Special Needs Trusts in Hilton Head, SC
Many people in Hilton Head, SC rely on Medicaid for their health care and long-term care needs. Special needs trusts are an important planning tool used in family law practices to help these individuals preserve their eligibility for Medicaid benefits. Use of Special Needs Trusts in Hilton Head, SC is more common than many people realize. Special needs trusts are used in almost every family that has a disabled family member provided the proper legal advice has been obtained.
A special needs trust is a legal planning mechanism that preserves eligibility for SSI and other needs based programs while providing additional assets for the use and benefit of the beneficiary.
There Are Two Types of Special Needs Trusts in Hilton Head, SC
First party or self funded trusts or third party trusts. A first party or self funded trust is funded with assets that belong to the beneficiary of the trust or assets he or she has legal rights to. Excess assets that would normally disqualify an individual from receiving SSI or Medicaid eligibility can be transferred to a first party special needs trust. This special needs trust in Hilton Head, SC can be used throughout the individual’s lifetime for his or her supplemental needs, but upon his or her death, any state which has provided Medicaid funding must be able to reimburse itself for any Medicaid funds paid for his or her benefit during his or her lifetime.
Examples of funds or assets that can be transferred to a first party special needs trust include personal injury settlement funds, child support, UTMA accounts or other savings or windfall received by a person with a disability.
A third party special needs trust is funded with assets belonging to a parent, grandparent, other relative or friend of the family. As long as a third party special needs trust is properly funded and administered, there is no payback to the state for the cost of the care and the funds in this type of trust can pass to the named beneficiaries- often other family members or charities.
One important area of family law is helping those in need to preserve assets and at the same time qualify for benefits that maintain the financial security of the family. The Matyushevsky Law Group works hard for those in need.
Watch this video to learn more about Special Needs Trusts in Hilton Head, SC
For More Information, Call the Matyushevsky Law Group, LLC today
Matyushevsky Law Group, LLC
11 Palmetto Pkwy #104,
Hilton Head Island,SC 29926