How can helping someone hurt them? By leaving a child or a loved one a gift in your Will, could you really be causing them more problems?  The answer is yes.

If you have a loved one with special needs that is receiving some type of government assistance, giving them an out outright bequest or gift in your Will may cause them to lose those benefits.  That means that they may lose their housing or other medical benefits until the value of the gift is spent down, and then they may need to re-qualify for those benefits all over again.

If you want to leave some type of gift to a person with special needs, you should set up a Supplemental Needs Trust in your Will.  This will allow you to name a Trustee to pay for some additional things that your special needs loved one might need which are not covered by regular government assistance, and the gift will not be counted as part of the loved one’s estate that would cause them to lose benefits.

If you have questions about Supplement Needs Trusts, please give us a call.


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