In a long-term care crisis?
In a long-term care crisis?
If you have a person with special needs in your life, you need to pay detailed attention to estate planning. Unlike the traditional process, special needs estate planning in Cranberry Township requires a full understanding of government benefit eligibility. It also demands a smart asset distribution with the person’s unique health needs in mind.
The process becomes even more complicated if that person is not the only dependent in your life. Navigating these complexities requires in-depth legal knowledge that our firm can provide. Before you start planning, consider speaking to one of our talented estate planning attorneys today.
Government benefits have a direct impact on estate planning for people with special needs in Cranberry Township. Without the right planning, giving assets directly to someone with special needs could accidentally cause them to lose important benefits, for example, Supplemental Security Income (SSI).
SSI is a needs-based benefit program for people with disabilities. To qualify, the government looks at the person’s income and assets. If they exceed a certain limit, the person may no longer be eligible for support. The same can be true for Medicaid.
One of the best decisions to prevent the loss of benefits while still providing for your loved one is setting up a special needs trust. An estate planning attorney can offer in-depth advice about this trust and the rest of the planning process.
If you decide that a special needs trust works for your estate planning purposes in Cranberry Township, you can choose between the two common types.
A third-party special needs trust is established by someone who provides care for an individual with special needs, such as a parent, grandparent, or guardian. The beneficiary may use the trust to cover various expenses, including education and entertainment. A key advantage is that when the individual with special needs dies, any remaining assets may pass to other family members.
Since funds don’t legally belong to the person with special needs, the government doesn’t see them when assessing eligibility for benefits.
This type of trust uses the beneficiary’s own assets for funding. It serves as a practical option when an individual with special needs receives money through a personal injury settlement, inheritance, or divorce.
While this trust also helps protect benefits like SSI and Medicaid, it includes a payback provision. This means that when the beneficiary dies, any remaining funds will go to repay the state for the benefits provided during their lifetime.
Effective special needs estate planning in Cranberry Township goes beyond setting up a technical trust. It should also include provisions tailored to the individual’s unique needs. One essential tool is a letter of intent (also called a “letter of instruction”). This letter outlines important details about your loved one’s daily routines and personal preferences. While not legally binding, it guides future caregivers in maintaining the individual’s quality of life.
This letter provides important details about your loved one’s daily routines and preferences. While not legally binding, it helps future caregivers understand how to support the individual’s quality of life.
Planning for the time when you can no longer care for a person with special needs is extremely important. Since numerous nuances surround such care, you should consider working with an attorney.
At Sechler Law Firm, we have many years of experience with special needs estate planning in Cranberry Township. We’re ready to put that knowledge to work for you to help protect your loved one’s future.
Contact us today to schedule a consultation and take the first step toward peace of mind.
Or, join one of our upcoming elder law workshops and learn more about your planning options.
