A: You may very well need to! Special Needs Trusts are usualy designed to supplement, but not supplant, the means-based government assistance and benefits that your loved one is receiving! The language of the SNT establishes that the trust funds are to be used only for specific purposes to improve the beneficiary’s quality of life, such as caretaker services, “non-countable assets” like a primary residence or car, fitness equipment, yard care, etc. Most means-based assistance programs require the recipient to have under $2,000 of cash to their name, which is why is so important to re-rout the inheritance into the SNT, which is not considered an asset of the SNT beneficiary. If you want to maximize your special needs beneficiary’s quality of life and continued ability to qualify for assistance, make sure you ask your favorite estate planning attorney about the possibility of creating a special needs trust!
Q: Should I create a special needs trust for my child who is receiving government benefits?
- Q: I was adopted when I was 2 years old and I just found out my biological father died without a will. Am I entitled to any portion of his estate now?
- Q: I have been living with my girlfriend for 24 years, but we’ve never gotten officially married. Will my assets automatically pass to her upon my death?
- Q: How is having a living trust like using GPS on your phone to drive somewhere you’ve never been to?
- Q: Should I create a special needs trust for my child who is receiving government benefits?
- Q: Do I still need an Estate Planning Attorney if I only have one child and everyone knows everything gets left to them?