If you care for a child or loved one with special needs (such as mental or physical disabilities) you find yourself facing many difficult questions. One of the most important and major concerns is what will happen to them when you are no longer able to support and care for them.

While you can certainly specify that they receive money and assets, such a bestowal may potentially prevent them from qualifying for necessary benefits under the Supplemental Security Income (SSI) and Medicaid programs. If parents leave any assets to their child who is currently accepting public benefits, they run the chance of disqualifying the child from receiving them. Luckily, the government has created rules that allow for Special Needs Trust for the benefit of a child, which allows them to continue to receive benefits from SSI and Medicaid.

The Osborne Firm can help you establish a Special Needs Trust so that government benefit eligibility is continued while simultaneously providing assets that will meet the additional needs of the person with a disability. Such needs are those that go beyond food, shelter and clothing, medical and long term supports and services of Medicaid. A Special Needs Trust actually must be constructed particularly to supplement, not replace public benefits. It is important to note that funds from the trust cannot be dispensed directly to the disabled beneficiary. Alternatively, the funds must be disbursed to third parties who provide goods and services for use and enjoyment by the disabled beneficiary.

There are a number of life-enhancing expenditures that can be used while not compromising your loved ones’ eligibility to receive government benefits, such as:

• Yearly check-ups at an independent medical facility
• Attendance of religious services
• Additional education and tutoring
• Transportation (as well as the purchase of a vehicle)
• Maintenance of vehicles
• Purchase of hobby or recreational activity supplies
• Funding for trips or vacations
• Funding for entertainment such as sporting events, movies, and shows
• Purchase of goods and services that add enjoyment and quality to life such as computers, movies, furniture, and other electronics
• Specific dietary needs
• Personal care attendants or escorts

Special Needs Trust are crucial to your estate planning if you have any disabled beneficiaries who need care of after your death. Typically, a Special Needs Trust is either a stand alone trust funded with a separate asset like a life insurance policy or it can be created as a sub-trust in your existing living trust.