Three Ways a Special Needs Trust May Benefit Your Family

 Posted on September 11, 2023 in Estate Planning

Caring for a loved one with special needs requires careful financial and estate planning. Special needs trust is one powerful tool that can provide peace of mind for families. This legal arrangement helps protect the financial security of individuals with disabilities, ensuring they receive the necessary support while preserving eligibility for government assistance programs. If you have a family member with special needs and are looking to protect their financial future, contact an estate planning attorney to begin the process of setting up a special needs trust.

Here Are Three Reasons Why Special Needs Trusts Are Important

1. Preserving eligibility for government benefits - One of the most significant advantages of an Illinois special needs trust is that it allows individuals with disabilities to maintain eligibility for government assistance programs, such as Supplemental Security Income (SSI) and Medicaid. These programs often have strict income and asset limits, which, if exceeded, can result in the loss of critical benefits. By placing funds in a special needs trust, the assets are not considered as the beneficiary’s own, thus safeguarding their eligibility for these essential programs.
2. Ensuring a lifetime of financial support – A special needs trust provides a lifetime of financial security for your loved one with special needs. The trust can be designed to supplement government benefits by covering additional expenses, such as medical care, therapy, education, transportation, and recreational activities. This ensures that your loved one’s quality of life is not compromised due to limited financial resources. Moreover, the trust can be managed by a trustee, who will distribute the funds according to your specific instructions, ensuring that your loved one’s needs are met even when you are no longer able to provide support.
3. Protecting inheritance and family assets – A special needs trust also safeguards the inheritance and family assets intended for the individual with special needs. Without proper planning, a direct inheritance may disqualify your loved one from government benefits or lead to misuse of funds. By establishing a trust, you can designate how the funds should be used and who will manage them, ensuring that your loved one receives the necessary support and that the assets are protected from creditors, lawsuits, and potential financial exploitation.

Contact a Wheaton, IL Estate Planning Lawyer

For legal representation in creating a special needs trust for a loved one, contact the experienced DuPage County estate planning attorneys with A. Traub & Associates. Call 630-426-0196 for a private consultation.