If you have a relative who is severely disabled and can not work, you may worry about how that person would continue to receive the public benefits he or she desperately needs if you or someone else in the family were to pass away and leave him or her money. This issue usually comes into play when a parent is planning his or her estate and has a disabled child (minor or adult) to think about. If a parent leaves money to the child, it could disqualify the child from receiving lifesaving benefits, like Medicaid, Medicare, Social Security, and more. So, what is the solution?
At Five Points Law Group, our estate planning attorneys can craft a carefully prepared special needs trust to protect a disabled person’s interests, while preserving his or her rights to public programs and benefits. Here is how these trusts work.
For aging parents of a disabled child, it can be a scary time. It may be clear that without public health benefits, a child may have no way to care for him or herself. At the same time, aging parents may want to make sure that their inheritance is not wasted. Thus, through careful estate planning, there are ways to do both leave money to the disabled child, while simultaneously maintaining his or her right to utilize benefits. This is often done through an Alabama special needs trust (SNT).
There are two kinds of SNTs — a third-party or a first-party trust. The one you use depends on the circumstances.
To discuss this option with a skilled estate planning attorney near you, call Five Points Law Group today.