First-party special needs trust
Types of special needs trusts
Why you may need a Special Needs Trust
If you have a child or other family member living with a disability, it’s crucial to make sure that your estate plan does not jeopardize the disabled person’s eligibility for government benefits, such as Medicaid and SSI. Leaving an inheritance to a Special Needs Trust or Supplemental Needs Trust rather than directly to a child living with disabilities can ensure that your assets are available to be used for the benefit of the child while protecting his or her right to receive Medicaid or other government benefits. If parents set up a Special Needs Trust during their lives for their disabled child, the trust can receive not only money or property from the parents’ estates but also bequests and devises from other family members. Any person with a family member receiving Social Security Disability should talk with an Elder Law Attorney about the possibility of including a Special Needs Trust or Supplemental Needs Trust in their estate plan.
Special Needs Trusts are also useful tools to protect a disabled person’s assets if they receive a court settlement, such as from a medical malpractice lawsuit, or if they receive an inheritance directly from a family member. Elderly parents or grandparents in nursing home care may be able to qualify for Medicaid to pay for their care by transferring their assets to a Special Needs Trust for the benefit of a disabled child or grandchild.
Types of special needs trusts
- Pooled special needs trust
- Third-party special needs trust
- Pooled special needs trust
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Raleigh Elder Law Attorney Amanda Spence has been helping clients set up and administer Special Needs Trust and Supplemental Needs Trusts in North Carolina since 1995. Give her a call at 919-863-4183 if you’d like to discuss how a Special Needs Trust can benefit you or your family member living with a disability.