Should an individual with special needs receive a large sum of money, it is often wise to have the individual or his/her fiduciary establish a special needs trust in order to not jeopardize assistance already being received such as Medicaid or SSI. Should a parent or grandparent wish to provide funds to a special needs individual and not jeopardize assistance being received, a special needs trust may also be a good idea. However, before embarking on such an endeavor, it is critical to understand the different types of special needs trusts and their requirements or else risk losing the benefits already being received.
Set Up Special Needs Trusts To Protect Existing SSI Or Medicaid Benefits
The most common special needs trust created by and with assets of a third party is known as a discretionary “supplemental needs” trust. With such a trust, there is no requirement that funds be turned over to the state upon the death of the beneficiary. However, proper drafting is critical. It is to be used for things not covered by Medicaid or SSI. It must clearly state that it cannot be used for medical care, comfort, maintenance, health, welfare or general well-being. It should … Read More... “Special Needs Trusts in Ohio in a Nutshell”