If you are the primary caregiver of a loved one with a disability, it's vital that you set up a special needs trust as soon as possible. A special needs trust is designed to be a holding fund for money or assets left to individuals with disabilities. The trust preserves the ability of disabled people to receive supplemental government benefits such as Medicaid or Social Security. While you may believe that your will is sufficient enough to account for any money you plan to leave a disabled beneficiary, use this information to learn why you should set up a special needs trust as soon as possible.
A Special Needs Trust Protects Their Quality Of Life
One of the top concerns that many people have is fears concerning what will happen to their disabled loved one if they happen to become incapacitated or deceased. You may wonder if your loved one will continue to receive the same quality of life that they enjoyed when you cared for them.
While you can certainly make provisions in your will, this may not be the right approach. If you were to perish while still having outstanding debts, the money in your estate could easily be eaten up by creditors. Taxes are another matter, since they can also take a sizable portion of any money that you leave behind.
The care that you give to a disabled loved one doesn't have to end after you are deceased. Setting up a special needs trust makes that money untouchable. You can leave an amendment in your will that outlines whether the money should be used to place your loved one into a residential home, or if they should have at-home nurses to care for them. This will give you tremendous peace of mind and protect your loved one's quality of life.
A Special Needs Trust Helps Maintain Government Benefits
You don't have to be a millionaire to set up a special needs trust. You may have a relatively small amount of money to leave to your loved one that is designed to work in conjunction with governmental benefits. However, if you simply leave the money to your beneficiary in your will, it can be included as income and make your loved one ineligible to receive government benefits.
Don't take the risk of leaving your loved one without the governmental benefits that they need. Leave their money in a special needs trust so that it will not be counted as income and your family member can continue receiving their benefits.
An estate lawyer is a great resource that can help you get started with a special needs trust. Contact one of these legal professionals like one from Life's Plan Inc to discuss your trust options as soon as possible.