for SSI and Medicaid
The Social Security Administration provides information on special needs trusts and SSI benefits. The SSA writes that assets in special needs trusts do not impact a disabled beneficiary’s ability to remain eligible for SSI benefits. On the other hand, assets in other types of estate plans could count as resources that interfere with your loved one’s ability to stay eligible for SSI.
Likewise, special needs trusts can help your loved one with disabilities remain eligible for Medicaid benefits.
Other reasons to create a special needs trust
In addition to safeguarding eligibility for Medicaid and SSI, setting up a special needs trust could provide your disabled loved one and your whole family with peace of mind. Furthermore, these trusts can offer financial security that makes it easier to live with a disability.
If you want to learn more about special needs trusts, make sure you go over your options, the ins and outs of these estate plans and your loved one’s unique circumstances closely.