In light of the recent concerns regarding the Covid-19 virus, protecting our clients and their legacies remains our most important focus.
We are encouraging all current and future clients to meet with us via phone or video conference. Please contact our office to discuss your options.

We Help Make People's Lives Easier in Times of Crisis

Don’t Jeopardize a Beneficiary’s Eligibility for Government Benefits

| Jul 1, 2014 | Blog Posts |

If you want to steer money to a beneficiary with special needs, be very careful. Anyone who receives more than a small cash gift will lose important government assistance-for example, Medicaid coverage that’s crucial for a beneficiary who will never have a job that offers health insurance. Under current law in most states, you cannot receive Supplemental Security Income or Medicaid if you have more than $2,000 in “countable” assets (not all assets are counted for purposes of eligibility).

You can, however, create what’s called a special needs or supplemental trust for the person with a disability, and name the trust as beneficiary of your life insurance policy. A property drafted special needs trust will let the trustee (the person you choose to manage trust funds) use the proceeds for the beneficiary, without jeopardizing eligibility for benefits.

Categories

Archives

Badge Dept Veterans Affairs Badge Naela
Badge State Bar California Badge Wealthcounsel
Badge Fpa