An Arizona special needs trust is distinctively set up for parents with special needs children. It is created to protect the assets, inheritance, or personal injury settlement money of the physically and mentally disabled beneficiaries. The special needs trust ensures that the child or beneficiary will be taken care in the event that the parents or guardian passes away. More importantly, this type of trust, when set up correctly allows the child or beneficiary continued access to government assistance in addition to their inheritance.
It is important that parents or guardians with special needs children have knowledge about the special needs trust, the benefits of having this type of a trust and the significant difference of having this trust in place compared to a living trust. Due to the stern laws and guidelines with government assistance for the disabled, it is important to have this trust in order. Not accurately planning and having correct legal documentation could result in the child’s government assistance being taken away.
It is imperative for parents and guardians to understand how this trust works and how important it is for children with special needs. Government assistance such as social security income or disability benefits and Medicaid is a “needs base” benefit. Government assistance primarily always falls short of covering all living expenses. Reliance on government assistance alone may not be in the best interest for your disabled child. There are limitations on what social security income can be used for and Medicaid does not necessarily cover all medical expenses. For this very reason, a special needs trust account is a necessary addition to cover daily living expenses and other necessary expenses social security falls short of.
In Arizona and throughout the country there various benefits that can be protected with a special needs trust. An Arizona special needs trust account primarily ensure that the special needs beneficiary continues to receive financial assistance from the government. This assistance is for general living expenses and other government assistance specific which can vary depending on the area.
For special needs beneficiaries residing in Arizona, a special needs trust will also ensure that the special needs child or beneficiary remains eligible for Arizona Health Care Cost Containment System (AHCCCS). AHCCCS is Arizona’s Medicaid program which is a needs based assistant program. People who have a higher income source may not qualify for these medical benefits. With proper planning and an Arizona special needs trust account in place, both AHCCCS and social security income benefits will be protected. Money from the Arizona special needs trust account will protect you child without adversely affecting them from a good quality of life.
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