I have a loved one who is disabled and receives government benefits. Can I provide them with financial support after my death without disqualifying them from receiving benefits?

If you have a loved one who is disabled, government benefits like Medicaid or Supplemental Security Income (SSI) are essential for their support and you do not want to compromise their eligibility. In many cases, a Special Needs trust may allow them to benefit from your estate without disqualifying them from their government benefits.  

 

Needs-based government benefits like Medicaid and SSI have strict, specific income and asset limits. At your death, if you leave assets directly to your loved one and those limits are exceeded, they may be disqualified from receiving further assistance. However, a Special Needs Trust can hold and control those assets for the benefit of your loved one without being considered their personal assets or income. Your loved one is likely using government benefits to pay essential expenses like food, utilities, housing costs, and medical bills, but they often are not sufficient and do not cover all their needs. Assets in a Special Needs Trust can be used to supplement government benefits, and for extra comforts that can enhance their quality of life, such as:

• Medical or dental expenses beyond those covered by government benefits
• Education, including tuition, vocational training, enrichment programs, books, or recreational experiences
• Psychological and specialized therapy
• Physical therapy
• Private caregivers
• Transportation
• Special equipment for mobility and accessibility, including wheelchairs, ramps, lifts, etc.
• Entertainment, including vacations, movies, gym memberships, hobbies, etc.

 

Before creating a Special Needs Trust, it may be helpful to consider the wants and needs of your loved one, including what expenses they will need help with and how frequently they will need to receive money from the trust. You also will need to determine who will receive the remaining assets of the trust when your loved one dies.  

 

Special Needs Trusts can be a critical tool in securing the financial well-being of someone with disabilities. If you are interested in learning about a Special Needs Trust and other estate planning options, please contact Berdan Law today for a free consultation. Partnering with an experienced attorney ensures your estate plan is tailored to your specific needs and accomplishes your goals.