Why is Special Needs Trust Planning Important?
Many individuals with special needs qualify for needs-based government benefits, including Supplemental Security Income (SSI) and Medicaid. These benefits are extremely important because they provide the special needs person with income and medical care coverage. Having too many assets is a significant obstacle when qualifying for these valuable benefits. Generally, once someone has more than $2,000.00 (2004 asset limit) eligibility for government benefits is lost and Medicaid and SSI stop. A special needs person with more than $2,000.00 must use his or her own money to pay for things that would have been paid by government benefits. Example Sally is 32 and receives SSI and Medicaid due to her disabilities. Sally’s mother died leaving Sally an $80,000.00 inheritance. Because Sally’s mother did not plan to protect Sally’s inheritance, Sally loses her SSI and Medicaid benefits. Unless Sally’s inheritance is put into a Special Needs Trust it will have to be used to pay for her medical and
