04/19/2023
What You Need to Know for Special Needs Trusts.
If you’re the parent of a child who may not be able to financially support themselves due to a disability or medical condition, you should consider establishing a special needs trust. A trust can provide additional financial resources to a special needs individual without disrupting government resources.
Some government benefits that a person with special needs may rely on, such as Supplemental Security Income (SSI), Medicaid and others are “means tested,” meaning they are only available to those with limited income or assets. And, they often have extremely low asset limits. For example, any individual using SSI may not have more than $2,000 of countable resources.
When a parent wants to provide support to a special needs person after death, it’s crucial that the parents’ assets pass correctly to ensure the assets do not cause the special needs person to lose their government benefits.
Any resources left directly to the beneficiary without use of a trust could disrupt these benefits, ultimately taking money and support away from the beneficiary. The provisions to create a special needs trust can be incorporated in a parent’s revocable trust and do not have to be a stand-alone document.
