If you have a loved one with special needs, you could worry about their future. For example, you might have concerns about their financial well-being down the road, especially if you are currently supporting them and you worry about their future. Fortunately, special needs trusts help many disabled people and provide entire families with peace of mind.
If you are thinking about creating a special needs trust, you should go over the benefits of this strategy and review the process of establishing a special needs trust carefully.
The perks of special needs trusts
According to the Office of Disability Rights, special needs trusts are sometimes ideal for a beneficiary who has a disability and needs that are not covered by government assistance programs. For example, those with disabilities who qualify for Medicaid and Supplemental Security Income sometimes have additional needs that these programs do not cover, which is why special needs trusts are often advantageous.
Special needs trusts and public assistance eligibility
Special needs trusts help many disabled individuals because they do not reduce eligibility for crucial public assistance programs. If you want to pass down assets to support your loved one with special needs, you should examine this option, especially since other strategies could result in them losing eligibility for government programs that they count on.
You need to review all of your options when it comes to estate planning, especially if you have a beneficiary who has a serious disability. Make sure you work through the estate planning process methodically and think about potential long-term issues that could arise.