Special Needs Planning insures that a disadvantaged person who relies on you for support, continues to receive that support in the event of your death.
Years ago, a person with disabilities or a debilitating illness had limited options if the person who provided for them passed away or grew too old to care for them. But today, legal instruments such as a Special Needs Trust or Supplemental Needs Trust allow you to fund your loved one’s care without impacting their SSI or Medicaid benefits. Government benefits are usually a substantial portion of the funding required to care for a person with special needs and must be considered as essential, regardless of the size of your estate.
If you transfer assets to a person with special needs via your Will, the inheritance may impact their government benefits. But in a Special Needs Trust, the Trustee whom you designate has 100% control over the management of the funds. Consequently, the trust funds are not controlled by the beneficiary and so are not included in their calculation of government benefits. Even if your special needs beneficiary will not receive government funds, having a Trust in place for their care is the surest way to guarantee that they’ll be provided for in the event that laws and circumstance change.
Special Needs Trusts also are intended to provide a wide range of services aside from medical care – those associated with quality of life. For instance, the Trust may be used to fund domestic and personal assistants to help the beneficiary with the activities of daily living, respite care, transportation, living arrangements, and home renovations to accommodate their needs.
Contact Vasiliadis & Pappas today to begin your Special Needs planning.