Lucy and Roger have always taken care of their 45 year old daughter, Alexis. She has never worked, is “developmentally disabled” and receives SSI (Supplemental Security Income). A few years ago Roger was diagnosed with dementia. His health has deteriorated to the point where Lucy can no longer take care of him. Now that she has placed Roger in a nursing home and is paying over $7,500 a month out of their savings, she is worried that there will not be any money left over for the care of Alexis.
According to the information she got from a social worker at the nursing home, Roger is $75,000 away from being eligible for Medicaid. Lucy wishes that there was a way to save that $75,000 for Alexis. Fortunately, there is.
Lucy consulted with an Elder Law attorney to set up a special needs trust with the $75,000 to provide for Alexis. As soon as she does, Roger will be eligible for Medicaid benefits and Alexis won’t lose her SSI.
Of course, the trust must comply with Medicaid rules. An experienced elder law attorney can help draft a special needs trust to ensure that Medicaid benefits won’t be denied and that SSI benefits won’t be lost with the creation of the trust.