When you have loved ones with special needs, there are certain times and situations wherein they require additional care and consideration. This is particularly true in regards to their care in the case that a guardian or caregiver passes or is no longer available.
Thankfully, there are programs and services in place to help protect the estate and inheritance of parties with special needs, including special needs trusts. In fact, there are a few different types of special needs trusts to consider.
A general support trust is a common type of trust for those with special needs. In particular, for those who have a large number of assets or high-value assets that can support them throughout their lives, a general support trust may be . This trust controls those assets and provides for all beneficiaries’ general needs.
In some cases, a supplemental care trust is more popular than a general support trust. Similar to a general trust, the supplemental care trust provides for the beneficiary’s general needs. However, as the name indicates, this trust supplements benefits received from the government. Therefore, the government covers the beneficiary’s general needs first, and the trust covers the rest. To ensure the proper execution of the trust, the Trust Unit administers an annual assessment, which also applies to the general support trust.
There are two main pooled trust options available:
- Medicaid payback trusts
- Pooled account trust
In both instances, parties can put certain assets into the trust that may disqualify them from receiving governmental assistance. One of the main distinctions between the two pooled trust options is that the Medicaid payback trust requires that upon the beneficiary’s passing, the estate must pay back any Medicaid payments.
Any of the available special needs trusts can be beneficial, depending on the estate’s particulars. Take some time to consider how the different trust types can benefit the estate, and consider consulting with an attorney to determine the best possible option.