There are a number of things you can do with a trust, from avoiding probate and minimizing estate taxes to protecting your assets from creditors and leaving inheritance incentives for your kids.
But what about providing for a disabled dependent? Can a trust do that too?
The answer is yes.
A Special Needs Trust is designed specifically to help you provide for a disabled dependent without disqualifying him or her from important government assistance programs.
These government programs – such as Social Security and Medicaid – are based on need, so the applicant’s financial status is a big factor in qualifying for benefits. If you leave a large inheritance to this dependent, their financial status is affected and they could be disqualified from the program.
But with a Special Needs Trust, the assets are held within the trust, not individually by the dependent. And while the government assistance programs continue to provide for basic necessities, your Special Needs Trust can provide for just about everything else, including clothing, entertainment, travel, medical expenses and education.
To learn more about setting up a Special Needs Trust for your dependent, give us a call today.