To avoid this dilemma, it is important to include provisions in your estate plan that will enable a loved one with a disability to maintain eligibility for means-tested government benefits without having to forgo his or her inheritance. In addition, it is important to review common savings vehicles for children, like custodial accounts or traditional irrevocable trusts, that will cause a reduction or elimination of public benefits for a child with a disability when he or she reaches adulthood.
The most common document created to protect a disabled child’s benefits is a special needs trust. The government has established rules allowing assets to be held in trust, called a “Special Needs” or “Supplemental Needs” Trust for a recipient of SSI and Medicaid, as long as certain requirements are met. Depending on your needs, this trust can then be used to pay for activities, amenities, home care or even a home. With proper planning, your disabled family member can fully utilize the public resources available to them and maintain a quality standard of living once you are no longer able to care for them.

Financial Gifts Can Disrupt Benefits
Without a Special Needs Trust (SNT) in place, assets left directly to a person with disabilities can jeopardize their eligibility for critical public assistance programs. This can lead to:
- Loss of Medicaid coverage
- Disqualification from Supplemental Security Income (SSI)
- Financial vulnerability due to improper fund management
- Legal challenges and unintended tax consequences
How a Special Needs Trust Works
A Special Needs Trust is a legal arrangement designed to hold assets for the benefit of a person with disabilities. These assets can be used to cover expenses beyond government-provided assistance, such as:
- Housing and living arrangements
- Education and training
- Medical and dental care not covered by Medicaid
- Transportation and recreational activities
- Personal care and quality-of-life enhancementsLoss of Medicaid coverage

Give Your Loved One a Secure Future
A Special Needs Trust allows you to provide for your loved one without risking their eligibility for essential benefits. The right legal plan ensures their care and quality of life for years to come. Kierman Law, can help you set up a Special Needs Trust in Arizona so that government benefit eligibility is preserved while at the same time providing assets that will meet the supplemental needs of your loved ones.
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Contact us today to schedule an appointment to set up a Special Needs Trust.
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