Supplemental needs trusts are a type of specials needs trust that can be created to benefit individuals with mental or physical handicaps. Like the name implies, a supplemental needs trust is used to supplement income the disabled individual otherwise receives, usually from Medicaid. A special needs trust usually holds assets from inheritance or from a windfall, such as a personal injury settlement or verdict.
Supplemental needs trusts are funded by a third party, such as a parent or a grandparent, and not by the beneficiary. The reason that people use supplemental trusts is that assets held in the trust are not considered assets of the beneficiary. By keeping the assets of the trust and beneficiary separate, a supplemental needs trust can help ensure that that a disabled person’s needs are met, while still maintaining eligibility for government benefits.
Supplemental needs trust lawyers help individuals create estate plans that will benefit a disabled person who likely already receives disability money from Medicaid. These lawyers work with individuals and families every day who are concerned their child, close family member, or close friend who suffers from a disability will not have enough money to live comfortably without additional help. Supplemental needs trust lawyers are highly aware of the sensitive needs of their clients, and work efficiently and with purpose to calm their stress and worry regarding their future.
The stress and uneasiness people have about money is compounded when a family is has an individual with special needs. Although the U.S. government has put in place systems like Medicaid to ensure those with special needs are not left to fend for themselves, the amount of money these backup systems usually provide is insufficient to cover living expenses.
If you want to make sure a disabled individual can sustain a healthy life without having to be 100 percent reliant on government benefits, then a supplemental needs trust may be a great option. It is important to speak with a supplemental needs trust attorney right away. Your attorney will help you create an estate plan that will ensure the disabled individual can live comfortably. The earlier you get started, the earlier you can create financial goals and possibly take advantage of the tax breaks you may receive by utilizing a supplemental needs trust. Use LawInfo to find supplemental needs trust attorneys in your area today.
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