by Tenielle Shellman, Manager – Central Planning, Wealth Enhancement Group

Many families go through the painful experience of seeing someone they love face life with a disability. Whether you are the parent of a child with a disability or other relative, you want to be sure that the interests of your loved one are being met. This is true after the parent or guardian passes away, as well. But, how can you provide for your child or loved one upon your death with out jeopardizing their ability to receive crucial government assistance that they may qualify for?

In order to preserve the eligibility for government assistance programs like Supplemental Security Income (SSI) and Medicaid, a Special Needs Trust is often created. A special needs trust allows family members to provide some benefit to a disabled child or relative through the discretion of an appointed trustee for certain expenses. It is typically established and funded upon the death of the grantor, such as a parent, grandparent or relative of the disabled individual. In addition, a special needs trust can be set up in a way to address the specific needs of the disabled beneficiary and is not subject to creditors or seizure.

Special needs trusts are complex instruments. When establishing a special needs trust, care should be taken to ensure that the trust is structured properly to provide the greatest possible coordination between income generated from the trust assets and any and all possible governmental aid that is available. A qualified and experienced attorney specializing in Special Needs Trusts should be used when drafting one of these instruments.

Please contact the Wealth Enhancement Group team if you would like to discuss your particular special needs situation.