Klenk Law

I want to leave my Special Needs Child money when I die, but I don’t want to disqualify her for Medicaid. What can I do?

Posted on Sat Dec 26, 2015, on Special Needs Estate Planning

Updated Sun. Sept. 10th, 2017: How to Leave a Special Needs Child Money.

How to leave a Special Needs Child Money

Peter Klenk, Special Needs Trust Attorney.

From our “Ask a Question” mailbag: “My adult daughter is a Special Needs Child with Downs Syndrome who has always lived in Burlington County, New Jersey. She will likely always live here and always need care. She is currently eligible for and using Medicaid. When I die, I want to leave her some money, but I don’t want to disqualify her for Medicaid. How to leave a Special Needs Child Money?”

An Inheritance can Disqualify Your Child From Receiving Medicaid.

Your daughter is now eligible for Medicaid because she has little or no money of her own.  Medicaid disqualification results if you die and leave her money. Further, you won’t be around any longer to use her inheritance for her care nor to reapply for Medicaid once the legacy is gone.  Regular New Jersey Irrevocable Trusts are excellent tools for protecting your child from creditors. But, this same trust would still disqualify your child from Medicaid. 

How to Leave a Special Needs Child Money Without Medicaid Disqualification.

To address your situation, Congress passed laws allowing you to set up what is called a “Special Needs Trust” for your daughter. You can do this now, while you are alive.  Or, you can fund a Special Needs Trust using your Will after your death. The trust must follow the rules set up by Congress so the assets “supplement” your daughter’s care but do not “supplant” what government programs provide. When properly drafted, the trust funds can provide your little girl with the extra things that the government program does not provide, but she remains eligible for Medicaid.

Be Careful!

Remember, the Special Needs Trust must satisfy the statute. Have your trust drafted by an experienced, Special Needs Trust Attorney.

See my website for more information about Special Needs Estate Planning or Special Needs Trusts,

In conclusion, I would be happy to answer any further questions you have, feel free to contact our office for a free consultation.

Peter Klenk, Esq. Special Needs Trust Attorney.

Tags:

Burlington County, Down Syndrome, Estate Planning, New Jersey, Special Needs Child, Special Needs Estate Planning, Special Needs Trust, Trusts

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