The Importance of a Special Needs Trust

Did you know that if you have a physically or mentally disabled child, they cannot receive an inheritance in excess of $2,000 without negating their eligibility for government healthcare benefits such as supplemental security income and Medicaid? That is why families in this position should look into a special needs trust, and the team at American Settlement Corporation can help them with it.
Also known as a supplemental needs trust, a special needs trust is a provision that provides supplementary, long-term care to the named beneficiary through unlimited assets above and beyond what the government contributes. It outlines what property should be left to the trust since assets are not left directly to the beneficiary in order to circumvent potential issues.

Without a special needs trust in place, the beneficiary would receive only governmental benefits, which is typically considered living below the poverty level. Rehabilitation, compensation for personal care attendants, out-of-pocket medical expenses, treatments not covered by government benefits, and legal fees are all common uses for the trust’s funds. It can also pay for education, vehicles, homes, recreation, and vacations. Anything that creates a better quality of life for the beneficiary is fair game with a special needs trust.