Providing your loved one with assets in a special needs trust can be significantly helpful. However, it’s best to ensure you know what the special needs trust should pay for and what it shouldn’t cover. Keep in mind, this type of trust is designed to supplement income without impacting your government assistance.
While it helps to supplement income, it won’t pay for everything. Here are some of the things for which the special needs trust won’t pay.
Food and Groceries
Buying food at the grocery store or a restaurant should not come out of the special needs trust as these are typically a part of government assistant programs. In some situations, if the special needs trust is used for these types of expenses, it can result in a reduced benefit amount.
Rent and Mortgage
In many situations, those with special needs receive living assistance from the government (group homes, etc.) and wouldn’t have to pay for some of those costs. Paying rent or mortgage using funds in the special needs trust could be a potential issue and impact how much your loved one receives through government assistance.
Similar to rent and mortgage, paying for utilities out of the special needs trust can impact how much a person receives in benefits. It’s best to avoid paying for things that typically would be covered by government programs that your loved one would normally receive.
Special needs trusts can pay for medical care not covered by government aid, specialized medical equipment, travel, and more. If the special needs trust is used for something that would typically fall under government aid, the individual with special needs may experience reduced benefits or other issues.
At Legacy Enhancement Trust, we want to provide you with valuable insight to help you make decisions to care for your loved ones. If you need to discuss a special needs trust, know that we’ll be by your side and guide you through the process.
Ready to get started and establish a special needs trust? Call us today at (888) 988-5503 or fill out an online form.