Special Needs Trust: Do you need one?
Are you caring for someone with special needs? If you pass away before that person, what will happen to them? Who will provide for their care? How will they be taken care of? Is your loved one on Medicaid? Are you leaving them an inheritance? If a person receiving Medicaid benefits is left assets that push them over the Medicaid threshold, they will be "kicked off" Medicaid. This can cause serious issues for someone who needs the benefits provided by Medicaid. These unintended consequences can be avoided by setting up a Supplemental Needs Trust, also commonly referred to as a Special Needs Trust, for your loved one. By leaving an inheritance to someone in this statutory trust, your loved one can still qualify for important government benefits. Medicaid planning is a complicated subject. Be sure to visit an attorney who is experienced in this particular type of planning when you update your estate planning documents.