When it comes to estate planning, choosing the appropriate tools, selecting suitable beneficiaries, and accurately preparing all necessary documents can be a complex and daunting task. This is especially the case when one of your intended beneficiaries relies on a government aid program. For example, suppose you plan on issuing an inheritance to a family member who relies on government aid programs. In that case, you may unknowingly impact that individual’s ability to continue benefiting from government aid programs. To avoid this, you may create a special needs trust to provide security to your loved one while ensuring you do not jeopardize their ability to benefit from a government aid program.
If you have a loved one you believe would benefit from creating a special needs trust, consider consulting with an experienced estate planning attorney with knowledge in creating special needs trusts.
Understanding Special Needs Trusts
Government aid programs like Medicare, Medicaid, Social Security Disability Benefits, and others are meant to protect the ongoing needs of people who have disabilities. A significant portion of some of these programs is contingent on that person’s financial need. Therefore, they look at their income and available resources when determining how best a program may help. Adding assets or property, whether large or even small, like a personal injury settlement or an inheritance, may cause a disabled person to exceed program aid limits and threaten their eligibility for such programs.
Ensuring Eligibility for Government Aid Programs is Maintained
To effectively preserve the disabled person’s eligibility for government aid programs, the trustee must only make acceptable allotments for dedicated purposes. Allowable distributions can be amounts for:
Personal items like clothes, shoes, and toiletries
Household items like furniture, appliances, and linens
Medical costs not covered by government programs
Other amenities that help assist the best interests of the beneficiary
Notably, someone can choose to draft a will and allow a provision for a special needs trust to be created if the need for one develops after the will was drafted. An experienced attorney can work to make sure all necessary paperwork is filled out accurately and can also help you choose a trustee or trustees if they are needed to manage a special needs trust on behalf of a disabled beneficiary.
Contact a DuPage County, IL Special Needs Trusts Attorney
The beauty of estate planning is granting yourself and your family peace of mind by preparing for the future. If you are interested in creating a special needs trust, do not hesitate to contact the experienced Arlington Heights special needs trusts lawyers with [[title]]. Call [[phone]] today for a complete consultation.