If you have a disabled family member who depends on public assistance, you need to approach the estate planning process carefully if you want to include them in your estate plan. Sometimes, people decide to create special needs trusts that benefit disabled loved ones and these trusts come with multiple benefits.
Disabilities that cause physical, emotional and financial hardships are often challenging for entire families. Fortunately, special needs trusts can help familes work prepare for the future and get rid of uncertainty.
Looking at the benefits of special needs trusts
The California Department of Health Care Services covers some of the benefits of special needs trusts on their site. For starters, these trusts allow disabled beneficiaries to maintain their eligibility for public assistance programs that they depend on, even if they acquire assets that would otherwise disqualify them from assistance.
If you have a loved one who with a disability, a special needs trust could protect their eligibility to receive disability benefits and Medicare.
Special needs trusts can help entire families
When an effective special needs trust is set up, families can find peace of mind and help ensure that their disabled loved one receives the help they are counting on in the future. Often, those with permanent disabilities need help from multiple family members and receiving even a relatively modest amount of assets as a beneficiary can disqualify those with disabilities from government benefits, but families can avoid this by contributing to a special needs trust.
Make sure you explore all of your options closely and focus on safeguarding your disabled loved one’s financial future.