Why Use a Special Needs Trust?

Directly bequeathing money or assets to someone with special needs might jeopardize their access to vital programs like Supplemental Security Income (SSI) and Medicaid. These public benefits cover essentials like food, housing, and clothing but lack the means to support a more enriched life. A Special Needs Trust (or Supplemental Needs Trust) provides a workaround, allowing assets to be held for the beneficiary’s benefit while maintaining eligibility for government support, as long as certain conditions are fulfilled.

What’s the Best Time to Set Up a Special Needs Trust?

A Special Needs Trust is typically recommended before the beneficiary turns 65. For those with a disabled or chronically ill loved one, establishing it earlier can be a smart move. A key benefit is that it allows immediate transfer of funds—such as gifts, inheritances, or legal settlements—into the trust, safeguarding the beneficiary’s eligibility for public benefits.

Who Is Eligible to Create a Special Needs Trust?

Though parents often establish Special Needs Trusts for their disabled children, any third party can create one for a disabled beneficiary. Due to the legal intricacies, professional guidance from an attorney is crucial to avoid errors that could expose the trust to government scrutiny. Our law firm brings the expertise needed to design robust, reliable trusts for your beneficiary.

Is a Special Needs Trust Necessary for a Wealthy Family?

Even with considerable wealth, a Special Needs Trust is essential to protect your disabled beneficiaries from creditors, such as in personal injury lawsuits where trust assets remain safe from claims. Moreover, since these assets don’t count toward benefit eligibility, they can fund supplemental needs that enhance quality of life. Without this protection, expensive private care could erode even large estates over time.