Special Needs Trust
A Special Needs Trust has a very unique purpose. They are created solely for the need to hold assets of an individual without jeopardizing that person’s eligibility for Supplemental Security Income or Medicaid. These two government programs have strict asset limits of $2000. If an individual has more than $2000, then they would not qualify for the support. Even worse, I have seen Social Security pursue clients who were previously on Supplemental Security Income, received an inheritance, lost their Supplemental Security Income and the Social Security Administration pursue the client for back pay of the Supplemental Security Income they received while they were ineligible.
The Special Needs Trust prevents the individual from losing their benefits, while still having the ability to utilize the assets held in the trust for their benefit.