Should a special needs trust be part of your estate plan?
The thought of leaving your loved ones behind can be stressful, especially if you have a family member who needs extensive care and support. You might worry about how they’re going to pay for their medical care and meet their basic needs, as well as how their inheritance may affect their ability to qualify for government benefits.
Fortunately, sound estate planning might be able to help you here. A special needs trust, for example, allows you to leave assets to your loved one in a way that keeps those inherited assets from being counted for purposes of government program eligibility. In other words, you can use a special needs trust to ensure that your loved one continues to qualify for Medicaid and other government program.
What can a special needs trust pay for?
A special needs trust has some limits on its uses, but in reality the assets can be utilized expansively. For example, a special needs trust can pay for each of the following:
- A primary residence
- A vehicle
- Home furnishings
- Personal items
- Medical care not covered by insurance
- School tuition
- Job coaching
Remember, these are just a few of the expenses that can be covered by a special needs trust. So, this estate planning tool can be a great way to ensure that your loved one has the support that he or she needs and deserves.
Competently navigate your estate planning
A lot of people are confused by the estate planning process, and it’s not easy to face your own mortality. However, most individuals feel like a weight has been lifted off their shoulders once they complete their estate plan. But to competently create one of these plans, you need to know the law and how it applies to your set of circumstances. If you’d like to learn more about how to go about doing that, then you may want to consider speaking with a legal professional of your choosing.