SPECIAL NEEDS TRUSTS
What is a Special Needs Trust?
A Special Needs Trust (also called as Supplemental Needs Trust) is a tool that -- when properly created -- can protect the assets of an individual with special needs and ensure that the individual does not lose important government support due to having “too many” assets.
Very basically, when you establish a SNT for the benefit of your loved one with special needs, you place certain assets “into” the trust. At this point, the assets are “owned” by the trust for the benefit of your loved one.
In creating a trust, you must name a person (or entity) as the “trustee” of the trust. You may name yourself (and many parents often do) as the trustee or another person. In addition, you will name an alternate trustee to take over when you become unable to serve as trustee. The trustee’s “job” is to manage the trust’s assets according to the directions given by you in the trust.
Therefore, you should only name someone (or entity) in which you have complete trust and confidence. Doing so will provide you with important peace of mind and ensure that your loved one will continue to receive the care and assistance he or she needs.
Why does my loved one need a Special Needs Trust?
Families of persons (children and/or adults) with special needs are often faced with extra expenses, such as specialized-medical care and / or therapy services. I know this first hand because my son has Down syndrome.
Fortunately, people with special needs can qualify for governmental programs designed to help with these additional financial burdens. Primarily, a person with special needs will often qualify for Supplemental Security Income (SSI) and Medicaid. SSI provides qualifying persons a minimal monthly income. Medicaid, very basically, can provide vitally important health insurance and helps pays for certain medical services and, at times, it can assist with other services such as therapies, personal care attendants, transportation and housing.
These benefit programs can prove invaluable to individuals with special needs and their families. Eligibility for these programs, however, can be placed in jeopardy and even lost if the individual with special needs earns income or owns assets exceeding a certain amount. For example, one's Social Security Income (SSI) benefits can be lost / reduced when the person earns income greater than $735/month. Additionally and very importantly, a person's Medicaid benefits can be lost if the person owns or receives assets worth more than $2,000.
Therefore, it is vitally important that a person receiving Medicaid or SSI not jeopardize those benefits by receiving or owning "too much." By placing any assets into a property written SNT, the assets are not “counted against” the individual with special needs (because the Trust "owns" the property for the benefit of the individual), and he or she will not lose eligibility for government benefit programs. Very simply, a Special Needs Trust is an important way through which family members (and others) can provide money and/or other assets to help their loved while not jeopardizing the benefits the she/he needs.
A Special Needs Trust (also called as Supplemental Needs Trust) is a tool that -- when properly created -- can protect the assets of an individual with special needs and ensure that the individual does not lose important government support due to having “too many” assets.
Very basically, when you establish a SNT for the benefit of your loved one with special needs, you place certain assets “into” the trust. At this point, the assets are “owned” by the trust for the benefit of your loved one.
In creating a trust, you must name a person (or entity) as the “trustee” of the trust. You may name yourself (and many parents often do) as the trustee or another person. In addition, you will name an alternate trustee to take over when you become unable to serve as trustee. The trustee’s “job” is to manage the trust’s assets according to the directions given by you in the trust.
Therefore, you should only name someone (or entity) in which you have complete trust and confidence. Doing so will provide you with important peace of mind and ensure that your loved one will continue to receive the care and assistance he or she needs.
Why does my loved one need a Special Needs Trust?
Families of persons (children and/or adults) with special needs are often faced with extra expenses, such as specialized-medical care and / or therapy services. I know this first hand because my son has Down syndrome.
Fortunately, people with special needs can qualify for governmental programs designed to help with these additional financial burdens. Primarily, a person with special needs will often qualify for Supplemental Security Income (SSI) and Medicaid. SSI provides qualifying persons a minimal monthly income. Medicaid, very basically, can provide vitally important health insurance and helps pays for certain medical services and, at times, it can assist with other services such as therapies, personal care attendants, transportation and housing.
These benefit programs can prove invaluable to individuals with special needs and their families. Eligibility for these programs, however, can be placed in jeopardy and even lost if the individual with special needs earns income or owns assets exceeding a certain amount. For example, one's Social Security Income (SSI) benefits can be lost / reduced when the person earns income greater than $735/month. Additionally and very importantly, a person's Medicaid benefits can be lost if the person owns or receives assets worth more than $2,000.
Therefore, it is vitally important that a person receiving Medicaid or SSI not jeopardize those benefits by receiving or owning "too much." By placing any assets into a property written SNT, the assets are not “counted against” the individual with special needs (because the Trust "owns" the property for the benefit of the individual), and he or she will not lose eligibility for government benefit programs. Very simply, a Special Needs Trust is an important way through which family members (and others) can provide money and/or other assets to help their loved while not jeopardizing the benefits the she/he needs.