If you are thinking about setting up an estate plan, you have many different factors to go over. Whether you want to help your loved one set up an estate plan or you want to create a will or trust on your own behalf, you need to think about unique financial considerations. For example, some people have special needs, in which case a special needs trust could be very beneficial.
Before creating any type of estate plan, you need to prepare carefully and make sure that you take various factors into account, such as what happens to assets in the estate plan after death.
Setting up a special needs trust
According to the State of Indiana, people can create special needs trusts for those who have a disability in accordance with SSI guidelines. Sometimes, a legal guardian, parent or grandparent creates a special needs trust for a disabled individual, but those with special needs can create such a trust on their own, so long as they meet certain conditions.
In order to qualify, those with special needs must be under the age of 65. Moreover, after a disabled individual dies, the state will receive the remaining assets in his or her trust to cover Medicaid benefits they received, if applicable.
The advantages of special needs trusts
Special needs trusts offer a number of perks. In addition to providing families with peace of mind, they can help those with special needs remain eligible for crucial benefits. For example, those with a disability who depend on SSI or Medicaid could avoid losing eligibility for these programs, whereas they could become disqualified after receiving assets from another type of estate plan.
If you think setting up a special needs trust could help, do not hesitate to take a closer look at your options.