When planning for a loved one with special needs, it’s important to ensure that they continue to receive the care and support they need without jeopardizing their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). One of the most effective ways to do this is by setting up a Special Needs Trust (SNT).
A special needs trust is a legal arrangement that allows you to set aside funds for the care of your loved one while preserving their eligibility for government benefits. Unlike traditional trusts, an SNT ensures that any assets or income in the trust do not count against the beneficiary’s eligibility for these programs.
There are two types of special needs trusts: first-party trusts and third-party trusts. A first-party trust is funded with assets that belong to the beneficiary, such as a personal injury settlement or inheritance. A third-party trust is funded by someone else, such as a parent or grandparent, and can be used to supplement the care and support of the beneficiary without affecting government benefits.
When setting up a special needs trust, it’s important to choose a trustee who is knowledgeable about the beneficiary’s needs and the legal requirements of the trust. The trustee will manage the funds in the trust and ensure that they are used for the benefit of the beneficiary.
At Great Lakes Estate Planning, we can help you set up a special needs trust that meets your loved one’s unique needs. Contact us today to schedule a Vision Meeting and ensure your loved one’s future is secure.