Helping out a loved one with a disability is a wonderful thing to do – unless your gesture creates more problems than it solves.

People with disabilities often qualify for needs-based government programs.  Supplemental Security Income (SSI) provides extra funds to people with disabilities who have limited assets and income.  Medicaid provides medical assistance, like home health care, nursing home care, or funds for doctor visits and medicine.

Great – but if you leave assets to a loved one currently enrolled in those programs, your bequest could disqualify them because their assets are no longer so limited.  In that case they will need to extinguish those assets; only then will they be able to resume receiving benefits.

Fortunately there is an estate planning solution to this issue:  A Special Needs Trust.  A Special Needs Trust can hold cash, securities, real property, and other assets.  The assets in the Trust can be used to provide benefits or services not covered by government programs: Entertainment, travel, personal companion services, transportation, furnishings… all the things not covered by Medicaid and SSI.  That way your loved one can continue to receive the government benefits they deserve and live a better lifestyle due to your bequest.

See us for help in creating a qualified Special Needs Trust.  That way you can make sure your gift is used as you intend, and that your loved one continues to receive the assistance they so rightly deserve.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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