Your spouse is living with Alzheimer's or Dementia and he or she is now receiving government benefits. You, family members or friends, would like to ensure that he or she receives additional support without jeopardizing the amount of government assistance that he or she currently receives. What tool can you use to achieve this goal?
A Special Needs Trust ("SNT") is often thought of as a tool only available for people with special needs, such as those with autism or Down's Syndrome. In reality, a SNT is designed to provide supplemental care to those receiving government assistance, such as Medicaid or SSI. Therefore, a SNT is often referred to as a Supplemental Needs Trust or Extra-Supplemental Care Trust.
A SNT is designed to improve a beneficiary's quality of life by paying for items that are not provided for by government benefits. The trust can also pay for expenses covered by government benefits, but please be aware that there are consequences for doing so. If your wish is to only supplement your loved one's care, then it is very important to make only permissible distributions from the trust.
This type of trust can be created and put into effect while you are still alive (stand-alone) or after you have passed away (testamentary). A stand-alone special needs trust is a trust created in the present and anyone can presently contribute to it. A testamentary SNT, on the other hand, is created after you pass away and the terms are set up within your estate plan. Whether a stand-alone or testamentary SNT is the right tool to use will depend on your goals and desires.
If you have any questions about Special Needs Trust, contact Rehberg Law Group at (206) 246-8772.
Kommentare