How can I provide my child with some money for financial security and not jeopardize his SSI or Medicaid benefits?
There are ways that you can help ensure a disabled family member’s financial security without risking the possible loss of SSI and related benefits. The best tried and true method is by using a Special Needs Trust, which is sometimes known simply as an “SNT”. A Special Needs Trust can hold money or property that the grantor (that is, the person who sets up the Trust) leaves for the benefit of a disabled beneficiary, such as a child. Unlike an outright gift or inheritance left to a disabled individual, gifts to or inheritances received by a Special Needs Trust are not counted as the disabled child’s assets for purposes of qualifying for SSI or Medicaid, and therefore the assets are protected and can be used for the supplemental needs of the disabled beneficiary. Once the assets are in the Special Needs Trust, the Trust document contains detailed instructions as to when and how the assets can be used for the disabled beneficiary. A family member or others can set up a Special Needs Trust
