Technically, this is possible, and need-based government benefit recipients sometimes come into money through personal injury settlements as well. A parent, a grandparent, or a legal representative could use these assets to establish a trust on behalf of the disabled individual. This would be called a first party or self-settled special needs trust. That’s the good news, but the bad news follows in the form of Medicaid estate recovery. Assets that remain in the trust after the death of the … [Read more...] about Could a person that receives an inheritance just establish a special needs trust?
Special Needs Planning FAQs
Instead of leaving a loved one that is relying on these programs a direct inheritance, you could fund a supplemental needs or special needs trust. The individual in question would be the beneficiary, and you would name a person or entity to act as a trustee. There are professionals that offer trust administration services, and this can be the right choice for many families. As long as the program rules are followed to the letter, the trustee would be allowed to use assets in the trust to make … [Read more...] about How do you respond to these circumstances?
Everyone needs health insurance, but obviously, it is absolutely essential for people with disabilities that will need lifelong care that can be extremely expensive. The majority of Americans get their health care coverage through their jobs, but a significant percentage of people with disabilities cannot work. Paying for health care insurance out-of-pocket is simply not an option for most, but fortunately, a safety net exists in the form of the Medicaid program. People with disabilities … [Read more...] about What makes the situation so different?
It is very important to consider the life situation of every person that is on your inheritance list. The right way to transfer assets to one loved one may not be appropriate for the next. With this in mind, a person with special needs is in a very unique position from an estate planning perspective. … [Read more...] about Why is “special needs planning” different from standard estate planning?