It is never easy to think about a time when you will no longer be around, especially if you have a child with special needs that relies on you. However, making these long-term plans is especially important in that situation. The right steps can ensure your loved one has the resources they need while still qualifying for vital government benefits.
If you are considering special needs estate planning in Riverhead, it is time to talk with an attorney. There are options that allow you to provide for loved ones in the future without interfering with their eligibility for Medicaid or other benefits. Let a dedicated estate planning attorney help you understand your options.
In most special needs estate plans, the creator can distribute property to their heirs as they see fit with limited negative consequences outside of possible tax obligations. However, the process becomes more complicated when one or more of those heirs have special needs.
Without appropriate special needs estate planning, the resources given to a loved one in Riverhead through probate court could impact their eligibility for government benefits, such as Medicaid or Supplemental Security Income, in the future.
Both Medicaid and SSI are needs-based programs, and anyone with substantial income or assets will not qualify. These programs offer significant financial benefits related to in-home and medical care, among other things.
Both of these needs-based government programs consider more than just income from a job or cash in the bank. Anything that could be converted into cash, including real estate or certain trust funds, will also be taken into account for eligibility. This means that what was meant to be a thoughtful gift could end up impacting your eligibility for benefits in the long run.
The primary tool that individuals in Riverhead use for special needs estate planning is a trust, a legal entity that holds ownership of a person’s assets. These trusts provide someone with financial support without making them ineligible for needs-based benefits.
These trusts are created with the goal of supplementing a person’s income while still allowing them to qualify for SSI or Medicaid. Different options for funding these trusts include:
A recipient of this type of trust must qualify as disabled according to Social Security Administration guidelines. They can be created for anyone, from minor children to adults.
There are strict limits on what these funds can be used for, as they are intended to supplement rather than replace government benefits. They cannot pay for expenses covered by SSI or Medicaid, such as housing or food. Instead, this money is intended for other expenses not covered by government benefits, like education, transportation, and recreational uses.
It is common for individuals and families to have questions about special needs estate planning in Riverhead. There are many choices to be made, and knowing how to proceed is not always easy.
The good news is that you do not have to manage these challenges on your own. A lawyer could help you navigate the process and ensure your loved one’s future is protected. During an initial consultation, they could explain your options and help you form a plan that meets your family’s needs. Reach out to Tully Law Group, PC, for a private consultation with a knowledgeable attorney.
