Special needs trusts and their impact on government benefits

Special needs trusts help families provide long-term care for loved ones with disabilities. These trusts ensure beneficiaries get the support they need without losing government benefits. In Massachusetts, special needs trusts are important for securing a better future for people with disabilities.

Protecting government benefits

Government benefits like Medicaid and Supplemental Security Income (SSI) are crucial for people with disabilities. These benefits often depend on income and asset limits. A special needs trust holds assets for the beneficiary without giving them direct access. This ensures their eligibility for these programs.

Types of special needs trusts

There are two main types of special needs trusts: first-party and third-party trusts. First-party trusts use the beneficiary’s own assets, like an inheritance or personal injury settlement. Third-party trusts are funded by family members or other people. Both types ensure the beneficiary can access funds for care and expenses not covered by government benefits.

Ensuring long-term care

Special needs trusts cover many expenses, including medical care, education, transportation, and recreational activities. These trusts provide funds for services and items that improve the beneficiary’s quality of life. These services include home modifications, personal care attendants, and therapy. By covering these extra expenses, special needs trusts ensure complete long-term care.

Choosing a trustee

Selecting a reliable trustee is essential. The trustee manages the trust, makes decisions about distributions, and ensures the funds are used correctly. A responsible trustee understands the beneficiary’s needs and follows the trust’s rules.

Special needs trusts give families peace of mind by ensuring their loved ones with disabilities get long-term care and support. These trusts protect government benefits and provide financial security, allowing beneficiaries to lead fulfilling lives.