If you’re looking to leave part of your estate to an individual with special needs, you may want to take caution. Without utilizing the proper trust, you may affect the recipient’s right to gain Supplemental Security Income (SSI) and receive Medicaid coverage and benefits. Here in the state of Arizona, special needs trusts can be put in place to ensure that your estate disbursement recipient receives the benefits of disbursed finances, without affecting their right to receive SSI and Medicaid benefits.
What is a Special Needs Trust?
A trust involves assigning a trustee to disburse estate finances for an individual. If you establish a trust and pass away, the trustee gains control of your finances, and will utilize them to buy goods and services for the assigned special needs candidate. The trustee cannot give money to the candidate directly, since this action can still cause forfeiture of SSI and Medicaid benefits. Essentially, the funds given to the trustee are periodically disbursed to cover costs that the beneficiary might otherwise incur. These costs can include a wide litany of things, including furniture purchases, vacation costs, education expenses, recreational costs, medical expenses, dental expenses, rehabilitation costs, vehicle purchases, and more.
Currently, trusts can be set up by any individual, including a special needs individual him/herself. Bivens & Associates aids individuals in drafting trusts, assigning trustees, and ensuring that finances are disbursed at the will of the deceased at their time of death. If you’re curious about special needs trusts, or if you’d like to begin drafting a special needs trust, feel free to get in touch with the special needs trust attorneys here at Bivens & Associates. We have the knowledge, experience, and expertise to ensure that your trust is set up properly, and that its content is up to current Arizona legal standards making sure that the trust is legally-binding.