Most Kentucky parents want to ensure that their children have proper care if something were to happen to them. When your child has disabilities and special care needs, long-term care may be more difficult. It is necessary for the parent to plan how to guarantee the child has proper care. In addition to the special needs child, if you plan to have siblings or other family members care for said child, then you have to ensure that there are benefits to that person also.
There are three types of special needs trusts. The first is a first-party trust. The first-party trust contains assets for the special needs person. According to the Kentucky Guardianship Association, a person that has more than $2000 cannot qualify for Medicaid programs. If the child has a trust then he or she cannot have Medicaid refused.
A third-party trust is one where you fund the family members or caretakers of your child. These people would receive financial help when it comes to living expenses. As with a first-party trust, this trust allows the child to retain his or her government benefits.
The final trust is more complex. The pooled special needs trust has assets from many different beneficiaries. These trusts develop through non-profit organizations. Each beneficiary has his or her own account within the trust. This type of trust ensures that a person’s assets have protection and that general support expenses do not drain the child or adult child’s personal funds.
All of the above information is for education purposes only. None of it is legal advice.