When it comes to estate planning, many create it to serve their needs and wishes in the event of their death or incapacitation. While these are not easy events to consider or plan for, the reality is that you never know what the future holds.
The same goes for parents of children with special needs. An estate plan could serve a child, ensuring that they are cared for now and in the future.
Special needs trust
If you are a parent with a special needs child, you know planning is crucial. Because your child relies on your support for care, you are likely concerned about what might occur if you fall ill or pass away. Creating a special needs trust can address those concerns.
At its most basic level, a special needs trust is designed to provide income for a person who has special needs. Beyond that, it can be adapted to many specific needs. One common goal for a special needs trust is to maintain the beneficiary’s eligibility for government benefits while making sure they have a dependable source of income.
Impact on benefits
When an individual qualifies for government benefit programs such as Medicaid, VA benefits or Supplemental Security Income benefits, receiving funds could impact their eligibility and amount received. But, if these funds are set up properly in a trust, they will not exceed the thresholds for eligibility for the benefits programs.
Parents always want what is best for their children and ensuring that they receive necessary care and benefits now and well future is vital.