Whether you are a beneficiary and are unsure of how your inheritance will impact your ability to receive Social Security benefits or you are creating a trust and worry about how the assets you pass down will affect a loved one’s SSI eligibility, it is crucial to review your options. Sometimes, people are unable to continue receiving benefits as a result of inheritance from a loved one who died and it is important for those creating an estate plan to take these factors into consideration, especially if they have a family member with special needs.
Fortunately, special needs trusts help many people protect their loved one’s ability to receive critical benefits from the government and assets from the estate as well.
Trusts and the reduction of SSI benefits
Sometimes, the funds that beneficiaries receive from trusts reduce their SSI benefits, according to the Social Security Administration. Moreover, some payments that people receive through trusts also affect their ability to retain Medicaid eligibility. However, special needs trusts that are set up properly often allow recipients to retain their eligibility for these programs. It is imperative to ensure that your loved one with special needs does not lose access to critical benefits they need as a result of inheritance from your estate.
Other benefits of special needs trusts
For those who have a loved one with special needs, these trusts offer the opportunity to create an estate plan that is tailored to meet the unique needs of someone with a serious disability. Moreover, they also offer peace of mind for those who create a trust as well as beneficiaries who receive assets. An effective estate plan is not only crucial from a financial standpoint, but it also offers peace of mind.