By Rena A. Ballard and Andrew J. Kelleher, Kelleher + Holland, LLC
Families who have (i) loved ones with physical, mental, developmental, or behavioral disabilities, or (ii) aging family members with nursing home or long-term care risks, face unique challenges to secure adequate care, support, and asset preservation. Certain planning strategies can be implemented to protect the welfare and financial stability of such vulnerable persons. In addition to traditional estate planning, it is important to recognize the significance of both special needs planning and Medicaid planning.
Special needs planning involves creating a tailored legal and financial strategy to provide for the unique needs of individuals with physical, mental, developmental, or behavioral disabilities. This planning may include the establishment of a special needs trust, which allows families to set aside funds for the benefit of their loved ones without jeopardizing eligibility for government benefits like Medicaid and Supplemental Security Income (SSI). These trusts can cover various expenses, including medical care, therapy, education, recreational activities, and in certain circumstances, housing, which can enhance the quality of life for individuals with disabilities.
Moreover, special needs planning for children goes beyond financial planning. It involves considering a holistic care plan that encompasses the child’s unique needs, preferences, and aspirations. This may involve planning for suitable educational programs, therapeutic interventions, assistive technologies, and support services to nurture the child’s growth and independence.
Medicaid planning is a strategic approach to managing assets and income to address eligibility for Medicaid benefits while maximizing assets and other resources for an individual’s care and support. While traditionally associated with low-income individuals and families, Medicaid planning is relevant to a much broader demographic, including seniors facing long-term care needs and individuals with disabilities. However, navigating Medicaid eligibility requirements can be complex, and without proper planning, individuals risk losing access to these critical benefits.
One of the primary reasons Medicaid planning is essential is its role in covering long-term care costs, which can be exorbitant. Nursing home care, assisted living facilities, and in-home care services may not be covered by Medicare or private health insurance plans. Without proper planning, individuals may quickly exhaust their savings to cover these expenses, leaving them financially exposed.
Medicaid planning can be an essential part of an estate plan that allows preservation of assets for the present, as well as for future generations, while protecting access to the care and support one may need now.
Furthermore, Medicaid planning provides peace of mind and security for individuals and families facing medical crises or chronic health conditions. Knowing that they have access to Medicaid benefits can alleviate financial stress and allow individuals to focus on their health and well-being.
For families navigating the complexities of special needs and Medicaid planning, seeking guidance from knowledgeable professionals is essential. Attorneys who are experienced in this area can provide invaluable support, helping families develop personalized plans tailored to their unique circumstances. By implementing these strategies early and revisiting them regularly, families can ensure their loved ones have the support they need to thrive.
Kelleher + Holland, LLC is a full-service law firm with 60+ legal professionals in North Barrington. For assistance with special needs or Medicaid planning, contact Rena Ballard or Andy Kelleher directly at (847) 382-9195 or kelleherholland.com.