| SPECIAL NEEDS TRUSTS… READ ON:
READER QUESTION:
What if my child is on Medicaid, not Medicare? Can Medicaid take the inheritance we leave to him if he has a trust? Will having a trust take him off Medicaid? And if not, will Medicaid take the money my child needs to live on?
MY RESPONSE:
A SPECIAL NEEDS TRUST IS TRULY SPECIAL — AND IT IS THE ANSWER TO YOUR QUESTION.
You are absolutely right to be concerned. Every parent of a child with disabilities shares this worry. If your child is receiving Medicaid, leaving an inheritance outright is a problem — it will likely disqualify them from benefits.
But if you leave that inheritance to a properly drafted Special Needs Trust, everything changes: Medicaid cannot simply take the inheritance, and your child can remain eligible for benefits. That is exactly what a Special Needs Trust is designed to do.
The bottom line is this: You CAN leave money to a child on Medicaid — you just have to leave it the right way.
When assets are left in a Special Needs Trust, the funds stay in the trust and are used to enhance your child’s quality of life. The trust can pay for things like better housing, travel, therapies, companions, and other extras that Medicaid does not cover.
One important note: the trust must be properly drafted and properly administered. When done right, it provides exactly what parents want most — peace of mind that their child will be cared for without losing essential benefits.
I hope this helps. |
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