Special Needs Trust
It may seem counter-intuitive, but an inheritance can actually be a bad thing for children who are disabled. If you have children who have special needs, physically or mentally, then a Trust is essential.
Without a Special Needs Trust, the child’s inheritance could cause more harm than good. Watch the following visual summary on Special Needs Planning.
Without a Special Needs Trust, the child’s inheritance could cause more harm than good. Watch the following visual summary on Special Needs Planning.
Government SupportThere are government programs that pay essential expenses for individuals who do not have the financial means to support themselves. These programs include Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), the medical assistance program of the Ohio Department of Human Services (Medicaid), and the appropriate Regional Center for the developmentally disabled. These programs cover minimal benefits and may not provide supplemental needs such as clothing, education, programs of training, vacations, and essential dietary needs. For some of these programs, an inheritance can disqualify the individual from receiving assistance. When the children receive the inheritance, the funds will be “spent-down” until the individual is again without sufficient assets. He or she will then have to go through the process of reapplying for the respective programs. Special Needs Trust Protection Creating a Special Needs Trust will protect the assets and ensure your child have both government assistance as well as the supplemental needs in life. Even if your child is not on Medicaid or Social Security (SSI); a Trust could be established to protect against irresponsible spending habits or third parties who may take advantage of your child's trust. There are multiple types of Trusts associated with this planning method. I have generally referred to these Trusts, collectively, as "Special Needs Trusts"; feel free to contact me to schedule an initial consultation to address which Trust may be necessary in your particular circumstance. |