You may have heard the term “special needs” in a variety of contexts. You may have even heard of special needs in the estate planning context. This is because there are several critical aspects of estate planning that should be addressed when planning for a person or a loved one with special needs. There are specific legal tools that can be utilized to help ensure an individual with special needs received the necessary and continued care upon which he or she relies. What however, does “special needs” actually mean? We will talk about that more here.
What Does Special Needs Mean?
Special needs generally refers to a person that has either a mental, emotional or physical disability. As a result of his or her disability, the individual may need extra assistance with things such as movement, communication, taking care of himself or herself, and making decisions. Essentially, special needs means it has been determined that a person requires special attention and needs special assistance that others do not.
What Causes Special Needs?
Special needs may arise due to a variety of illnesses, both chronic and terminal, as well as physical impairments and cognitive or psychiatric issues. The designation of special needs can become relevant in a number of circumstances. For instance, the government may use special needs status to qualify an individual for benefits and certain forms of government assistance. Additionally, those guardians of individuals with special needs can often access tax credits or deductions to help offset the additional costs they face in providing the necessary care to the individual with special needs.
Those individuals with special needs may require assistance and additional medical attention in order to maintain a certain quality of life. The costs associated with such care, however, can be extensive. Regular medical care, monitoring, treatment, and support equipment can add up. Fortunately, government benefits may be available to those with special needs. These, however, often only cover the minimum and allow little room to fund things that will improve quality of life above a sort of baseline.
Why Are Special Needs Trusts Important?
Loved ones often want to provide funds to help improve the quality of life for an individual with special needs, but they face the potential problem of jeopardizing need-based government benefits the individual may be receiving. That is why special needs trusts were developed.
A special needs trust allows a person to provide financial support for a person with special needs without risking the loss of government benefits upon which the special needs individual may depend. This is because funds held in a properly structured and administered special needs trust are not taken into account when need-based government benefits are calculated.
Estate Planning Attorney
Do you have a loved one with special needs? If so, Monk Law is committed to providing you with sound legal support to help you provide for him or her without risking the loss of critical government benefits. Contact Monk Law Firm today.