Types Of Special Needs Trusts
When a person is receiving government benefits like Medicaid, these benefits do not cover all of the costs of daily life. Potentially, you may be taking care of these extra expenses for your loved one while you are still living, but if you pass on before your loved one, you will no longer have the ability to administer care in this way. By establishing a special needs trust, the funds in the trust can be used to help with those expenses while also not hurting your loved one’s eligibility for the government funds that they need.
When beginning the process of setting up a special needs trust, you may be able to choose either a self-settled or a pooled special needs trust. Self-settled special needs trusts can be used in many cases. For this option, a person may have the ability to manage the funds in the trust, or in other words, be given the power of trustee, and if there is anything left after Medicaid is reimbursed, it can pass on to heirs.
A pooled special needs trust, by contrast, must have a non-profit organization (in Connecticut, it is PLAN of Connecticut) instead of a person appointed as the trustee. In this case, after Medicaid is reimbursed, the remaining funds cannot be distributed to heirs. In certain circumstances, such as when the special needs beneficiary is over the age of 65 yrs, it is the only option available.
Speak to a Connecticut Estate Planning Attorney Today
If you have a loved one that suffers from a mental health condition, a physical injury, or a debilitating illness, you want to make sure they are taken care of when you are no longer around and able to. Determining which type of special needs trust is right for you is not something that you have to do alone. Call the experienced Cantor estate planning attorney at The Law Office of Brian S. Karpe, LLC today to schedule a free consultation at 860-217-1458.