SPECIAL NEEDS TRUSTS
Chances are there is, or will be, someone in your family (spouse, child, grandchild, parent, or sibling) who will need long-term assistance managing their personal care and/or finances.
Common concerns include the following:
Common concerns include the following:
- Who will care for my loved one when I become incapacitated or die?
- How will my caregivers know what to do?
- Who will advocate for my loved one when I cannot?
- Where will my loved one live?
- How much independence can my loved one maintain?
- Will the money I provide last for my loved one's lifetime?
As the need for government benefits increases and as more individuals qualify for benefits, public benefit programs can and often do change. Because those we seek to protect are the least able to protect themselves, special needs planning requires vigilance on the part of clients and their attorneys to monitor changes in the law.
In the past, many planners focused exclusively on preserving public benefits at all costs. Today, special needs planning is not necessarily "poverty planning." The proper focus is not necessarily to maximize government aid, but to provide the best quality of life throughout the person's lifetime using a combination of trusts and government aid. As a result, it may be better to privatize some special needs care instead of spending thousands to protect a benefit that has a low probability of being available in the future.
Careful investment of trust assets is critical, since loss of these assets could be catastrophic for the beneficiary. The assets will need to earn or grow enough to provide for, or supplement, the beneficiary's care.
In the past, many planners focused exclusively on preserving public benefits at all costs. Today, special needs planning is not necessarily "poverty planning." The proper focus is not necessarily to maximize government aid, but to provide the best quality of life throughout the person's lifetime using a combination of trusts and government aid. As a result, it may be better to privatize some special needs care instead of spending thousands to protect a benefit that has a low probability of being available in the future.
Careful investment of trust assets is critical, since loss of these assets could be catastrophic for the beneficiary. The assets will need to earn or grow enough to provide for, or supplement, the beneficiary's care.
