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Special Needs Planning

Special Needs Planning

If you currently provide care for a child or loved one with special needs (such as mental or physical disabilities), you must have contemplated what may happen to him or her when you are no longer able to serve as the caretaker.

While you can certainly plan for them to receive money and assets upon your passing, such a bequest may prevent them from qualifying for essential benefits under the Supplemental Security Income (SSI) and Medicaid programs. If you do not leave them any assets, the benefits provided by these and other programs are generally limited to the bare necessities such as food, housing and clothing. As you can imagine, these limited benefits will not provide the resources that would allow your loved one to enjoy a richer quality of life. Fortunately, the government has established rules allowing assets of the individual with special needs to be held in trust, called a “Special Needs” or “Supplemental Needs” Trust without resulting in disqualification for SSI and Medicaid, as long as certain requirements are met.
 
At the law office of Joan A. Watters, we can help you set up a Special Needs Trust so that government benefit eligibility is preserved, while at the same time providing assets that will meet the supplemental needs of the person with a disability (those that go beyond food, shelter, and clothing and the medical and long term support and services of Medicaid). The Special Needs Trust can fund those additional needs. In fact, the Special Needs Trust must be designed specifically to supplement, not replace public benefits. Parents should be aware that funds from the trust cannot be distributed directly to the disabled beneficiary. Instead, it must be disbursed to third parties who provide goods and services for use and enjoyment by the disabled beneficiary.
 
The Special Needs Trust can be used for a variety of life-enhancing expenditures without compromising your loved one’s eligibility such as:

  • Annual check-ups at an independent medical facility
  • Attendance of religious services
  • Supplemental education and tutoring
  • Out-of-pocket medical and dental expenses
  • Transportation (including purchase of a vehicle)
  • Maintenance of vehicles
  • Purchase materials for a hobby or recreation activity
  • Funds for trips or vacations
  • Funds for entertainment such as movies, shows or ballgames.
  • Purchase of goods and services that add pleasure and quality to life. This may include computers, videos, furniture or electronics.
  • Athletic training or competitions
  • Special dietary needs
  • Personal care attendant or escort     

Special Needs Trusts are a critical component of your estate planning if you have disabled beneficiaries for whom you wish to provide after your passing. Generally, Special Needs Trusts are either stand alone trusts funded with a separate asset like a life insurance policy, or they can be structured as a sub-trust in your existing living trust.
 


Located in Visalia CA, Joan A. Watters, Esq. Attorney at Law assists clients throughout the Central Valley of California with various estate planning and elder law. Areas include but are not limited to Visalia, Exeter, Tulare, Hanford, Bakersfield, Lemoore, Three Rivers; and the surrounding counties of Tulare, Kings, and Kern.



© 2017 Joan A. Watters, Esq., Attorney at Law | Disclaimer
220 South Mooney Blvd., B, Visalia, CA 93291
| Phone: 559-635-1775 | 800-403-5029

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