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A special needs trust can help plan for your loved one’s care

On Behalf of | Apr 19, 2024 | Elder Law, Estate Planning, Guardianships, Medicaid Planning, Probate |

If you have a loved one with special needs, planning for their long-term care and financial security is likely a top priority. A special needs trust can help you achieve that. This legal arrangement can provide peace of mind by ensuring that your loved one’s needs are met now and even after you are gone.

A special needs trust allows you to set aside funds for your loved one’s benefit without jeopardizing their eligibility for programs like Medicaid and Supplemental Security Income (SSI). The trust is specifically designed to cover expenses that government benefits may not, such as medical care, education, transportation and personal care attendants.

Other benefits of a special needs trust

A special needs trust provides a structured way to manage and disburse funds for your loved one’s care. You can appoint a trustee to oversee the trust and make decisions about how the funds are used. The trustee is legally obligated to act in the best interests of the trust and its beneficiaries, which adds a layer of protection for your loved one.

A special needs trust can also help protect your loved one’s assets from third parties. For instance, creditors cannot seize assets held in the trust to recover debts your loved one owes. Trust assets are not subject to division in a divorce either. This ensures the funds you set aside for your loved one’s care and wellbeing are used as intended.

Creating a special needs trust

Setting up a special needs trust requires careful consideration. You want to make sure that the trust is set up correctly, especially from a legal perspective. Otherwise, you may end up with an invalid or void trust. Your choice of trustee for the trust also matters as they will have significant control over the trust and its assets.

Seeking legal assistance to learn more about how these kinds of trusts work can help ensure your loved one’s needs are well taken care of in the future.