Many parents with disabled children worry about how their kids will survive when they are no longer here to support them emotionally and financially. But, unfortunately, leaving money to your child with autism may prevent him from receiving assistance from Social Security’s Supplement Security Income and Medicaid.
Most beneficiaries in these programs only have a few thousand dollars in assets. The financial aid from those programs is typically only a few hundred dollars per month – not enough to live on. A special needs trust (SNT) for a child with autism is an option that can provide for the child when you are gone.
Learn more about special needs trusts here, then speak to an Ohio estate planning lawyer at The Law Office of John C. Grundy for assistance.
Benefits Of An SNT
The biggest reason parents with an autistic child set up a special needs trust are the trust owns the assets, not the child. This means they are not included in asset limit tests for Medicaid and SSI. Also, the trust can improve the quality of life for your child when you are gone, such as providing a private room in an assisted living facility. Medicaid usually only covers a semi-private room. The SNT also ensures that your autistic child gets the funds and that your other family is not saddled with caring for him.
What Is A Special Need?
An SNT only can be set up for someone who is under 65. The trust is designed for someone with mental and physical disabilities so severe that they cannot work and support themselves without financial assistance. If disabled people can work, they will probably earn too much money to qualify for an SNT.
There needs to be a national standard for regulating special needs trusts. All states have varying guidelines for who qualifies for an SNT. Also, it is difficult to know how severe the child’s disability will be down the road.
For example, an autistic child could eventually improve enough to work when he is an adult. If you are unsure, attorneys recommend setting up the SNT just in case. For example, you can set up a regular trust fund that states if the child qualifies for government benefits, the trust will become an SNT.
If the child does not need the SNT, it would be a standard trust. It would give the child income according to how you and your attorney establish it. Further, setting up a special needs trust only costs a few thousand dollars, so it is worth doing for a child with autism.
Contact An Ohio Estate Planning Lawyer Today
Whatever your age, estate planning is essential to ensure that your assets go to the people you want if you pass away or become incapacitated. The Law Office of John C. Grundy has helped Ohio families with their estate planning concerns for years.
Our Ohio estate planning lawyers also serve Cortland, Akron, Youngstown, Niles, Warren, Kent, Newton Falls, and Aurora. Contact us today for assistance with estate planning and related matters.