Many people who are disabled are eligible for programs that provide substantial benefit in the way of medical insurance, payment for services and income. A disability may be apparent at birth, or it may be acquired through illness or injury. Programs such as Social Security Disability and Medical Assistance have income eligibility criteria that apply to the person who has a disability, regardless of age. Programs providing in home care, community services, subsidized housing or home modifications have limitations on the amount of income and assets allowable for the recipient.

Trusts are used when planning for people who have a physical, emotional, or mental disability. Trusts used in special needs planning may be revocable or irrevocable. Trusts may be funded during the life of the donor, (Inter-Vivos) or they may be funded by a will (Testamentary). Trusts may be supplemental and intended to add to benefits that are already in place. Trusts may provide broadly for the special needs of the beneficiary. Or, trusts may have payback provisions, intended to provide for the individual with a special need during their lifetime but with language that allows the government to recapture the costs that have contributed to care. The trust is designed to receive assets that are either owned by the individual with a disability, or to receive income or gifts that would other wise create ineligibility for means tested programs, services and supports. Various trusts are used in the process of special needs planning. The use of a particular type of trust depends on the circumstances and planning goals for the individual who is the beneficiary of the trust.

If a person is born with a disability or acquires a disability through illness or injury, a well designed trust may significantly improve the quality of life for that individual and their family.

Attorneys at Steinbacher& Stahl are experienced in special needs planning. If your loved one was born with a disability, or has acquired a disability through illness or injury, call us to schedule a free consultation.