Planning For A Secure Future

How a special needs trust is a form of long-term care planning

On Behalf of | May 17, 2024 | Trusts

Planning for a loved one’s long-term care can be overwhelming. However, the process can get more complicated and demanding if you are planning long-term care for a loved one with special needs.

In cases like these, one crucial tool you may consider is a special needs trust (SNT). What is it, and how is it a form of long-term care planning?

Understanding the goal of SNT

The goal of a special needs trust is to manage financial resources for a person with disabilities without jeopardizing their eligibility for government assistance programs, such as Medicaid or Supplemental Security Income (SSI).

So, how does it connect to planning for long-term care?

  • Fund resource management: An SNT can hold money or property intended to enhance the quality of life for the individual with special needs. This can include funds for current and future needs, including personal care attendants, out-of-pocket medical expenses, education, travel and recreation.
  • Public benefits eligibility preservation: If an individual with disability directly holds funds, it could disqualify them from receiving government assistance benefits. SNTs allow your loved one with disability become a beneficiary of the trust’s assets without affecting their eligibility for grants. This helps ensure their financial security now and in the future.
  • Preparing for future needs: By funding the trust, you can help ensure that your loved one with special needs will have the resources they need over the long term, even when family support may no longer be available.

Planning for long-term care for a loved one with special needs requires careful consideration and preparation to address their unique circumstances.

If you are considering a special needs trust for yourself or your loved one, it is advisable to consult with a legal professional who specializes in establishing trusts to ensure that it meets the specific needs of the beneficiary and complies with relevant laws and regulations.