What is a Special Needs Trust?
When doing your estate planning, consider discussing with your Palm Springs disability attorney the benefits of having a special needs trust. This kind of trust allows loved ones to provide for family members with a disability, but ensures that they will still continue to receive government healthcare benefits such as Medicaid or Medicare and financial support such as SSI. The total sum of money that you allot to them is kept in a special fund, which distributes a set monthly amount to them that is within the government guidelines of what they are allowed to receive and still keep their benefits.
How the Funds Can Be Used
The funds that a beneficiary of a special needs trust receives can be used to cover the expense of items that exceed the amount that funds from SSI covers. Usually the amount of SSI is only enough to cover very basic essentials such as utility bills and housing, and it leaves little money left for clothing, household goods, or vehicle expenses. A special needs trust is a way to ensure that your beneficiary doesn’t go with out items that help contribute to them having a better quality of life.
A special needs trust can also be set up if a person receives money from a personal injury lawsuit, or from a party that wants to care for them as part of their estate planning. Legal guidelines provide that those who are willing to set up a third party special needs trust such as this helps them qualify for Medicaid or Medicare. This is because they are reducing their income considerably by gifting it to another person.