Special Needs Trusts
Special needs trusts, also known as “supplemental needs” trusts, are legal
arrangements that allow disabled individuals to inherit funds without
compromising their government benefits.
Most people don't realize that an inheritance can cause problems
for someone who receives government disability assistance. Under
current law, anyone who receives more than $2,000 is no longer
eligible to receive federal disability aid – including Medicaid.
That means without proper planning, a well-intentioned bequest to a
disabled family member can turn into a liability that blocks access to
crucial health benefits. A special needs trust avoids this drawback
by:
- Establishing a trustee who can manage the assets for
the beneficiary. Government rules state that a disabled
person cannot have a trust, so the special needs trustee assumes
responsibility and authority of the trust.
- Purchasing items or services that government
assistance does not cover. This point is particularly
important, because the intent of a special needs trust is to
supplement government benefits, not duplicate them. For example,
the trust might enable the beneficiary to purchase special medical
equipment that Medicaid doesn't cover, or pay for a home health
care nurse. Special needs trusts can even help the beneficiary
purchase a home or buy clothing; the funds just can't be used for
the same needs that the government aid already covers.
At TrustCounsel, we are experienced in drafting and administering
special needs trusts for clients in North Carolina,
Tennessee and Florida. We recognize that government assistance only
goes so far, and a disabled person shouldn't have to give up basic
needs because a loved one wants to provide some additional financial
help.
If properly set up, special needs trust can make a vast difference
in the beneficiary's life. If you are interested in drafting a special
needs trust, or you have questions about protecting assets for a
disabled family member or yourself, we are ready to help. We have
offices in Chapel Hill and Pittsboro, and we serve clients throughout
the United States, affiliating with local counsel when advisable to
ensure the best possible representation. Please
contact TrustCounsel today or call us at
800-201-0413. E-mail:
info@trustcounselpa.com.
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