Approximately
1 in 6 children in the United States has some type of developmental disability. Some of these disabilities are mild and may be overcome, while others such as Intellectual Disabilities, Autism, Downs Syndrome and Cerebral Palsy are much more severe. Other disabilities could be a result of an injury or accident. No matter what their disability is, as a parent, you will want to ensure that your child is taken care of even when you are no longer here. A good way to do this is by setting up a special needs trust. Here are a few ways that such a trust will benefit your disabled child.
Taking care of a person with special needs can be very expensive. With increased medical care, medications, specialized equipment, supportive care and more, you may find that their cost of care mounts up quickly.
Fortunately, there are a couple of public assistance programs that may provide the financial resources needed to help pay for care. In California these two programs are Supplemental Security Income (SSI) and Medi-Cal.
Both programs have very strict income limits in which you and your child must remain under to qualify for and keep the keep the benefits. For example, to qualify for Medi-Cal and SSI you are not allowed to own more than $2,000 in assets with certain exclusions. This means that your child could easily be disqualified if they were to come into an accident settlement or large inheritance after your death.
By setting up a special needs trust, you will be able to preserve their inheritance while keeping them eligible for benefits. The trust can supplement their care by paying for care and items above and beyond what they will be able to receive through Medi-Cal or SSI.
Even mild developmental disabilities can sometimes impact a person's ability to make sound decisions and unfortunately, there are sometimes predators who will try to lead them astray. By creating a special needs trust, you will remove the person's control over their total amount of funds.
Their bills can be paid, their needs can be met, and a small monthly allotment can be disbursed by the trust. Any additional expenditures will have to approved by the Trustee. This type of control will make the person less likely to be victimized by people looking to prey on them.
Some disabling conditions may get more severe as time goes on. This means that although your child may not need SSI or Medi-Cal at this point in time, it does not mean they will not need it in the future.
By setting up a special needs trust now, you do not have to worry about your child qualifying later or having to dispose of their assets through a spend down. The trust will preserve financial resources to meet their future needs.
If your child does not end up needing government benefits in the future, all is not lost. You can always include specific instructions for the Trustee to terminate the trust at a later date.
Not all special needs trusts are the same. Some are designed to just hold assets that belong to the beneficiaries, while others are designed to hold assets that have been donated to the beneficiary by others.
The Law Office Of
Carla D Allen understands the difference in special needs trust, as well as other trusts you may benefit from. We can help you set up the best one to meet your needs. Give us a call so we can help you get started.
