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It can be difficult for adults with disabilities to live independently. This is because they may not have the skills or ability to care for themselves. In some cases, they may also need help managing their finances. That’s where trust comes in. A trust is a legal document allowing someone else to manage your affairs if you cannot do so yourself. We will discuss the importance of having trust and how it can benefit adults with disabilities.
1. Aids in the Management of Your Assets
If you have a trust, you can specify how you want your assets to be used. For example, you can use the trust to pay for your medical expenses or to provide income for your support. This can be helpful if you become disabled and are unable to work. The trustee can use the trust funds to pay for your care and support as specified in the trust document.
Trusts can also be used to manage property or other assets. For example, the trustee can manage the property if you own a home. This can include paying the mortgage, taxes, and insurance. Trusts can also be used to hold investments such as stocks and bonds.
2. It Can Help You Qualify for Government Benefits
If you have a trust, you can protect your assets from being counted when determining if you are eligible for certain government benefits. For example, if you have a disability and need to apply for Medicaid, your assets will not be counted towards the eligibility requirements if they are in a trust. This means you can still qualify for Medicaid even if you have significant assets.
A trust may be used to protect your eligibility for Supplemental Security Income (SSI). SSI is a needs-based program that provides cash assistance to disabled people with low incomes. If you have money in a trust, it will not be considered when determining your eligibility for SSI benefits.
3. Can Control How Your Assets Are Used
When you have a trust, you can specify how and when you will use your assets. For example, you can use the trust to provide income for yourself or your family. You can also use it to pay for specific expenses, such as medical bills or education costs. And, if you have minor children, the trust can be used to provide for their care and support until they reach adulthood.
4. Helps Reduce Taxes
Trusts can also minimize the taxes you or your beneficiaries must pay. For example, if you have a disabled child, you can use a trust to provide for their care without incurring any estate or gift taxes. Trusts can also be used to distribute assets to your beneficiaries over time. This can help reduce the overall tax liability for your estate.
Getting trust is an important decision that should not be taken lightly. However, if you have assets that you want to protect, a trust can be a valuable tool. If you have questions about trusts or other estate planning options, we encourage you to speak with a special needs trust attorney. They can help you understand how to protect your assets and provide for your loved ones.
5. Provides for Your Care If You Become Disabled
If you become disabled, a trust can be used to pay for your care and support. The trustee can use the funds to pay for your medical, housing, and other necessary expenses. This can help ensure you have the necessary resources to live as independently as possible.
6. Can Help Your Family If You Die
If you die, a trust can be used to provide for your family. The trustee can use the funds to pay for your funeral and burial expenses. And, if you have minor children, the trust can be used to provide for their care and support.
A trust can also distribute your assets to your beneficiaries over time. This can help reduce the overall tax liability for your estate.
Conclusion
A trust can be a valuable tool for protecting your assets and providing for your loved ones. If you have questions about trusts or other estate planning options, you must speak with an attorney. They can help you understand how to protect your assets and provide for your loved ones.
