Special needs trusts are like special savings accounts that can help families take care of a loved one with a disability. These trusts are important because they keep money safe for the future while also making sure the person with a disability can still get government help like Medicaid and SSI.
In addition to realizing the benefits of these trusts, families should understand how they work.
Protecting assets
Families can put money into a special needs trust to pay for things like medical care, therapy, education and housing for their loved one with a disability. Trustees manage this money to make sure funds go to the person’s needs. This helps prevent anyone from taking advantage of the person or misusing the money.
In addition to preventing financial abuse, a trustee should make sure that the beneficiary’s best interests are always the top priority.
Preserving benefits
The California Department of Healthcare Services says that special needs trusts can help people maintain public assistance eligibility. Since the money inside a trust does not count as the person’s own money, they can still get help from programs like Medicaid and SSI without losing their benefits. Families can also personalize the trust to meet their loved one’s specific needs. They can plan for long-term care, protect assets from creditors and ensure a smooth transfer of assets when needed.
If you have a family member with special needs, a special needs trust can help you create a comprehensive plan that prioritizes your loved one’s well-being and financial security for years to come.
