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so special needs trusts are very
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important
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for families with special needs children
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if they plan to leave them any assets at
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all
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one way that you can plan for a special
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needs child is to effectively disinherit
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them
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so if you had two children one with
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special needs and one who did not have
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special needs you would effectively
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leave the assets to the child who did
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not have special needs
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and then trust that they were going to
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take care of their sibling
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one of the big issues with that is that
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the the
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non-special needs child could run into
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financial difficulties and the assets
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that you left them with the intention
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they use them to help
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take care of their sibling could wind up
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being
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subject to a judgment creditor or some
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other type of creditor
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so that’s a really big potential problem
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with that type of planning
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a special needs trust eliminates that
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issue
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and the way it works is that you
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establish a special needs trust that
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acts as a bucket
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for that special needs child and it’s
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drafted in
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in a special way that
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means that the assets in that trust
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don’t count for that child and it
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enables them to continue to receive
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government benefits like medicaid that
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they may need or ssi
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and then you can either through your
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will or your revocable living trust you
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can leave assets
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to that special needs trust so they’ll
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flow into that special needs trust
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and those assets will be protected and
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they will not be accountable resources
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for purposes of applying
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for ssi or medicaid benefits
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you