Barrow Law Group
TEL: 718.763.1010
Email: info@barrowlawgroup.com
- …
Barrow Law Group
TEL: 718.763.1010
Email: info@barrowlawgroup.com
- …
Special Needs Planning
Special needs planning is the planning that gives you peace of mind that a loved one with special needs will be cared for when you are no longer available to provide the care. A parent or guardian may leave assets for a child without disqualifying the child from receiving benefits through Medicaid or SSI. With proper planning assets left for a child with special needs are used to augment government benefits instead of being used in place of the government benefits. The assets may be used with the government benefits in place to provide clothing, education, real property, automobile, transportation, hobbies, technology, vacations and more.
There are two types of special needs trust that preserves Medicaid and SSI benefits: first party and third party. A first party trust is usually created for the benefit of a loved one by a parent, family member or guardian with the loved one’s assets (usually acquired by inheritance or by litigation award). All unused trust assets must be paid to the government to reimburse for the cost of care.
A third party trust is created by a parent, family member or guardian using their own assets for the benefit of a loved one. This trust does not require that the government be reimbursed for the cost of care. Instead, all unused trust assets at the demise of the beneficiary with special needs may be paid to another beneficiary designated by the creator of the trust.
These two trusts give parents, guardians, and family the peace of mind that their loved one will not lose the need based benefits. This specialized planning requires an experienced estate planner to ensure that the trust is properly designed to ensure that your loved ones continue to be Medicaid and SSI eligible.
ASK AUDRA !
Name *Email *Phone *Message *
Barrow Law Group © 2022 | info@barrowlawgroup.com | 718.763.1010