Mark Glendon

Benefits of a Special Needs Trust

If you have a family member with special needs, you may want to support them financially. However, you should be cautious about the effect your generosity might have on their eligibility for assistance programs that require their income to remain below a certain threshold. Otherwise, you might accidentally push them beyond income eligibility requirements and cause problems instead of providing assistance.

Many people find themselves in this situation but are unsure of how to proceed. A special needs trust lawyer can provide you with specific recommendations based on your situation and circumstances, however, a special needs trust is likely a viable solution.

What is a special needs trust?

A special needs trust is a legal arrangement that allows an individual to provide additional financial support to someone with special needs, without reducing their eligibility to receive benefits from disability benefit programs like Social Security, Supplemental Security Income (SSI), Medicaid, or Medicare.

A special needs trust works by covering the percentage of a person's needs that are not covered by other assistance programs. As long as the funds in a special needs trust are not used for certain expenses, they do not count toward qualification for public assistance programs.

What are the benefits?

Now that you know what a special needs trust is, let's talk about why it's often necessary and beneficial for families and individuals. First, there are two main benefits of a special needs trust:

• The person supplying the funds gets the peace of mind that the money will only be used for the specific expenses they stipulate.
• The person who is receiving the funds can accept the financial support without worrying about jeopardizing their eligibility for other assistance programs.

Special needs trusts are also irrevocable and creditors cannot seize them, nor can the winner of a lawsuit. That means they are safe and protected for their intended purpose: to financially benefit the disabled individual.

Find a special needs trust lawyer

If you'd like to establish a special needs trust for a loved one with special needs, the best way to do it is by hiring a trust lawyer. This type of attorney will have the knowledge and experience to guide you through the process of creating a special needs trust and ensuring that it is valid.

To find a special needs trust lawyer, ask trusted friends and family members for referrals or you can use the American Bar Association's (ABA) interactive state-by-state lawyer-referral directory.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at elder law blog.