Special Needs Planning
How can I leave assets to a disabled child without disqualifying them from state and federal benefits?
If assets are left to a disabled beneficiary, it could disqualify them from state and federal benefits they are receiving. To address this, Congress enacted laws that allowed disabled individuals to receive the same estate planning benefits as non-disabled individuals without compromising their eligibility for state or federal benefits by using special trusts.
Supplemental Needs Trusts (sometimes called Special Needs Trusts) were created to enable you to leave any amount of money to a loved one who has special needs without disqualifying them from the state or federal benefits.
The law provides that the trust assets must be used to provide luxuries for the disabled individual he or she would not otherwise receive under the state and federal programs.
A Supplemental Needs Trust can be created by disabled individuals with their own funds or by someone other than the disabled individual (usually a parent or relative). There are different rights and restrictions to each of these trusts.
Please contact Frederick, Maryland Estate Planning lawyer, Lena Clark, to assist you with your estate planning needs.
We publish this information for general information purposes only; it is not legal advice and is not a substitute for consulting an attorney.
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