Providing for a Disabled Family Member
The primary purpose of a special needs trust is to provide for the needs of an individual without disrupting that person's eligibility for Medicaid and Social Security and other government benefits. The experienced lawyers of Cushing & Dolan, P.C., can structure the trust to make sure your loved one has the actual necessities of life without compromising government benefits.
We provide comprehensive estate planning services to families in Greater Boston, and throughout Massachusetts and New Hampshire. Arrange a free consultation today about creating a special needs trust.
Creating a Special Needs Trust
A special needs trust, also known as a supplemental needs trust, is established on behalf of a person who is mentally or physically incapacitated under the Social Security Administration's definition of disability. It is most commonly created for an adult child with mental or physical disabilities to preserve eligibility for Medicaid (MassHealth), Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
Assets in a special needs trust are distributed to the beneficiary at the discretion of a trustee. (The parents can be the trustees with a successor trustee named, should they predecease the beneficiary..) The trust cannot pay for basic needs, which are covered by government benefits and programs. The trustee can authorize expenditures for such things as:
- Vacations, summer camp and travel
- Movies, restaurant meals and social outings
- Sporting goods, cosmetics and other quality-of-life items
- Medical treatments not covered by benefits programs
- Hiring an attorney
There are two main types of special needs trusts:
— A self-funded special needs trust preserves assets of the disabled person, such as an inheritance, or proceeds from a personal injury settlement. Without the trust, the person would have to spend all personal assets to qualify for government programs. (D)(4)(A)
— A family trust or pooled trust funded by the parents or relatives, often through a life insurance policy. (This type of trust must include a so called "(d)(4)(A)" payback provision, which reimburses Medicaid or Social Security when the disabled person dies.)
Boston Trust Attorneys
We know the strategies and pitfalls of special needs planning. Call Cushing & Dolan at 617-523-1555 or contact us online. We offer a free consultation, with six convenient locations in Boston and surrounding counties.
