Your parents took care of you when you were young, and now as they age you find yourself in a position where you need to take care of them. Sometimes this can be done at home for a while, but for many in Williamsville, the best choice is to put your elderly parent in a nursing home. Of course, nursing home costs are always a concern, and no one wants to see their parent’s estate depleted just to afford nursing home care. Fortunately, there are estate planning strategies you can take to address this problem.
The special needs trust
A special needs trust allows a person to receive income but still qualify for public assistance programs such as Medicaid. If you have too much in income and assets, you will not be eligible for Medicaid. A special needs trust is an estate planning document, in which a person’s assets are placed in the trust, and a percentage of them are used to cover expenses not covered by public assistance programs. The special needs trust is managed by a third-party trustee who is responsible for managing assets in the trust and dispersing funds. Special needs trusts are irrevocable.
What can be paid for through a special needs trust?
Assets in a special needs trust are not counted when it comes to qualifying for Medicaid or other public assistance programs, with the caveat that funds in a special needs trust cannot be used to pay certain expenses regarding food and shelter. Generally people use a special needs trust to pay medical bills, pay for a caretaker, pay for transportation, among other allowed expenditures.
Learn more about estate planning
A special needs trust is a complex legal tool that can be very beneficial if done right. It is generally not something a person can handle alone. This post is for educational purposes only and does not contain legal advice. Our firm’s webpage on estate planning and trusts may be a useful resource for those who want to learn more about this topic.