A special needs trust can be a great way to provide your loved one with financial resources while protecting his or her ability to obtain government benefits like Medicaid. Yet, there are a lot of misconceptions out there about special needs trusts. For example, many people think that the restrictions placed on the use of assets placed in a special needs trust are so restrictive so as to render their use meaningless. This is far from the truth.
What can special needs trust assets be used for?
While there are limitations on how assets from a special needs trust can be used, the truth is that the restrictions are pretty minimal. In fact, special needs trust assets may be used to pay for any of the following:
- A primary residence
- A vehicle
- Equipment meant to meet medical needs, like a wheelchair
- Furniture
- Personal effects
- Medical expenses not covered by government programs
- Training
- Education
- Recreation
- Entertainment
- Insurance
- Vacation
As you can see, the use of these assets is quite extensive, which is why it may be wise for you to consider creating one of these trusts for your loved one. By doing so, you can help ensure not only that your loved one can receive the medical care that he or she needs, but also that your loved one can have the enjoyment of life that he or she deserves.
Secure help with your estate planning needs
Remember, though, that a special needs trust has to be created in a legally valid way if you want your loved one to enjoy its benefits. If you fail to do so, then your assets may be distributed in a way that you never intended, and your loved one’s future may be at risk. So, if you’d like to learn more about how you can create the legally sound estate plan that you need, then we encourage you to discuss your circumstances and your wishes for the future with an attorney you trust.