Law firms around the country have been serving an increasing number of clients who require information regarding how to establish a trust for their special needs child. For a variety of reasons, this growing segment of the population needs the counsel of an experienced trust attorney to ensure that their family members who are unable to care for themselves; will be taken care of when their legal guardians are no longer living.
What is a Special Needs Trust?
A special needs or supplemental needs trust is essential for individuals who are incapacitated or disabled. A special or supplemental needs trust can preserve resources for the individual without jeopardizing their eligibility for supplemental security income or SSI and social security disability or SSD. A special needs trust also allows the individual to maintain their health and life insurance through the Medicaid program.
How a Special Needs Trust Preserves Financial Resources
Without a qualified special needs trust, should a special needs person receive resources greater than two thousand dollars or have income that exceeds three times the federal poverty limit, they would lose their eligibility for SSI and Medicaid. Furthermore, re-qualification would necessitate that the individual deplete their financial resources in order to be able to eligible for reinstatement of those public benefits.
Providing for a Special Needs Trust
If you are a parent or a grandparent of a special needs child, it is possible to provide for a supplemental needs trust in your will. You may also fund a special needs trust while you are still living, without jeopardizing the recipient’s eligibility for public benefits.
It is also possible to create a special needs trust in advance of a disabled, minor child receiving significant financial resources. If these resources will disqualify the recipient for public benefits, it is imperative to establish a special needs trust that can be certified by the court or signed and sponsored by the parent or grandparent that will maintain the minor child’s eligibility for public benefits.
If you are caring for a special needs child and want to learn more about establishing a special needs trust, please consult with a DuPage County estate planning attorney to review all of your options. Please contact Momkus LLC for a consultation. We look forward to speaking with you.