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Reviewing the benefits of special needs trusts

On Behalf of | Apr 29, 2024 | Estate Planning

A special needs trust is a valuable legal tool designed to protect and provide for those with disabilities or special needs. By setting up a special needs trust, families can ensure that their loved ones receive the necessary care and support that they need.

It is important for families considering a special needs trust to review some of the advantages of this option.

Government benefits

According to the California Department of Health Care Services, one of the key perks of a special needs trust is that it allows those with disabilities to maintain their eligibility for essential government benefits. For example, Medicaid and Supplemental Security Income. By placing assets in a trust rather than directly in the individual’s name, the funds are not counted against their eligibility for these important benefits.

A special needs trust can also provide supplemental financial support to enhance the quality of life for people with disabilities. The funds in the trust can be used to cover a wide range of expenses not covered by government benefits, such as medical treatments, therapies, assistive technology, education, housing, transportation and recreational activities.

Assets and inheritance

Setting up a special needs trust allows families to safeguard assets and inheritance for the benefit of their loved ones with disabilities. By structuring the trust appropriately, parents and caregivers can ensure the responsible management of funds. Funds can be used to meet the specific needs of the individual without risking loss or mismanagement.

Knowing that a special needs trust is in place can offer peace of mind to families and people with disabilities. By creating a comprehensive plan for financial security and long-term care, families can rest assured that their loved ones will be well taken care of even after they are no longer able to provide direct support.