If you are a Special Needs Person receiving government benefits like Supplemental Security Income (SSI) and you inherit money, the result can be devastating. If you inherit more than the amount of allowable assets to qualify for assistance, you may lose your government benefits completely. This may cause you to lose your healthcare insurance and prevent you from receiving support services necessary for activities of daily living. Additionally, you may have to give the inherited money to the government to pay back the benefits you received in the past. This could leave you without an inheritance or benefits and faced with the prospect of reapplying for SSI.
How can you avoid this? By educating your friends and family about the importance of special needs trusts and advance planning. If a family member wants to leave money or property to you, talk to an attorney about setting up a Special Needs Trust. A properly drafted Special Needs Trust will allow you to continue to receive SSI while also providing “supplemental” money to enhance your overall quality of life. For more information, call 704-887-5242.