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Looking into the advantages of a special needs trust

On Behalf of | Oct 16, 2022 | Estate Planning

If you have concerns about a disabled loved one’s future, it is vital for you to do everything in your power to plan ahead. In fact, you could have the ability to support them via estate planning, and you should consider all of your options carefully. Special needs trusts can provide a number of advantages for those with disabilities, and they can also give entire families reassurance.

It is pivotal to take a close look at how special needs trusts work and determine whether creating one is the right move.

Special needs trusts and government benefits

It is important to understand that special needs trusts can help protect a disabled beneficiary’s ability to receive government benefits that they depend on. According to the Social Security Administration, a special needs trust does not affect a disabled person’s ability to receive SSI benefits, while another type of trust could count as a resource that prevents one from receiving these benefits.

In addition, if a disabled beneficiary receives Medicaid benefits, a special needs trust could allow them to remain eligible for this assistance.

Creating a special needs trust

If you decide to establish a special needs trust, it is essential to go over your options and the ins and outs of the process. Whether you want to set up a third-party special needs trust for your loved one or a first-party special needs trust using your own funds, you should review various provisions, requirements and understand what happens to assets upon the beneficiary’s death.

Setting up a special needs trust could help assist your disabled loved one down the road and provide you and your family with peace of mind.