When you have loved ones who have special needs, one of the things you may choose to do is to set up a special needs trust for their benefit. Whether you’re a sibling, grandparent or even someone unrelated to the person with a disability, you have a right to create a trust for them that will provide them with the support they need in the future.
What’s the benefit of a special needs trust?
A special needs trust allows you to exclude certain assets from the individual’s countable income and resources. That way, they’ll be able to reap the benefits of the trust but won’t have their governmental benefits affected. For example, if your cousin has Alzheimer’s disease, for example, you may want to leave them a trust that helps cover their personal expenses while not affecting their right to Medicaid.
Without a trust, any assets you leave to a person with a disability may need to be spent down right away. They would have to use them to cover their care and expenses. They could end up losing their social benefits, all because you left them money or assets (and it may not even be that much).
Is it worth talking to an attorney about a special needs trust?
If someone in your life has special needs, then setting up a special needs trust is definitely worth your consideration.
Your attorney can help you set up a trust that makes sense so that they can get the support you want to give to them without having it negatively affect them in other ways.