Estate planning is important for all residents of Kansas City, but especially so for those who have a beneficiary withspecial needs. In these situations, an estate plan needs to be carefully tailored, so that the creator’s chosen beneficiary does not lose the important government benefits they need.

Many individuals with special needs receive Medicaid. In order to receive Medicaid, certain asset and income qualifications must be met. If a person receiving Medicaid receives a substantial inheritance that raises his or her net worth, it is possible that he or she will no longer qualify for Medicaid.

However, a special needs trust is one type of trust that would allow a Medicaid recipient to keep his or her Medicaid benefits, all while still receiving an inheritance. Specifically, pooled trusts, third-party trusts and self-settled trusts may be valuable to those who wish to pass their assets down to a Medicaid recipient. In these situations, it is not the beneficiary but the trust that owns the property in the trust, and distributions are then made to the beneficiary.

The attorneys at Stockton Law Office are familiar with the estate planning needs of those with beneficiaries who have special needs. They have extensive experience creating trusts that will help these individuals pass down their assets to their chosen beneficiaries, without causing the beneficiary’s Medicaid benefits to cease. The firm has a special needs trust overview that may provide Kansas City residents with more information about special needs trusts and how they may affect a beneficiary’s Medicaid benefits.

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