A special needs trust can be a great way to provide for a loved one who may need to rely on government programs for support as he or she ages. This is because assets that are placed into a special needs trust do not count toward income limitations for programs such as Medicaid. This means that your loved one can continue to receive support from government programs in addition to the support that you provide through the trust.
If that sounds tempting to you, then you might be wondering what, exactly, a special needs trust can pay for.
The expansive use of special needs trust assets
While there are some limitations on the use of assets that are placed into a special needs trust, the truth of the matter is that their use is actually pretty wide-ranging. Special needs trust assets can be used to pay for any of the following:
- Medical care not covered by government programs
- One vehicle
- A primary residence
- Home furnishings and appliances
- Items of personal care
- Service animal care and supplies
- Other transportation costs
- Internet service
- Yard services
Keep in mind that this is an abbreviated list of what can be covered by special needs trust assets. In fact, the law even has a catch-all provision that essentially allows the trustee to make disbursements that he or she deems appropriate for the benefit of the beneficiary.
Making sure your loved ones are taken care of
As we have discussed previously on this blog, the estate planning process is wholly customizable so that you can develop the plan that is best for your estate and, more importantly, your loved ones. But you have to be detailed and thorough if you want the transfer of your wealth to play out without a hitch. That’s why it might be wise to discuss these matters further with an experienced estate planning attorney.