New Jersey residents who are taking the necessary step of creating an estate plan to prepare for the future are not all the same. Everyone has different circumstances that they need to account for. Those who have a disabled loved one will want to make sure that person is taken care of. One way to do this is by establishing a special needs trust.
Before moving forward with a special needs trust, it is important to understand how it works and if there are other strategies that might be more appropriate. Regardless, with any estate planning vehicle, having professional and experienced assistance can be key to a comprehensive document that works as planned.
Know how a special needs trust protects loved ones
With a special needs trust, the disabled person will have access to the funds left to them as part of the trust, but will also remain eligible for government programs including Medicaid. This can be crucial to fulfilling their needs. If the disabled person was left money and other assets instead of having a trust, there is a good chance they would no longer meet the income and assets requirement to continue getting benefits through a program like Medicaid.
The assets in the trust are not viewed as the disabled person’s property. Therefore, they can continue receiving Medicaid and help through various other programs. The special needs trust can also pay for items and treatment that is not covered by the governmental programs. For example, if the disabled person needs specific equipment to facilitate their care, needs transportation, or medical treatment that would not be paid for under their plan, the trust can cover for it.
Crafting a special needs trust can be complicated
While people are wise to seek help when they create an estate planning document like a will, it is something they can do themselves. A special needs trust is more complicated and should be fully understood with its construction, what it does, what it does not do, and how to move forward.
Those seeking to protect disabled loved one while not leaving them ineligible for government programs like Medicaid should know the value of a special needs trust. Consulting with those who have extensive experience with a wide variety of estate planning options can be helpful.