What is a Special or Supplemental Needs Trust?

nest-eggThe Medicare program was put into place as an insurance program to take care of the elderly and people with disabilities. In 2010, Medicare provided health care benefits for eight million disabled people who were unable to afford their own health insurance or health care. Medicaid is another entitlement program which provides money for healthcare for people of low incomes and disabilities. The allocation of these public benefits necessitates that certain eligibility requirements such as low asset or low income households exist. A single person cannot qualify for these benefits if they have over $2,000 of countable assets; a married couple cannot have more than $3,000.

While most health related needs of the disabled and elderly are taken care of, there are other needs such as emotional, educational, social, and housing that must be addressed. This is essentially why special needs trusts were created in the United States. These trusts are controlled by a third party in the best interests of the beneficiary. Due to the fact that any payouts of the trust are not organized by the elderly person or person with a disability, then it does not interfere with the benefits of programs like Medicaid, Medicare, or Social Security Disability Insurance.

A special needs trust is also an effective way to plan your estate. The trust can also outline special care instructions for the beneficiary. Management of the trust can be set up to administer the trust when faced with any changes to trust law or public benefits. It is very important to leave detailed instructions for any loved one that has special requirements. In order to fully secure their future against any type of hardship, please contact an experienced estate planning attorney in Naperville today.