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If you’re caring for a grownup child who is permanently disabled, you could worry about how well he’ll be looked after after you’re gone. She or he may be mentally, physically, or emotionally disabled and in a position to qualify for Medicaid. But you may want to help him together with your money for all those ‘extra needs and care’ that will make a positive change in his life. Here’s how to proceed… Since Medicaid and Supplemental Security Income (SSI) derive from financial need, its beneficiaries can’t have much profit their particular name if not they’ll lose their benefits. So any money you leave to him can throw him off Medicaid’s help until that money’s used up since Medicaid ‘counts’ it as a resource for his help. In reality any money he’s guaranteed or has discretionary use of will likewise ‘count’. Just what exactly can you do to help him while keeping all his benefits intact? *Create a ‘Supplemental Special Needs Trust’: Provide those ‘extra needs and care’ for him without jeopardizing or adding to Medicaid’s assistance by creating a Supplemental Special Needs Trust (SSNT). The primary feature of the trust is that its assets will not ‘count’ as resources of the disabled beneficiary under the qualifying needs tests applied by Medicaid or SSI. The SSNT was created to not undermine the qualifying needs of its beneficiary – your child- for Medicaid or SSI. It’s used so it doesn’t represent an asset owned or controlled by your child. So, be sure to make use of a qualified lawyer so that the trust will be used and administered in strict compliance with federal and state laws. The trust should explain that the trustee is directed only to make distributions for the “supplemental” or “special” needs of the beneficiary or as long as the distributions don’t disqualify the beneficiary from governmental benefits. In reality, the trustee should be specifically prohibited from making distributions which provide the beneficiary with food or shelter which are the 2 disqualifying categories under SSI and Medicaid regulations. You are able to choose yourself (as long as you’re living), another child or even a corporate trustee to manage the trust’s funds and make disbursements to provide items that Medicaid doesn’t cover – like better dentist hilliard, books, a pet, clothing, a haircut, music lessons or time at the movies. The trustee may also hire someone case manager, a therapist or even a friendly companion to re-create some of the human contact and support family members provided if they had the ability. Select a trustee who’ll show the compassion toward your youngster that you would. *How to finance your Supplemental Special Needs Trust: First, determine the amount of funding your SSNT will need. If you’re able to arrange to finance it with assets you have, that’s fine. You may want to supplement that in part or wholly by proceeds from a life insurance coverage. You are able to choose from term or permanent life insurance coverage. Whole life is an effective option since its policies have premiums that never rise plus they build up cash value. Policies with a cash value allow parents or guardians to borrow from these savings in an emergency. They may utilize it to buy a needed machine or specialized therapies for the child. Again, be sure to make use of a lawyer to draw up the trust provisions. It’s best to have the trust put up as a revocable trust to guard any assets you wish to use for the supplemental needs trust. As a trust it’ll bypass the delay that probate can produce so it can begin helping your youngster immediately after you die.