Jenny’s life was a balancing act—filled with moments of laughter and love, but also shadowed by the worry of what would happen to her son Michael, who was born with special needs, when she was no longer around. Michael had always been her priority. She ensured he had access to the best education, therapies, and care. But as Jenny grew older, a gnawing fear settled in. What would happen if she wasn’t there to safeguard his future?
One afternoon, over coffee with a friend, the term “Special Needs Trust” came up. Jenny listened intently as her friend explained how these trusts were designed to protect children like Michael. The idea of providing for him without risking the government benefits he depended on struck a chord, and Jenny reached out to Skipton Law.
A Special Needs Trust (SNT) is more than a financial tool—it’s a promise to protect your loved one’s quality of life. These trusts allow families to set aside funds specifically for the care of a loved one with disabilities while ensuring they remain eligible for critical programs like Medicaid and Supplemental Security Income (SSI). Without an SNT, even a well-meaning gift or inheritance could inadvertently disqualify someone from these benefits, creating unnecessary hardship.
Jenny’s journey into estate planning revealed a labyrinth of rules and regulations. Funds in an SNT must be used exclusively for the beneficiary’s supplemental needs—expenses like medical care, education, or transportation—not for basic necessities covered by public benefits. With the guidance of experienced professionals, Jenny was able to craft a trust that guaranteed Michael’s security and independence.
But the story doesn’t stop with the trust. Beneficiary designations on life insurance policies, retirement accounts, and other assets must also be updated to align with the estate plan. Jenny learned that naming Michael directly as a beneficiary could unintentionally cause more harm than good. Instead, those designations now point to the SNT, ensuring seamless financial support for her son.
The historical development of SNTs highlights their importance. Before these trusts were legally recognized, families often faced heartbreaking choices between financial support and government assistance. Today, SNTs stand as a testament to the power of thoughtful planning.
Jenny’s love for Michael shines through her actions. By taking the time to plan, she’s ensured he’ll always have the care he deserves. If you’re ready to take the next step in protecting your loved ones, register for a workshop today.