Special Needs Planning with a Special Needs Trust
A Special Needs Trust (sometimes referred to as a ‘supplemental needs trust’) is a trust fund for a disabled beneficiary. It is important to create a Special Needs Trust to insure that the disabled beneficiary has access to a broader pool of assets for their care, without disqualifying them from government benefits.
The most common reasons people create a Special Needs Trust:
- To protect assets that belong to a beneficiary with a disability who needs benefits (such as Medicaid).
- To hold assets such as a personal injury settlement or inheritance awarded to a disabled person already receiving benefits (such as social security disability or Supplemental Security Insurance)
- To receive assets from an elderly disabled person who is trying to qualify for Medicaid themselves.
The main purpose of a Special Needs Trust is to ensure there is no lapse or reduction in benefits, and to avoid a penalty period being imposed for benefits because of an improper transer of funds.
If you or a loved one are receiving government benefits and will be acquiring an inheritance or personal injury settlement, contact our office to help you set up your Special Needs Trust to ensure your qualification for benefits