When setting up an estate plan, one aspect to consider for those with disabled family members is this: What benefits are they getting?

There’s a great reason to ask the question.

If you leave a large lump sum for a disabled family member, it could disqualify them from receiving particular benefits, such as Medicaid, Supplemental Security Income, and more, because the income impacts eligibility for the government benefits.

An example of this would be someone who receives a lump sum of an inheritance. That could cause assets to rise all at once, which would preclude your loved one from gaining access to the programs and funds necessary because the government thinks he/she is more well off than they actually are.

That’s where a special needs trust comes in handy. These trusts are in your control – not the one to whom you’re giving it to – and thus, don’t count against them when it comes to being eligible for government benefits. These are typically referred to as special needs trusts, because they’re intended to help those with disabilities.

It takes excellent planning to think through details like these – but we specialize in trusts, especially special needs trusts. You can read more information about special needs planning here.