Nearly one in ten families in the United States copes with disabilities. Without proper planning, a family member with special needs could lose valuable government benefits and other services. Our goal at Morris, Hall & Kinghorn is to ensure that individuals plan for the future to protect their families from some of the financial difficulties that can emerge with the loss of a loved one. Families dealing with special needs face unique challenges when planning for the future.

The primary advantage a special needs trust offers over a direct gift or inheritance is that, if arranged properly, the assets in the trust do not actually belong to the beneficiary. In this way, the trust can provide benefits to an individual but not cause the individual who is disabled to be disqualified from government programs. A special needs trust holds title to property for the benefit of a child or adult who has a disability. The special needs trust can be used to provide for the needs of a disabled person and to supplement benefits received from various governmental assistance programs.

Special needs trusts typically provide for:

• medical and dental expenses

• eye glasses

• transportation

• maintenance

• education

• insurance

• rehabilitation

• essential dietary needs

Special needs trusts also can hold cash, stocks, personal property and real property. It can own and/or be the beneficiary of life insurance. Special needs trusts also can be used to protect personal injury settlements or judgments from jeopardizing government benefit eligibility. Most importantly, special needs trusts can help parents coordinate their estate plans and provide peace of mind that their children will be provided for.