Recently I’ve been meeting quite a few families here in Gilbert, Arizona with one big question; “I have a special needs child. Why would I need a special needs living trust?” When it comes to the legalities of a living trust vs government benefits for a special needs child, things can get complicated and confusing. The last thing that you want to do is risk your child’s future in the event that you can’t take care of them anymore. Even as adults, special needs individuals need a whole different set of standards for care, and a special needs trust can assure you that they will still be able to live a full life.

“Special needs trusts can provide benefits to, and protect the assets of, the physically disabled or mentally disabled. Special needs trusts are frequently used to receive an inheritance or personal injury settlement proceeds on behalf of a disabled person or are founded from the proceeds of compensation for criminal injuries, litigation or insurance settlements.”

A special needs trust, also known as a supplemental needs trust, protects your loved ones in the event that you cannot provide for them anymore. For the purpose of qualifying for certain governmental benefits, all assets of the special needs individual are taken into account. If those assets restrict them from qualifying from government benefits, they will be left with only those assets to support them when you are no longer around. And in most cases, the assets that you are able to leave that special needs child will not even come close to covering all of their costs to keep them above poverty.

Likewise, if you are not able to leave your special needs child any assets, including your estate, they will be left to live off of government benefits alone. Unfortunately, those government benefits will not keep them above the poverty line either.

A special needs trust can help secure government benefits as well as any assets or trust that has been left in their name. In a properly drafted special needs living trust, one that is written accurately by a highly experience legal preparer or attorney, those assets that you leave your child will not be considered “countable assets for purposes of qualification for governmental benefits.”

According to the law, a Supplemental Needs Trust can be used for “supplemental and extra care over and above what the government provides.”

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