What To Do If You Cannot Afford Out of Pocket Services for A Special Needs Child?

A special needs child will eventually grow up, but may still rely on important government programs and other forms of assistance to survive and thrive. Someone who has severe impairments may incur significant costs for health care, upwards of $100,000 per year.

Understanding Special Needs Trusts

Depending on the level of a person’s impairment, many families are unable to fund these services during their lives or even after their passing. It becomes extremely important to protect the rights of that disabled party to receive valuable government benefits, such as Medicaid. SSI and Medicaid recipients are allowed $2,000 in liquid assets and limited income, which means it can be a huge mistake to make an outright gift to a loved one who has special needs.

Setting Up a Special Needs Trust

Sheltering assets inside a special needs trust under the guidance of an experienced and knowledgeable estate planning lawyer can be one of the best ways to ensure that your loved one has access to necessary funds without obliterating their opportunity to receive critical government benefits too.

Working with Estate Lawyers in Massachusetts

The support of estate lawyers can be instrumental in answering many of the key questions associated with special needs trusts and ensuring that the right decisions have been made around how to proceed with special needs trust planning. If you and your loved ones have further questions, consider evaluating third party trusts versus first party trusts. An estate lawyer in MA can help you to clarify which is more appropriate for your individual situation.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. For legal advice specific to your situation, please consult with a qualified attorney.

About Tiffany A. O'Connell, JD, LLM, CELA, AEP

Tiffany A. O'Connell, JD, LLM, CELA, AEP is the CEO and Founding Partner of O'Connell Law, an estate planning and elder law firm serving clients across Massachusetts, New Hampshire, and Vermont. She is one of a select group of attorneys in Massachusetts certified by the National Elder Law Foundation as a Certified Elder Law Attorney (CELA). Tiffany focuses her practice on estate planning, trust and probate administration, Medicaid planning, long-term care planning, Alzheimer's planning, charitable planning, and retirement and wealth strategies. She has been helping families plan for their futures since opening her practice in 2010.

Credentials: JD, LLM, CELA (Certified Elder Law Attorney — National Elder Law Foundation), AEP (Accredited Estate Planner)

Licensed in: Massachusetts

Areas of Practice: Estate Planning, Elder Law, Medicaid Planning, Probate & Trust Administration, Alzheimer's Planning, Asset Protection

View all posts by Tiffany A. O'Connell, JD, LLM, CELA, AEP →

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. For legal advice specific to your situation, please consult with a qualified attorney.