You love your child very much, but the reality of their future is that they may not be able to take care of themselves alone. For this kind of situation, a special needs trust can be invaluable. With a special needs trust, you can help protect your child’s Supplemental Security Income (SSI), Medicaid and other benefits while still leaving them assets and money that they may need in the future.
A special needs trust could be the right choice for you, and it’s a wonderful option you can discuss while working on your estate plans. With a special needs trust, you’ll be able to help your child cover:
- Home care expenses
- Living expenses
- Educational expenses
- Medical costs
- Physical rehabilitation costs
- And other needs without impacting their right to state or federal benefits.
Should you set up a special needs trust if your child doesn’t currently have state or federal benefits?
It may be a good idea to set up this kind of trust regardless of their current benefits. In the future, if your child wants to seek Medicaid or disability benefits, you want to make sure that they are still able to keep their assets and the funds that belong to them. With a special needs trust, the assets aren’t in their name, which helps them qualify for the benefits they need through the appropriate systems.
Your attorney will be able to give you more information about special needs trusts and if one would be beneficial under your circumstances. If so, they can help you set it up so that your child has the protection and support that they need in the future.
