When people decide to set up an estate plan, they have many options, from creating a will to deciding which type of trust will be the most beneficial for their loved ones. Families who have loved ones with special needs often consider using a special or supplemental needs trust to provide an inheritance and still protect government assistance.
If a loved one has special needs, you may be worried about how you can continue to care for them after you have passed away. You may have heard that an inheritance may disqualify a person from receiving much needed government assistance like SSI or disability. Congress recognized this concern and created a particular kind of trust that can be used to pay for things that government assistance does not. These supplemental needs can include a wide variety of things, from a car or a cell phone, to treatments and services that Medicaid or Medicare does not cover.
The supplemental needs trust also allows you to choose a trusted adult or trust company to care for and assist your loved one. This can provide a considerable amount of peace of mind. This is also a good time to make sure that your loved one has the right advocates in place to help with other kinds of decisions as well—from health care to living arrangements.
Before moving ahead with any estate plan, it is essential to understand the ins and outs of the strategy and ensure that you have identified the most beneficial solution. For some people, another type of trust or a will may suit their needs better, and we understand how tricky it can be for some people to decide.
Feel free to spend some time and read through our website if you are seeking more information on various financial topics related to setting up an estate plan.