When creating your estate plan, you have the opportunity to provide support to your loved ones. However, if one of your loved ones relies on disability benefits, you may need to take additional steps to ensure that your plan addresses those needs. How can your estate plan provide for your loved ones
A will may not be the best fit for your situation.
To qualify for benefits from some government programs like Medicaid or Supplemental Security Income (SSI), a person must meet specific income and asset limits. Unfortunately, this means that directly receiving an inheritance — as they would if you only used a will to build your estate plan — could put them over the limit for eligibility. This may endanger their access to these benefits.
Considering all of your options can be key.
Thankfully, there are estate planning options that can help you provide for your loved one while also protecting their access to these benefits. One especially important option to consider is a trust. Because assets placed in trust belong to the trust itself, those assets will not count toward asset limits and will not impact their access to benefits.
However, the assets you place in trust can improve your loved one’s quality of life in many different ways. By funding a trust for your loved one, you can provide money for medical expenses, transportation, a comfortable home and a rich life filled with activities.
Providing for a loved one with special needs may require additional consideration during the estate planning process. Thankfully, it is possible to create a plan that protects and provides for all of your loved ones.