Living with a disability can be financially challenging, especially when you rely on income-sensitive government programs to support yourself. Although these resources can help cover basic living and medical costs, they don’t pay for much else. Fortunately, when you have a special needs trust, there is a way to pay for some of your extra expenses without endangering your benefit eligibility. However, for this support to last, you need to make efficient use of your resources with a special needs trust.
What is a Special Needs Trust?
A special needs trust is a unique device that can be funded for the benefit of an individual with a disability by the beneficiary or another party. The funds can be used to pay for certain expenses without being counted as income to the recipient. Because the trust disbursements are not considered income, they do not impact his or her eligibility for programs like Social Security Income (SSI) or California Medicaid (Medi-Cal). The trust payments are supposed to be for things that improve the beneficiary’s quality of life. For example, trust payments can be made for items such as travel expenses, furniture, computer equipment, clothing, and health club memberships.
Using Resources Wisely
When your trust is well-funded and managed prudently it can be a sustaining resource throughout your life. However, if you demand trust payments too often or in too great a quantity, you could end up depleting your funds. Your special needs trust is there to make your life better, but it’s essential to make sound spending decisions and to be practical. For instance, if you just bought a new living room set, waiting a few years rather than months to replace the contents would be sensible. Likewise, if you recently took an expensive vacation, holding off several months for the next one may also be a good idea. Whatever your situation, when you are mindful of your spending habits and make an effort to live within your means, you can help your special needs trust last longer.
A special needs trust can be a vital asset for your comfort and care. At the Law Offices of Alice A. Salvo, we have the California special needs trust experience you need to help you plan for your financial needs today and in the future. Please contact us online or by phone today to start your solution.