Special needs trusts and Medicaid

28 Dec, 2021

On Behalf of Mack & Mack Attorneys | estate planning,probate administration

If you have a loved one with special needs, you may need to take various issues into consideration when it comes to their well-being, whether you currently help them with daily tasks or you worry about their future. Setting up a special needs trust is one way that you could secure peace of mind and put your worries to ease with respect to their future.

Special needs trusts allow disabled individuals to receive assets from their loved ones without losing their eligibility for crucial programs, such as SSI and Medicaid benefits.

Special needs trusts and Medicaid eligibility

If you are thinking about creating an estate plan to help your disabled loved one after your death, you should realize that some types of estate plans can negatively affect their Medicaid eligibility. However, the Social Security Administration states that special needs trusts do not impact a disabled person’s Medicaid eligibility.

The special needs trust exception

According to the SSA, there are a number of requirements that a trust must satisfy in order for a disabled person to qualify for Medicaid’s special needs trust exception. For starters, the disabled person must be under the age of 65. Moreover, the trust must solely serve the disabled person’s benefit.

Before setting up a special needs trust, or any other type of estate plan, you need to go over many different factors. Make sure you carefully review your options and look into the ins and outs of the estate plan beforehand. By setting up an effective estate plan, you could secure peace of mind for yourself and your loved ones.

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