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There is no question that you would do anything to protect your child. You think about his future day and night. You want to make sure that you have a proper plan in place to provide for him when you are no longer able to care for him yourself. When planning for your child with special needs, you must create a plan that not only meets your financial objective to provide for your child, but does so in a manner so as to secure the beneficiary’s present government benefits, as well as potential future benefits.
Careful attention must be paid as to how your plan will impact Government Benefits such as Supplemental Security Income (SSI) and Medicaid. Leaving your assets in a Special Needs Trust is a protective way to ensure financial stability without adversely affecting your child’s eligibility for programs, such as Medicaid or SSI.
You can create this Special Needs Trust by incorporating it in your Last Will and Testament or you can create a Living Trust, which may be funded during your lifetime. The assets and income in the trust can be used for benefit of your child. There is no pay-back to Medicaid upon your child’s demise.
Establishing a Third-Party Special Needs Trust is a safe and effective way to provide for your child with special needs. As with any recommendation, it is important to take a global approach, including consulting with a special needs attorney, as well as your financial planner.