Do you have a loved one with a special medical condition that requires extensive care? If so, then you might find yourself worried about their future. This concern might be especially prevalent if you provide a significant amount of support to that individual. After all, once you’re gone, your loved one’s support system can be upended, and he or she might not be able to successfully navigate the challenges of their condition on their own.
A special needs trust can help
Fortunately, you can ensure long-term security for your loved one through a special needs trust. This type of revocable trust allows you to pass assets on to your loved one without those assets counting as income for the purposes of qualifying for government benefits like Medicaid and Supplemental Security Income. This means that your loved one can obtain financial stability from the trust while securing needed care and treatment for their condition from public programs.
Restrictions on how special needs trust assets can be used
Before creating a special needs trust, though, you have to understand some of their restrictions. One of the biggest is how your loved one can use assets that are placed into the trust. They can’t simply use those assets however they feel. That being said, the law does provide some flexibility. Therefore, trust assets can generally be used to purchase and maintain a primary residence for the individual, provide for personal items, and even purchase a vehicle and furniture. Just make sure you, your loved one, and your trust administrator are clear on the limitations placed on the use of trust assets before moving forward.
Create the individualized plan you need to suit your needs
We understand that it can be challenging to get motivated to engage in estate planning. However, doing so can relieve a huge burden from your shoulders and give you the peace of mind needed when it comes to ensuring that your loved ones are as fully protected as possible. If you’d like to learn more about what estate planning can do for you and your loved ones, consider reaching out to an attorney who is well-versed in this area of the law.