Are you interested in consulting with an attorney to setup a special needs trust? Do you feel this is the best decision you can make?
Regardless of what you end up doing in the future, by consulting with an attorney you will have a better idea of what this could do for you and your family.
Of course, there are both advantages and disadvantages of a special needs trust. You need to pay close attention to the good and the bad, as this will allow you to make an informed and confident decision.
Advantages of a Special Needs Trust
Have you taken the time to learn more about the advantages of a special needs trust? Here are several points to consider:
- A special needs trust can keep a person eligible for government benefits, such as Medicaid and SSI, while also paying for services in addition to what the government offers.
- The funds used to create a special needs trust are tax deductible. Speak with your accountant about this.
- Ensures that the funds in the special needs trust are for a person with a disability.
- Funds are not made available to creditors, but instead are only used to care for the disabled party.
Disadvantages of a Special Needs Trust
Along with the advantages above, there are several disadvantages of a special needs trust. These include:
- Cost of creating a special needs trust can be high. For many people, this is enough to scare them away from getting started.
- Takes away some of the independence from the person with a disability. This person is required to request funds from a trustee, which can lead to issues down the road.
- Medicaid payback. Did you know that certain funds added to a special needs trust must be used to pay back Medicaid? This can lead to the trust disappearing after the trust ends (such as when the disabled person passes on).
These are the types of details to take into consideration when deciding if now is the time to setup a special needs trust. The advantages and disadvantages above should help you form an opinion. From there, contact a local attorney to discuss your personal situation and whether or not this is something you should be doing right now. With professional help, it will not be long before you are creating a special needs trust or deciding against this for the meantime.