Over 54 million adults and children in the U.S. have a disability. The concerns of parents of disabled children are the same for most any parent — ensuring that their children are safe, happy and live a meaningful life.
Some children may be unable to earn a living. Both the federal and state governments understand this and provide benefits so that they receive food, shelter and medical care. Many of these benefits are “means tested,” meaning that the child cannot have much in terms of assets and cannot make much in terms of income. If the child inherits assets from the parents, these benefits will discontinue and the child must expend all of the inheritance before reapplying for benefits.
To qualify, some parents think that they must disinherit their children so that they can continue to receive benefits or entrust another family member to manage money for the child. The better alternative is the Supplemental Needs Trust. Properly written and administered, this trust allows parents to leave the child their inheritance and allows the child to continue to receive benefits. The trust instructs the trustee to use assets from the trust for the child only over and above what the child receives in benefits.
The Heartfelt Legacy Foundation will hold a Supplemental Needs Seminar featuring nationally recognized speaker Theresa Varnet, Esq. Visit the foundation’s website for more information.
HEARTFELT LEGACY FOUNDATION (501(c) 3 nonprofit)
Stephen B. Yim, Attorney at Law
2054 S. Beretania St., Honolulu, HI 96826
808-524-0251 | www.stephenyimestateplanning.com