If you have a loved one with special needs, you likely have various concerns regarding their well-being, especially when it comes to their future. From their ability to receive the care that they count on to their ability to retain eligibility for critical government benefits, understand the role your estate plan will play in their future. For some people, special needs trusts offer multiple perks and help ensure that disabled loved ones receive the support they need down the road.
Before setting up a special needs trust, go over the requirements and consider discussing this option with your family members.
An overview of special needs trusts
Pennsylvania’s Department of Human Services published a helpful fact sheet on special needs trusts. According to DHS, special needs trusts allow disabled beneficiaries to remain eligible for critical benefits such as medical assistance. However, disbursements from these trusts must solely benefit the trust’s beneficiary. Moreover, people cannot set up special needs trusts for beneficiaries over the age of 65.
Other estate planning options for disabled loved ones
In addition to special needs trusts, people have other estate planning options for loved ones with a disability. For example, supplemental needs trusts, educational trusts and pooled trusts also help many disabled individuals. It is important to review all of your estate planning options and carefully compare the pros and cons of each type of estate plan in order to identify one that that serves the needs of your disabled family member. When it comes to estate planning and special needs, people have unique circumstances that necessitate an individualized approach.