Taking care of someone with disabilities or special needs requires extensive consideration in certain cases. One of those instances is to ensure proper care when you or a primary caregiver is not around.
A special-needs trust may be beneficial for such care. There are a few different options for you to consider.
Supplemental care and general support trusts are the most common types of trusts that people instate for those with special needs. The supplemental care trust is the more common choice of the two, as it still allows the beneficiary to receive available governmental assistance, and the trust provides for any additional financial needs. On the other hand, a general support trust provides for all the general needs of the party, without government assistance. This option may be best for those who have extensive assets that would be able to sustain the party throughout the course of his or her lifetime. In either case, the trust must adhere to the set laws and regulations and pass the annual assessment by the Trust Unit.
Irrevocable or pooled
Outside of the usual trusts you can dedicate to a specific party, there are two pooled trust options: Medicaid payback trusts and pooled account trusts. Both types of trusts allow disabled parties to maintain their eligibility for Medicaid and other governmental assistance. As the name indicates, a Medicaid payback trust will require the estate of the party to pay back any Medicaid benefits after he or she passes, before the assets go to any beneficiaries. A pooled account trust helps to maintain a disabled party's Medicaid eligibility by holding assets in the trust that may disqualify him or her from receiving benefits.
As you weigh your options for the right trust for you or your loved one, take your time to determine which one best complements the life you are seeking to uphold. Also, you should take your time when considering the facilitator of your trust, if you have that option.