5 Types of Individuals Who Could Benefit From a Special Needs Trust
When a loved one has a disability, they may be entitled to certain government benefits such as Supplemental Security Income (SSI) and Medicaid. However, there are eligibility requirements, including a limit on financial resources that could jeopardize one’s ability to secure or keep those benefits. As a result, when estate planning, and one wants to provide for a disabled loved one, the last thing that needed is have their loved one’s inheritance put those benefits at risk.
SSI and Medicaid are incredibly helpful for disabled individuals that take provide for basic expenses like food and shelter. An inheritance can add to the quality of life that these individuals experience. However, it is essential to ensure that an inheritance supports a loved one with a disability without losing government benefits. A special needs trust can do just this.
For questions about estate planning, including who benefits from various estate planning tools like special needs trusts, please reach out to the experienced Canton special needs trust lawyer at the Law Office of Brian S. Karpe.
Who Should Special Needs Trusts Be Made For?
Several types of individuals can benefit from the creation of a special needs trust.
Individuals with Permanent, Disabling Conditions
When an individual suffers from a disabling condition with no realistic chance of improvement and will have to live with serious limitations in life, these individuals likely will rely on SSI and Medicaid benefits. Examples of physical and mental conditions that usually qualify for government assistance include Down Syndrome, Cerebral Palsy, and debilitating mental illness.
Individuals Who May Not Need Lifelong Government Benefits
An individual who qualifies for SSI and Medicaid and receives those benefits currently may not have a need to rely on them in the future. A special needs trust can protect these individuals’ inheritance and government benefits while accounting for the potential that, in the future, the trust may no longer be necessary. A special needs trust can have specific instructions for the trustee, or the person named that manages the trust, to end it if that is in the best interests of the beneficiary.
Individuals Who May Need Government Benefits in the Future
Potentially an individual has a condition that is expected to only get progressively worse. While they may not be disabled to the degree that qualifies for government benefits now, their condition in the future may make it necessary to have access to such benefits. A special needs trust can preserve the eligibility for those benefits in the future, and if they do not end up needing benefits as expected, it can be terminated.
Protecting Disabled Individuals From Predators
Disabled people can sometimes be targeted and vulnerable to predators trying to trick them out of their money. A special needs trust managed by another, more competent party can safeguard against this.
Speak to a Connecticut Special Needs Trust Lawyer Today
If you believe that a special needs trust would benefit your loved one or if you have questions about trusts, please call the Connecticut special needs trust attorney at the Law Office of Brian S. Karpe to schedule a free consultation at 860-217-1458.