Having a child with special needs often requires parents to think creatively in many situations. Their child may need to approach certain scenarios differently, and parents may need to find the best approaches for their child. Of course, because parents in Arkansas want to do what is best for their children, they do not want to inadvertently cause financial hardships in the future. Therefore, they may want to consider creating special needs trusts when estate planning.
Often, individuals with special needs receive benefits from the government, such as Medicaid, supplemental security income and others. These benefits are typically based on income, and if it appears that a special needs person has more income, he or she could be disqualified from receiving benefits. This type of mishap could happen if a parent directly leaves an inheritance to a special needs child.
Instead of directly bequeathing assets, parents may instead want to utilize a special needs trust. This type of trust can allow parents to put assets into the trust and have those assets managed by a trustee. The special needs person can be named as a beneficiary of the trust, but because the assets are not directly passed on to him or her, the assets do not count when agencies review eligibility for benefits.
Many people may not know that trusts can have such uses, which is why it is important that Arkansas residents thoroughly review their estate planning options. Rather than writing off a trust as something only needed by wealthy individuals, they may want to explore how this tool could help them. Discussing the use of this planning option with knowledgeable attorneys could help interested parties determine whether it could suit their needs.