Special Needs

Adults with Challenges:

Sometimes persons with a disability are seeking financial assistance with the cost of their care but they have assets in excess of what the government allows.

Although it is permissible to “spend down” the person’s assets by purchasing things they need, that may still not be enough to get their asset level into the qualifying range. And, of course, the government, specifically Medicaid, never allows a person to make a gift of their assets, even to charity; making gifts causes ineligibility. Besides, the person might need to use those funds for some special need in the future because, let’s face it, government benefits don’t pay for everything!

This is where Special (or “Supplemental”) Needs Trusts come in. These trusts preserve the person’s assets without incurring a disqualification penalty or causing the person to lose benefits they already have. At the same time, the trust assets are able to be used for the person’s care to provide for things not covered by government benefits.

Disabled Children:

Another very important use for these special trusts is to use them to provide for a disabled child after the death of that child’s parents. The trust allows the parents to leave money for the care of the child without disturbing the child’s government benefits. Parents should never leave money directly to the disabled child and these trusts preserve the money for a trustee who uses the funds to provide for the special needs or interests of the child, enriching the child’s life.

You can contact our office for more information about Special Needs Trusts.