Special Needs Trusts
Families caring for a loved one with disabilities or special needs often face a difficult challenge: how to provide financial support without unintentionally jeopardizing eligibility for important government benefits.
Many public assistance programs — including Supplemental Security Income (“SSI”) and Medicaid — are means-tested programs with strict financial eligibility requirements. Even a modest inheritance or financial gift can sometimes disqualify a beneficiary from receiving benefits that are critical for medical care, housing assistance, and daily support.
A properly drafted Special Needs Trust can help protect a loved one's eligibility for these important benefits while still allowing trust assets to be used to enhance the beneficiary's quality of life.
At Scott and Scott, P.A., we assist families in designing estate plans intended to provide long-term financial security and peace of mind for beneficiaries with disabilities, chronic illnesses, mental health challenges, or other special needs.
What Is a Special Needs Trust?
A Special Needs Trust (sometimes called a Supplemental Needs Trust) is a specialized trust designed to hold assets for the benefit of an individual with disabilities without unnecessarily disqualifying that person from certain means-tested government assistance programs.
Depending upon the circumstances, trust funds may be used to supplement a beneficiary's quality of life by helping pay for items such as:
- Supplemental medical and dental care
- Therapies and rehabilitation services
- Educational expenses
- Transportation
- Personal care attendants
- Technology and communication devices
- Recreation and travel
- Other quality-of-life enhancements not covered by government programs
Individualized Planning Matters
Special needs planning is highly individualized. Different rules may apply depending upon the source of the assets, the beneficiary's age, family circumstances, and the specific government benefits involved.
Our firm works closely with families to develop practical, customized planning strategies designed to protect vulnerable beneficiaries while preserving as much flexibility and independence as possible.
If you would like to discuss Special Needs Trust planning for a loved one, please contact Scott and Scott, P.A. to schedule a consultation.
