What is a Special Needs Trust?
The American Community Survey (ACS) estimates that 12.8% of Americans live with six types of disabilities: cognitive, vision, hearing, ambulatory, self-care, and independent living. If you have a beloved person with special needs in your life, you may be wondering how you can help them financially maintain their quality of living without compromising their eligibility for government benefits.
Certain disabilities necessitate custodial care services, ongoing medical treatments, and a multitude of physical and cognitive therapy options. As your loved one ages, they may struggle to manage these bills without the assistance of Medicaid, Social Security, and Medicare – especially if you pass away and are no longer able to provide additional funds that cover their basic needs. These government programs work on a limited budget and award benefits based on “need” and available resources. If your loved one inherits assets after your passing, they may lose the ability to qualify for these life-saving benefits.
Fortunately, a special needs trust can provide your loved one with ongoing financial assistance while safeguarding their eligibility for governmental programs and benefits. A comprehensive and structured special needs trust can allocate funds that cover your loved one’s medical appointments, medications, nursing home expenses, and more.
How Does a Special Needs Trust Work?
When you establish a special needs trust, you leave your assets to a trust instead of a beneficiary. Because these assets technically don’t “belong” to the beneficiary, your loved one can continue to receive financial assistance from your estate without sacrificing their government benefits. A trustee or non-profit organization is responsible for managing the trust and will apportion the funds per your wishes. As a trustor, you can give your loved one the tools they need to live a safe, healthy, and stable life.
What Is a Pooled Special Needs Trust?
But what steps should you take if your loved one inherits money? At Legacy Enhancement, we take great care in helping individuals and families establish trusts that assist people with special needs. We can handle trusts of all sizes and can even help develop a pooled special needs trust. This option pools and invests funds from multiple people so that each beneficiary has their own account. A pooled special trust is designed to help special needs individuals retain benefits after receiving money from an inheritance, legal settlement, or divorce. Our highly skilled trust managers can handle the trust and field any questions from SSI and Medicaid.
Explore Your Options with a Trust Manager Today
Legacy Enhancement is a non-profit organization that was established to provide legal assistance to special needs individuals and their caretakers. Please contact our trust managers if you are interested in establishing a special needs trust or have questions about your options. We can guide you through this legal process and help you develop a trust that provides for your beneficiary.
Discover peace of mind. Contact Legacy Enhancement at (888) 988-5503 to schedule a free consultation.