A special needs child will eventually grow up, but may still rely on important government programs and other forms of assistance to survive and thrive. Someone who has severe impairments may incur significant costs for health care, upwards of $100,000 per year.
Understanding Special Needs Trusts
Depending on the level of a person’s impairment, many families are unable to fund these services during their lives or even after their passing. It becomes extremely important to protect the rights of that disabled party to receive valuable government benefits, such as Medicaid. SSI and Medicaid recipients are allowed $2,000 in liquid assets and limited income, which means it can be a huge mistake to make an outright gift to a loved one who has special needs.
Setting Up a Special Needs Trust
Sheltering assets inside a special needs trust under the guidance of an experienced and knowledgeable estate planning lawyer can be one of the best ways to ensure that your loved one has access to necessary funds without obliterating their opportunity to receive critical government benefits too.
Working with Estate Lawyers in Massachusetts
The support of estate lawyers can be instrumental in answering many of the key questions associated with special needs trusts and ensuring that the right decisions have been made around how to proceed with special needs trust planning. If you and your loved ones have further questions, consider evaluating third party trusts versus first party trusts. An estate lawyer in MA can help you to clarify which is more appropriate for your individual situation.
