We are going to explain how the trustee can use the funds in a special needs trust in this post. But before we focus on this particular detail, we will provide a broader overview so you understand why these trusts are utilized. Preservation of Government Benefit Eligibility Let’s say that you have a person with a disability in the family, and you want to leave them an inheritance. This individual relies on Medicaid for much-needed health insurance, and they receive a monthly stream of income … [Read more...] about What Are the Special Needs Trust Spending Guidelines?
supplemental needs trusts
There are some misconceptions about the government disability programs that carry similar sounding acronyms. In this post, we will explain the distinctions between SSDI and SSI. Social Security Disability Insurance (SSDI) When you earn income, you pay self-employment or payroll taxes that go toward future eligibility for government benefits for seniors. There is a retirement credit system that is utilized for standardization purposes. During the current calendar year, you get one credit for … [Read more...] about SSI vs. SSDI: Are There Any Differences?
In our last post, we looked at three different scenarios that can be addressed through the utilization of some type of trust, and we promised to provide a follow-up. Let’s look at three more objectives that a trust can effectively satisfy. Special Needs Planning A significant percentage of people with disabilities qualify for Medicaid and Supplemental Security Income (SSI). These are need-based programs, so they are only available to people very limited monetary resources. If you intend to … [Read more...] about A Trust Can Be Used to Satisfy These Three Objectives (Part 2)
There are pointed approaches that can be taken to address every type of inheritance planning challenge. With this in mind, when you are planning your estate, you should consider the life situation of every person on your inheritance list. A perfectly acceptable way to transfer assets to one person may not be appropriate for the next, and this definitely applies to an inheritance that you want to leave to a person with a disability. Need-Based Government Benefits Most Americans get insurance … [Read more...] about What Is a Supplemental Needs Trust?
It is important to choose the right estate planning device for each person on your inheritance list. There are many different tools in the estate planning toolkit, and so you should discuss your options with a licensed estate planning attorney if you are not sure how to proceed. With this in mind, let’s look at inheritance planning for people with disabilities. Need-Based Government Benefits Obviously, people with disabilities need health insurance, but many people that are in this position … [Read more...] about Can I Fund My Own Special Needs Trust?
The best way to plan your estate will depend on the exact circumstances. You may see websites that advertise do-it-yourself estate planning. DIY estate planning doesn't make sense to many who are informed, because a layperson is not going to be aware of every relevant factor. This comes into play when you have someone with special-needs on your inheritance list. Government Benefits A high percentage of people with disabilities are enrolled in government benefit programs, such as Medicaid and … [Read more...] about What Is a Supplemental Needs Trust?