Special Needs Trusts are important to ensure a beneficiary is not disqualified from receiving public benefits. Although the beneficiary may typically own a maximum of $2,000 in personal assets, a trust can hold unlimited assets for their benefit. This trust can be used to supplement care above what is provided by the government.
It is important to create a Special Needs Trust rather than leave money to another sibling or relative for their care. The funds you intend to be used for your loved one with special needs will be subject to creditors of the sibling or relative and may be accessible to their spouse upon divorce.
Additionally, a person receiving public benefits who is awarded a personal injury settlement will need a special needs trust in order to continue to receive those benefits. Supplemental Security Income and Medicaid have strict income and asset requirements. it is important to keep assets such as settlements and inheritance in special trusts so that your loved one will not be disqualified from the public benefits which they are entitled to. If you have questions special needs trusts, please call us today for a free consultation at (619) 535-1405.