You have to see the big picture and think everything through when you are arranging for the transfer of assets to those that you love after you pass away. Each situation is different and you should carefully evaluate the recipients’ needs and proclivities before taking any action.
This is something that is very important when it comes to making provisions for someone in the family who may have special needs.
People with disabilities often take advantage of programs such as Medicaid to assist them financially. This program will pay for long-term care, and this is an extremely big deal because this type of care comes with an exorbitant price tag.
An individual who needs nursing home care for an extended period of time could be looking at expenses reaching hundreds upon hundreds of thousands of dollars.
If you simply bequeath significant financial resources to someone who is reliant on the Medicaid program to pay for long-term care you could be jeopardizing this individual’s benefit eligibility.
There are however trusts called supplemental or special needs trusts that can be created for the benefit of someone who requires assistance with his or her day-to-day needs. With a properly constructed special needs trust you may be able to provide for a person with a disability without impacting his or her Medicaid eligibility.
Situations like these call for careful and precise planning. To learn more, simply take a moment to arrange for an informative consultation a licensed and experienced Indianapolis estate planning attorney who has a background assisting families with special-needs members.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
- How Do I Know If My Estate Has Enough Liquidity? - July 22, 2019
- Can’t I Just Transfer Assets to My Adult Child If I Need to Qualify for Medicaid? - July 19, 2019
- What Type of Will Is Best for Me? - July 17, 2019