A special needs trust is a valuable tool that can provide security for families who have a loved one with special needs. When a family member develops special needs, it is important to plan for their long-term care and financial well-being.
In fact, these trusts offer a number of perks for those with special needs and their loved ones.
Government benefits
According to the Department of Health Care Services, a special needs trust allows families to set aside funds to support their loved ones without jeopardizing their eligibility for government benefits. For example, Medicaid and Supplemental Security Income. Many individuals with special needs rely on these programs to access healthcare, housing and other essential services. However, these benefits are means-tested, meaning that recipients must meet certain income and asset requirements to qualify. By placing funds in a special needs trust, families can ensure that their loved one can continue to receive government benefits while still having access to additional financial support.
Another key benefit of a special needs trust is that it can help ensure that the individual with special needs has access to necessary care throughout their lifetime. By setting up a trust, families can designate a trustee to manage the funds on behalf of the individual with special needs.
Flexibility
A special needs trust can provide a level of flexibility and customization that other financial planning tools may not offer. Families can specify how to use the funds in the trust, such as for medical expenses, education, housing or recreational activities. This allows families to tailor the trust to meet the unique needs and preferences of their loved ones with special needs, ensuring that they receive the care and support that is most beneficial to them.
Planning for the long-term financial security of a family member with special needs is pivotal. A special needs trust can provide families with peace of mind and assurance that their loved one will receive the support they need for years to come.