If you have a loved one with a disability, planning for their long-term care should be among your top priorities when making your estate plans. You want to ensure they have financial stability and access to the support they need when you are gone. A special needs trust (SNT) can help you achieve this.
Unlike a direct inheritance or financial gifts, an SNT allows you to set aside funds for a loved one with a disability. The proceeds from the trust can be used to cover expenses that will improve your loved one’s quality of life. These include:
- Medical treatments not covered by insurance or
- Specialized therapies or equipment
- Educational programs or vocational training
- Transportation or travel expenses
- Recreational activities and hobbies
Additionally, the trustee you appoint to manage the trust is legally obligated to act in the best interests of the trust and its beneficiaries. This ensures the trust assets are used appropriately per the established guidelines.
Your loved one will still be eligible for government support
Assets in an SNT are not counted as part of the beneficiary’s personal resources when assessing their eligibility for government support programs like Supplemental Security Income (SSI) and Medicaid. These programs have strict income and asset limits. Leaving your loved ones assets through a will or gifts could disqualify them from government support.
SNT assets are safe from third parties
With an SNT, you do not have to worry the assets in it will change hands after you are gone. SNTs are separate legal entities, distinct from the trustee and beneficiaries. This keeps the assets safe from legal action like divorce or creditors.
Seeking qualified legal assistance can help you learn more about estate planning tools like SNTs and other strategies that could make all the difference in securing a stable, worry-free future for the ones you care about most.