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Special needs trusts and Medicaid eligibility

On Behalf of | May 3, 2021 | Uncategorized

Thinking about leaving your loved ones behind after your gone isn’t easy. After all, most people find death to be an uncomfortable subject. However, by confronting reality, you’ll find that you can put your mind at easy by knowing that your estate and your loved ones will be well cared for when the time comes. This might be especially important to you if you have a loved one with a serious medical condition that requires extensive care and treatment.

Is a special needs trust right for you?

The costs incurred while caring for a loved one with special needs can be enormous. As a result, without your support, your loved one might find it difficult to get by. But merely leaving them your assets via will could leave them in a position where they use up those assets pretty quickly, leaving them without needed support after that point. That’s where a special needs trust might be able to help.

This type of trust allows you leave assets to your loved one without those assets counting as income for purposes of government program eligibility. As a result, through one of these  trusts, you might be able to provide support for you loved one while still allowing him or her to obtain Medicaid benefits.

How special needs trust assets can be used

There are some limitations on how special needs trust assets can be used, but they’re not as restrictive as you might think. In fact, the trust can help pay for a home, a vehicle, and even personal effects and furnishing without affecting Medicaid eligibility. Thus, a special needs trust is a very powerful way to give your loved one with the long-term support he or she needs.

Get the estate planning analysis you need

A special needs trust is just one aspect of estate planning that might be beneficial to you and your loved ones. To ensure that you’ve got the custom-tailored plan in place that suits your needs, consider discussing your goals and your vision for the future with an estate planning attorney who is right for you.