Severna Park Special Needs Trust Attorney
Your special needs child or loved one requires extra consideration when planning your estate, as the assets that you leave them could negatively impact their ability to qualify for certain state-funded financial and medical programs that they currently depend on, or will need to depend on in the future when you are no longer around or when their condition has worsened. A special needs trust accomplishes this goal and allows your loved one to be financially stable after you pass, ensuring that a trustee controls the assets within the trust in your loved one’s best interest. Reach out to our skilled Severna Park special needs trust attorneys, who can assist you every step of the way.
The Basics of a Special Needs Trust
A special needs trust is a trust set up by you that will benefit someone you care about who has a disability. This disability may be a mental disability, developmental, health-related, or physical. The trust is designed specifically for the beneficiary’s needs, and allows them access to the property that you leave behind in a way that helps them the most.
Special Needs Trust for Maintaining Eligibility for SSI Benefits and Medicaid
Social Security Insurance (SSI) benefits are an important resource for millions of disabled Americans, young and old. According to the Social Security Administration (SSA), one in five people in the U.S. lives with a disability, one in 20 lives with a severe disability, and among 20-year-olds who are currently receiving disability benefits, 25 percent of them will become disabled before they reach retirement age, meaning that they will have to fully rely on SSI benefits. On average, a recipient is awarded $1,165 per month, which is just at the poverty rate. While this amount of money is low to live on, it is a significant and often vital financial aid for disabled individuals. In order to qualify for SSI benefits, a disabled person must have a disability recognized by the SSA, and they must be incapable of earning a certain amount each month, referred to as substantial gainful activity, which is around $1,100 per month and changes from year to year. Additionally, if an individual has more than $2,000 in any assets, they will become ineligible for SSI benefits, according to the American Bar Association. Medicaid, which is a federally funded healthcare program, allows low-income people to receive high-quality medical services. To qualify, the individual cannot make more than a certain amount per year, currently set at around $16,000 per year. A special needs trust allows your loved one to maintain their eligibility for SSI benefits, as well as Medicaid.
Special Needs Trust for Other Reasons
Disabled loved ones who do not rely on state-funded programs can benefit from a special needs trust too. The trust can help them with the following:
- Medical costs;
- Physical therapy;
- Personal care attendant;
- Educational expenses; and
- Individual products and services needs.
A Special Needs Trust Attorney is Here to Help
A Severna Park special needs trust attorney can explain the benefits of a special needs trust in great detail, and help you set one up as soon as you are ready. Reach out to the Severna Park law offices of Frame & Frame today.