While visiting with a new client recently, we learned they had a special needs son, Danny. As you can imagine, we quickly steered a significant part of the conversation toward Danny and how to protect him now and for years to come. After all, his wonderful parents—as young and exuberant as they are now—will not be around forever, which raises all sorts of questions about who will care for Danny, how future care and services will be paid, and, perhaps more importantly, how his inheritance will be protected. 

This is where a Special Needs Trust can prove invaluable. Are you curious what the benefits are? Read more in today’s blog post.

First Things First: The Basics of a Special Needs Trust

A Special Needs Trust (also known as a Supplemental Needs Trust) is a legal tool designed to ensure your child with special needs remains eligible for government benefits (Supplemental Security Income and Medicaid) throughout their lifetime while still receiving supplemental support. The parents create this invaluable estate planning tool, which is 100% customized to the dependent with a disability’s needs. 

As any parent of a child with special needs is aware, these “needs” can run the gamut and include everything from daily therapy and special equipment to education, travel costs associated with medical appointments, housing, additional medical care, and recreation.

The benefits of a special needs trust are practically limitless. Here are a few that stand out the most:

1. Protection of government benefits — Programs such as SSI and Medicaid often have strict income and asset limits. By establishing a Special Needs Trust, their future inheritance and money used to pay for services not covered by government benefits will not be threatened or used as a disqualifying factor for needs-based government assistance. 
2. Supplemental support — As surprising as this may sound, government assistance is not all-encompassing. Many of the everyday needs mentioned above are out-of-pocket expenses. A Special Needs Trust provides those funds and ensures a better quality of life.
3. The ability to name a future care provider — As much as parents would love to take care of their children forever, it is simply not possible. When you create a Special Needs Trust, you name a trustee to manage the trust assets for the benefit of your child. Choose someone you know who cares about your child and who is willing to assume the responsibility of caring for them. This person should also be familiar with government benefits and how to navigate the system efficiently.
4. Creditor protection — Assets and funds held inside a carefully crafted Special Needs Trust are protected from creditors and lawsuits. This is a huge benefit, as it safeguards your child’s future moving forward.
5. Controlled distributions — If your child with special needs is vulnerable to financial abuse, your chosen trustee has the added power of controlling distributions to avoid these issues and other reckless spending concerns.
6. Customization — A Special Needs Trust can and should be tailored to the unique needs of the beneficiary. Specific language should be included to account for their healthcare needs, preferences, lifestyle choices, and more.
7. Peace of mind — You, as the parents, know moving forward that your child with special needs will be supported financially and personally moving forward, all without losing access to vital government benefits.

Call Leigh Hilton PLLC Today!

Flexibility in estate planning is important, especially when you have a child with special needs. Please call Leigh Hilton PLLC so that we can help ensure your family will be taken care of in the best way possible. Proper planning of an estate, whether through a Will, Trust, Special Needs Trust, or all three, helps ensure your family is cared for.

Leigh Hilton PLLC wants to be your first call every time for any estate planning need. We look forward to serving you.