Special needs trusts (SNTs) are crucial tools in estate planning for families with a disabled loved one.
They help protect government benefits like Medicaid and Supplemental Security Income (SSI) by ensuring that assets are managed without disqualifying the individual from receiving essential assistance.
Protecting government benefits
Individuals who receive Medicaid or SSI must meet strict income and asset limits. Without a special needs trust, receiving a large inheritance or financial support could disqualify the person from these benefits. A special needs trust allows parents or guardians to provide for their loved ones without jeopardizing access to these critical resources.
Managing assets for supplemental needs
SNTs provide for the beneficiary’s needs beyond what government programs cover. You can use these trusts to pay for medical treatments, personal care, education, or other services that improve the individual’s quality of life. Because the trust manages the assets, it does not count toward the income or asset limits set by Medicaid or SSI.
Retaining control and flexibility
Families in Georgia often worry about who will care for their loved ones when they are no longer able to do so. A special needs trust allows parents or guardians to designate a trustee who will manage the funds and ensure that the beneficiary’s needs are met. This arrangement gives families peace of mind that their loved ones will continue to receive the care they need.
Preserving long-term financial security
Establishing a special needs trust also protects the beneficiary from financial risks, such as mismanagement of funds or claims from creditors. This ensures the trust assets remain available for the beneficiary’s needs throughout their lifetime, providing long-term security.
Using a special needs trust ensures that individuals with disabilities in Georgia can maintain their government benefits while receiving financial support from their families.