What is a special needs trust?

If your adult child is living with disability, it is likely that he or she gets Supplemental Security Income (SSI). Your child likely does not get a lot of money from SSI. However, your child likely needs to keep his or her Medicaid. If your child loses his or her Medicaid, this could be a big problem.

One of the ways that your child can lose SSI benefits is if he or she has too much money. This is why creating a special needs trust is very important. A special needs trust can help your adult child keep money you give to them after you die. It will also help your child keep their SSI benefits.

Why would my child lose SSI benefits?

People can only get SSI benefits if they have a very low income. SSI benefits are for people who cannot work at now or ever due to their disabilities. If the government finds that your child has too much money in his or her bank account, the government might take the SSI benefits away.

How does a special needs trust help?

A special needs trust can help your child access money that you leave them after you die. A special needs trust is very similar to a parent’s pocket. This means that the special needs trust can help your child pay for fun activities, education and additional medical help.

However, the rules that control what the special needs trust can pay for are very complex and can be difficult to understand. It is important that you make plans before you die to take care of your adult child with special needs.