If you want to set up a special needs trust for your disabled loved one, or create such a trust for yourself as someone with a disability, you should review the ins and outs of this type of estate plan closely. In addition to going over different requirements and creating the estate plan carefully, it is important to understand the different ways in which these plans make life easier for those with disabilities.
In fact, special needs trusts serve as a lifeline for many people who struggle with disabilities, and a plan could provide financial and emotional support for you and your loved ones.
Special needs trusts and public assistance
The Social Security Administration reports that while some trusts count as resources that disqualify one from receiving SSI benefits, special needs trusts stand as an exception. Therefore, if you have a special needs trust, the assets in this trust do not affect your eligibility to receive SSI benefits.
Furthermore, a special needs trust could also help you maintain your eligibility for Medicaid, while assets in other types of trust could disqualify you (or your family member) from receiving these benefits.
Other reasons to set up a special needs trust
Aside from protecting benefits, a special needs trust could help support you or your loved one in the future. These trusts can provide peace of mind, which is especially important if you or someone in your family faces hardships due to a disability. If you decide to move forward with a special needs trust, stay positive and go over the unique details surrounding your situation.