Families with a special needs child are becoming more and more common. Many of these children will receive government benefits when they are older. Some Massachusetts parents may wish to leave a special needs child some kind of inheritance after they pass. However, leaving large amounts of money for these individuals may not be the best course of action. Instead, families may wish to consider setting up a special needs trust.
If a person who has been diagnosed with special needs is receiving government benefits, they could potentially lose those benefits if they are given an inheritance. This is because these benefits are often need-based, and there is a limit to how much money they can have access to while receiving aid. Once these benefits are lost, it can be very difficult to regain them.
Over the years, families have handled the subject of inheritance and special needs individuals in a variety of different ways. Some parents choose to disinherit their child and allow them to live solely on the government benefits. Others leave convertible assets or hope that other sibling will care for their special needs family member. However, setting up a special needs trust can help in a different way. The trust can be set up so that it supplements the funds received through government programs like Medicaid or Social Security.
There are a variety of things that parents can do to prepare for the future of their special needs child. A special needs trust is only one of the options available. People living in Massachusetts who wish to find out more about trusts could benefit from speaking with an attorney. Lawyers can also help their clients to clarify any special instructions they feel are necessary to ensure that their special needs family members are cared for.
Source: cbsnews.com, ““Special needs” people need special financial planning“, Ed Leefeldt, Dec. 25, 2017