Introduction to Special Needs Estate Planning
In this Elder Law Minute, Wes Coulson explains why special needs estate planning is essential if you’re planning on leaving your assets to a loved one with special needs.
Why Is Special Needs Estate Planning Important?
Greetings, I’m Wes Coulson from Dent Coulson Elder Law, and this will be your Elder Law Minute. We’re happy to share these insights because we believe they can help you understand how we can assist you. There are many things to consider when it comes to elder care and special needs estate planning. I hope this information helps.
The Risks of Inheriting Directly
Today, I want to discuss why you must be careful when planning for a special needs family member. For example, let’s say someone you care for depends on government assistance for essentials like food, shelter, and medical care.
If this person inherits money directly from you, it might put them over the asset limit. The benefits they rely on are means-tested, which means they can only have a limited amount of assets.
Avoiding Common Pitfalls
Leaving money directly to a special needs person could cause them more harm than good. As a result, they could lose their eligibility for benefits. Essentially, you would be leaving your estate to the government because your family member would no longer qualify for those benefits. After the money is gone, they would need to reapply for assistance.
How to Plan Correctly
The best way to protect a special needs family member is by setting up a Special Needs Trust. This type of trust ensures the money is set aside for their benefit without being given to them directly. The trustee has specific instructions: “Use this money for the family member’s benefit, but do not spend it on anything that could make them lose their eligibility for government assistance.”
Conclusion: Take Action to Protect Your Loved One’s Future
The takeaway here is simple but very important: if you have a special needs family member, you need the help of an attorney experienced in special needs estate planning. This approach allows you to support your family member without causing them harm. Special needs estate planning is crucial for protecting your loved one’s future. Therefore, give us a call; we would be happy to help.
Thanks so much.
Information about Medicaid and Asset Preservation? Visit these articles:
“Your Trusted Advisor on the Elder Care Journey”
Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (618) 632-7000 (IL) or (314) 567-9292 (MO), or Contact Us and we will get in touch as soon as possible.
