Trusts are legal documents designed to control the transfer and management of one's assets. When a person has a trust, a trustee is appointed to hold investments, real estate or other property for the benefit of one person or multiple people. A wide range of trusts are available in Maryland to help people accomplish many goals; for instance, they can help people preserve their valuable assets, reduce their taxes or even avoid the need to go through the complex process of probate. One helpful type of trust is the special needs trust.
A special needs trust is also known as a supplemental needs trust. Its purpose is to provide for a disabled adult child's supplemental needs. The trust can do this while still preserving the person's eligibility to receive Medicaid and Supplemental Security Income, or SSI, benefits.
The rules concerning special needs trusts are complicated. Unfortunately, one misstep may cause someone to lose his or her highly needed Medicaid and SSI benefits. Once these benefits are lost, they are hard to regain.
An attorney can help you to understand the many types of trusts available and determine which type is most appropriate for your family's situation. If you do decide to set up a special needs trust, the attorney can review your situation in detail and create the specific trust that will provide for your adult child's needs. The attorney will make sure that this trust complies with the law and will allow your child to keep his or her SSI and Medicaid benefits in Maryland.