Is Your Loved One With a Disability Protected?
Caring for a loved one with a disability can present significant legal and financial challenges, especially when they receive substantial funds.
At times we may find ourselves caring for a loved one who is unable to function independently. Whether their disability is from injury, illness, or other causes, legal and financial issues arise when the person receives sizable funds such as an inheritance or lawsuit settlement. The money is intended for the use and care of the person with the disability. Without proper planning and legal safeguards in place, they may no longer qualify for state benefits. An inheritance or settlement can be quickly spent as it must be used to fully pay for the person’s immediate expenses.
This hurdle can be minimized with a Special Needs Trust. This legal structure is created specifically for a person with a disability in order to protect the person’s financial assets. With a Special Needs Trust, the person qualifies to receive state disability assistance while still able to use the settlement or inheritance money available for their care and comfort. This protected money is often needed for the many goods and services that state aid does not cover, such as medical supplies, therapies, dental services, vehicles, computers, furniture, and even expenses for travel, education, and job training.
A First Party Special Needs Trust is funded with money belonging to the person with a disability, such as investments, inheritances, gifts, or legal settlements. Also known as a (d)(4)(A) trust, there’s a payback rule that requires reimbursement to MO HealthNet (Medicaid) when the beneficiary dies or the trust ends, if they received Medicaid benefits.
A Third-Party Special Needs Trust is funded by someone other than the beneficiary, like family members or friends. These trusts don’t need to pay back MO HealthNet (Medicaid) making them a popular choice for leaving an inheritance to special needs children or adults.
At Assertion Law Firm LLC and 417 Business & Elder Law, we understand the high costs and stress involved in caring for a family member with a disability and the importance of protecting the benefits they receive. We help you think through the various options available and the continuing effects of each. You can then make a well-informed decision about what is best for your loved one. We give our clients peace of mind knowing that their family members will have every resource available for their long-term comfort and support.
Please call our office at (888) 887-4170 if you have any questions about this article.
Caring for a loved one with a disability can present significant legal and financial challenges, especially when they receive substantial funds.
