Planning for the financial security of a child is a critical issue faced by over 29% of American families that have a member with special needs. Numerous families often struggle to figure out the best method to ensure that their child has sufficient financial resources to live a comfortable life after the parents or caregiver have passed away.
Individuals who have “special needs” fall into a wide spectrum of persons with physical, mental and emotional abilities. In order to maximize the quality of their lives, these individuals may require special accommodations, programs and/or services that can be rather costly and may need outright financial assistance in order to live independently as an adult.
Considering government benefits such as SSSI and Medicaid have funds set aside to supplement income from benefits, it is often not enough. On average, families spend about $4,000 on out-of-pocket medical and living expenses. A trust is a viable solution in order to protect government funding while also providing usable assets to the person with the disability.
The purpose behind a Special Needs Trust is to provide a specific source of funds for a particular individual and his/her unique needs. If the individual receives government benefits or may need government benefits in the future, a Special Needs Trust is an invaluable resource that provides for the “supplemental” needs of the individual while preserving his/her eligibility for government programs.
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