Those creating an estate plan have many issues to think about, whether they do not know how to distribute property among their loved ones or they are unsure if a certain type of estate plan is the smartest strategy. If you have a loved one with special needs, you have additional issues to take into consideration. For many families, special needs trusts are a lifeline when a loved one who has a mental or physical challenge that leaves them unable to care for themselves.
If you are thinking about setting up a special needs trust, it is helpful to go over the various reasons why this option is often advantageous.
Understanding how special needs trusts protect government benefits
According to the California Department of Health Care Services, special needs trusts allow disabled people to retain critical government benefits while also gaining access to assets from a loved one’s estate. Sometimes, disabled individuals lose access to government benefits that they are counting on because of inheritance. For example, those who count on Medicare or Social Security Disability sometimes become ineligible as a result of their loved one’s estate plan, and special needs trusts help prevent this problem.
Understanding the emotional perks of a special needs trust
Aside from the financial perks of special needs trusts, this option also provides peace of mind. Families often worry about how their disabled loved one will fare down the road and these trusts provide a sense of security, often lowering stress levels and establishing a clear path forward. Sometimes, it is helpful to discuss special needs trusts with loved ones before moving forward.