When it comes to planning for our children and loved ones, trusts play a major role in their financial security and well-being. Choosing the right type of trust is essential to making sure that loved ones, especially those with special needs, are well taken care of in the future.
An SNT provides financial support without impacting their eligibility for government assistance programs. So, is a special needs trust (SNT) the right choice as you plan for your loved one?
They are below 65 years of age
For your loved one to qualify for a special needs trust, they must be under the age of 65 at the time the trust is established. This age requirement is crucial because it allows the trust to provide supplemental support without impacting qualification for federal assistance programs, such as Supplemental Security Income (SSI) and Medicaid.
They have a qualifying disability
A qualifying disability is a key requirement for setting up a special needs trust. This includes conditions that substantially impact daily living or limit physical or mental functioning, as determined by medical assessments. The trust is designed to support the unique needs of individuals with disabilities, helping cover additional care and services that contribute to their well-being. Making sure your loved one meets the eligibility criteria for a qualifying disability is an important step in securing the financial protection they may need in the future.
They rely on special services
A special needs trust is ideal when your loved one depends on additional care or services beyond basic necessities. This may include therapies, specialized medical equipment, personal care assistance or recreational activities that improve their quality of life. The trust helps provide for these extra needs without creating financial strain on family members.
Legal guidance can clarify the requirements and benefits of a special needs trust, helping you create a plan that fits your loved one’s long-term needs.