For those with Special Needs, there are government programs to financially assist them with basic needs for living. Funds like a Settlement from personal injury or inheritance could disqualify them from these benefits far longer than the settlement amount could provide for. For this reason, a Special Needs or Supplemental Needs Trust can be established to hold funds for their benefit but not ownership.
If you or a family member has a disability, you may qualify for Supplemental Security Income (SSI). However, if the eligible person receives more than $2,000 in assets they may be disqualified for a 5 year look back period. This can happen if a parent passes away and the disabled child inherits a small amount of money or assets and can be very difficult and costly for the eligible person.
By forming a Supplemental Needs Trust for the eligible individual, the Trust can receive settlement funds, gifts, and inheritance for their benefit without disqualifying the individual from their SSI benefits.
This is critical when receiving settlement money from a personal injury case, or to help your depending disabled adult child find their independence while still improving your child or parent’s quality of life.
We are here to help you determine if this is a good fit for you or your family.
To learn more or get started on your estate plan, just schedule a time to visit us for a no obligation complimentary consultation.