Many Colorado families have aging family members, adult children who have a disability or a spouse with a disability. Individuals want to ensure that their loved ones are cared for after their deaths, but they also want to be sure that these special needs family members remain eligible for government benefits and assistance such as Medicaid. The way to do that is to create special needs trusts.
No one can predict when a serious illness or injury will strike. A neighbor had a heart attack at 40 - she was fortunate to recognize the symptoms and get help. Another neighbor who just celebrated his 80th birthday is still recovering from a debilitating stroke.
In the last couple of months, we have touched on a lot of topics pertaining to trusts. Today, we want to talk about one specific type of trust that can benefit many families: a special needs trust, or supplemental needs trust. If your child has a disability, planning your estate can be difficult. Obviously you want to leave parts of your estate for your child so that he or she will benefit from them -- but what is the most effective way to do that?
In its simplest form, estate planning is all about your family. The plan is to draw up conclusive and definitive rules that dictate how all of the assets you have accumulated over your life will be passed on to your family members and loved ones. It's so simple! But, obviously it isn't. A lot goes into planning your nest egg and how that nest egg is handled upon your death.