As we age, many of us worry about the future of our loved ones when the time comes for us to pass away. Thinking about death isn’t easy, but couching it in terms of what it means for your loved ones can be even more challenging. Given this difficulty, far too many individuals choose to put off estate planning, which can lead to disastrous consequences, especially if you have a loved one who has special needs or requires specialized medical care. Passing a way without an estate plan could leave these individuals without the financial support they need to have stability and the ability to obtain the care they need.
By engaging in competent estate planning, though, you might be able to set your loved one up with both financial stability and appropriate medical care. One of the best ways to do this is to create a special needs trust. The benefits of this type of irrevocable trust are numerous. Perhaps the biggest amongst them is the fact that assets placed into a special needs trust are not counted as income when it comes to determining eligibility for government programs like Social Security disability, Supplemental Security Income, Medicaid, and Medicare. This means that your loved one can still use government resources to obtain care and treatment while relying on additional resources provided by you to cover other costs.
There are limitations on how special needs trust funds can be used, though. Generally speaking, these funds are used for transportation costs, medical expenses, and care-related costs that are not covered by government benefits.
This is just one estate planning tool that you can utilize to better position your loved ones for life without you. Although it can be challenging to broach the topic of estate planning, many people feel relieved once they finally take the steps necessary to create a holistic plan that meets their needs. If you could use a helping hand in these matters, then you may want to consider legal assistance.