Estate Planning Necessarily Involves Planning to Care for People with Special Needs

Individuals with certain disabilities can receive cash benefits and medical coverage from various government programs. In order to qualify for these benefits, the individual’s income and resources must not exceed certain levels.

If a parent leaves a bequest to a special needs child, the inherited assets may preclude the child from receiving the benefits. The government, however, has established rules to allow assets to be held in trust for the benefit of a special needs child, preserving the government benefits, as long as certain parameters are met.

These trusts, called Special Needs Trusts, preserve government benefit eligibility and leave assets that will meet certain needs of a special needs individual. Special Needs Trusts are typically designed so that the trust assets can be used to supplement, not supplant, government benefits. Trust assets are typically distributed to third parties to pay for items other than the food and shelter of the disabled individual.

If you are interested in learning more about planning options for you and you loved ones, I’m happy to help.