Millions of Americans have disabled
family members. The cause may be Down's Syndrome, schizophrenia,
cerebral palsy, autism, or countless other physical
or mental illnesses.
Even if you don't have a disabled family member, you
know many individuals who do. Mental and physical problems
do not discriminate against particular racial or socio-economic
groups.
If you have a child, in particular, who is disabled,
or if you know someone who does, you simply must know
about Special Needs Trusts. These trusts are designed
to hold assets for the benefit of an individual who
is receiving public benefits and to help that person
without disturbing eligibility.
If the person is receiving Supplemental Security Income
(SSI) or Medi-Cal, they would continue to do so. If
they are in subsidized housing, they would continue
to live there.
Why use the Special Needs Trust for a disabled
individual?
- The disabled beneficiary will keep his/her income
(SSI) and health care (Medi-Cal) benefits.
- Money in the trust can be used to pay for items
and services not covered by public benefits
- Money in the trust can be used to pay for a doctor
who will not accept Medi-Cal.
- Parents control where trust assets go after the
child is deceased.
The only alternatives to the Special Needs Trust are
(1) leaving nothing to the child; or (2) leaving money
in trust that does not have these restrictions. This
latter course of action will cause the loss of public
benefits. After the assets are consumed, the child
will go back on public benefits. In planning these
trusts, there are tax and family issues to address.
We have decades of experience in dealing with these
issues. Special Needs Trusts drafted by Gilfix &
La Poll Associates LLP are consistently effective and
withstand scrutiny by public benefits programs.
Note: This article provides information,
it does not constitute legal advice.
Gilfix & La Poll Associates LLP attorneys
practice elder law and estate planning and are available
to answer any questions about Trusts, Durable Powers
of Attorney for asset management, Advance Health Care
Directives, and any other appropriate planning options.
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