If you have a loved one with special medical needs, then you’ll want to find a way to provide for them when you’re gone. You might be able to this by creating a special needs trust, but there’s often a lot of confusion surrounding what this trust can and can’t pay for. That’s why in this post we wanted to provide some clarity.
What a special needs trust can cover
Special needs trusts can cover a wide swath of expenses that your loved one will experience as time goes on. This includes:
- Medical equipment
- A vehicle
- Rehabilitation services
- Medical services not covered by insurance
- Furniture
- Recreational activities
- Personal entertainment
- Electronic equipment, such as a computer
- Insurance
- Vacation
That covers a lot of their expenses and can provide them with a robust and stable life without jeopardizing their ability to qualify for government programs like Medicaid.
What a special needs trust can’t cover
As with all estate planning tools, a special needs trust has its limitations. This includes not covering:
- Payments for housing
- Grocery expenses
- Utility bills
- Property taxes
- Gift cards
Although some of these are major expenses, you may be able to help your loved one with these expenses in other ways. That’s why it’s crucial that you know how to create a cohesive and comprehensive estate plan that helps you meet your goals.
Procrastination is the enemy when creating your estate plan
Although you need to take the time needed to educate yourself on your estate planning options, you don’t want to wait too long before creating the plan that’s right for you. Procrastination puts your estate at risk of being inherited by the wrong people and in the wrong way. Don’t let that happen. Get to work now developing the effective estate planning strategy that you need so that your assets and your loved ones are protected as you see fit.
