If you have a loved one who was disabled as a result of an accident, you might wonder how to best protect them financially. Many times, people in this situation try to qualify for government assistance, such as Supplemental Security Income (SSI), assistance from Medicare, assistance from Medicaid, and more. Sometimes it is necessary to create a special needs trust to make sure that your loved one can qualify for benefits like these. To learn more about the special needs trust and how it might benefit your family, read on.
What is the Special Needs Trust?
A special needs trust is a form of trust. Trusts are created to allow one person to manage another person’s property. The person in charge of the property is referred to as the trustee, while the person benefiting from this arrangement is the beneficiary. Trusts last for as long as needed, generally until the funds are taken out of the trust or the beneficiary passes away.
The special needs trust is a type of trust that can benefit those facing mental or physical disabilities. They are especially useful in the event that a person’s disability affects their ability to manage their own finances. The beneficiary’s needs and lifestyle are kept in mind when creating this type of trust for them.
In many cases, a family member of the beneficiary is chosen as the trustee of the trust. For example, you might decide that it is best for your injured loved one if you become the trustee of their special needs trust. You or another family member can manage the funds with the beneficiary’s best interest in mind.
Benefits of a Special Needs Trust
One benefit of this type of trust is having a trusted person with your loved one’s best interest in mind manage their finances for them. Another benefit is helping your loved one qualify for government aid. Trusts such as this one are ignored by the government when someone applies for aid. This is because the beneficiary of the trust does not have access to the trust and cannot make decisions regarding the money or property.
Oftentimes, leaving money or property to someone with disabilities in a special needs trust is a better option than simply leaving them the property in a Will. This is because the special needs trust will not disqualify them from government assistance. You could also set up an inheritance for a disabled loved one through a special needs trust. Another option is to have compensation from a personal injury case go to a special needs trust. All of these options are meant to protect your loved one, manage their finances, and make sure that they still qualify for government assistance.
If you are interested in setting up a special needs trust for a disabled loved one, you can contact my office for more information. I can answer any questions that you have, help you determine if this trust is right for your loved one, and direct you on how to set up such a trust. For further assistance, contact my office.