If you’ve done any amount of research on setting up a special needs trust, you’ve probably figured out that you can’t do it for free (and if you’ve found a source that says otherwise, run the other way before it’s too late!).
You may be trying to think of ways to get around that expense while still protecting your disabled or elderly loved one. We completely understand the desire to spend your money wisely and save as much as possible — that’s why we believe that a special needs trust is worth every penny, and that creating one can save you many more pennies than it will cost!
Keep reading to learn two major reasons that a special needs trust is worth the investment.
Reason #1: Staying Eligible for Medicaid
Perhaps the strongest argument for investing in the setup of a special needs trust is that doing so can keep your loved one eligible for government benefits, like Medicaid.
To take advantage of Medicaid, your elderly or disabled loved one must not have monetary assets that exceed $2,000. That means that anything over that amount, whether it’s in a savings account or otherwise, disqualifies them for Medicaid — which becomes a massive problem if and when they enter a skilled nursing facility.
For example, if your aging parent needs to be admitted to a nursing home and has monetary assets in excess of $2,000, those assets will go to pay the nursing home unless they are protected in a special needs trust for the elderly.
And that could be a lot of money, given the cost of nursing home care.
However, if your parent’s assets are kept in a pooled trust such as Alabama Family Trust, then Medicaid will not count them toward the resource limits for eligibility. That means that instead of your parent footing the nursing home bill and draining their life savings in the process, Medicaid will pay for their long-term care.
The assets contained in the trust can then be used for additional needs not covered by government benefits, which offers a superior quality of life than what might otherwise be possible.
Reason #2: Accountability for Use of Funds
Another reason special needs trusts are worth the investment is that the funds they contain must be used for the benefit of the disabled or elderly beneficiary. The money cannot be distributed for any unapproved reason.
This is especially comforting if the beneficiary is disabled in a way that leaves them vulnerable to exploitation. If someone tries to take advantage of them by asking for money, or tries to trick them into paying for something they shouldn’t, the trust will protect the funds — even if the beneficiary attempts to access them for someone with bad intentions.
Alabama Family Trust Can Protect Your Loved One’s Assets!
When it comes to your loved one’s finances, cutting corners on asset protection won’t pay off in the long run. In fact, neglecting to set up a special needs trust for a disabled or elderly family member could end up costing tens — or even hundreds — of thousands of dollars.
A special needs trust isn’t free — but the protection it offers is priceless.
If you’re interested in more information regarding special needs trusts for the disabled or elderly, contact us today. We can guide you through the process and help you protect your loved one. Don’t wait until it’s too late!