If a person with a disability inherits money or property, in the absence of special funds, the government allowance can be reduced or eliminated, because the person has the amount allowed to receive the benefit.
What can special needs trust do?
Families can invest money, property, and other assets in a trust instead of handing it over to a disabled person. An incapacitated person will be identified as a trustee and a trustee will be appointed to spend money on behalf of your loved ones. To know more information about special needs trust in Arizona, you can visit elderlawofaz.com/special-needs-planning.
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Trust funds can be used to cover expenses that exceed government benefits your loved ones receive, such as vacations, travel, entertainment, medical and dental expenses that you have to pay for yourself, and so on.
A First Party Supplemental Needs Trust
Trust for Additional Needs of the First Party is an irrevocable trust that can be formed for persons with disabilities under the age of 65 from the assets of persons with disabilities.
If the money doesn't go to the First Party Special Needs Trust, government benefits such as Medicaid will be suspended and people with disabilities will have to pay their medical bills of earned wealth until they spend up to an estimated $14,400 wealth limit.
Funds from the trust must be spent on behalf of persons with disabilities, and the language of the trust must contain provisions allowing state agency Medicaid to reimburse the remaining trust funds up to the amount spent on persons with disabilities.