Estate Planning Oversight: Safeguarding a Disabled Beneficiary

by | Feb 21, 2024

Do you, or someone close to you, have a child currently receiving Medicaid, Social Security, or other forms of government assistance? If so, it’s crucial to recognize that a disabled beneficiary faces the risk of losing eligibility for these benefits upon receiving an inheritance.

Options Exist, So Don’t Worry!

Safeguarding a Disabled Beneficiary

For those with a loved one who could be disqualified from government assistance, consider the following options:

Missouri ABLE (Achieving a Better Life Experience) accounts:

  • To qualify for an ABLE account, two criteria must be met:
    • The individual must have a qualifying disability.
    • The qualifying disability must have commenced before the age of 26.

Benefits eligibility is preserved through the ABLE account while providing funds for the beneficiary. Additionally, the ABLE account can retain significant funds, exempt from the beneficiary’s SSI resource limit.

Special Needs Trust:

  • A Special Needs Trust, approved by Medicaid, is an irrevocable trust that safeguards the beneficiary’s eligibility for Medicaid. Establishing a Special Needs Trust ensures that your beneficiary can receive an inheritance without jeopardizing Medicaid eligibility. While there is no monetary cap on a Special Needs Trust account, specific restrictions are in place to prevent disqualification from benefits.

Determining What’s Best for You:

Discover the most suitable option for you and your loved ones by scheduling your initial consultation online today! Alternatively, reach out to our office at 816-399-2757 to explore your choices with one of our knowledgeable attorneys!