Individuals who qualify for certain public benefits such as Supplemental Security Income (SSI) and Medicaid must maintain their eligibility under the programs’ income and resource rules to continue to receive these benefits. These eligibility rules are complex. In sum, the individual’s access to excess funds must be very limited to maintain eligibility for their public benefits. An inheritance received through someone’s Will, or a Trust, could cause the individual to lose their benefits.
Social Security and Medicaid have rules that allow a person to save an inheritance while maintaining their eligibility for these programs. However, these rules are specific. Structuring the inheritance is key. One way to do this is to create Trusts or modify existing trusts so that it does not count as a resource to the individual under program rules. In Texas, a beneficiary under a Will or Trust can modify the terms of an existing Trust so that they can maintain their eligibility through the use of a Special Needs Trust (supplemental needs trust). Depending on the inherited trust terms, Trust Modifications could be done with an amendment to the Trust document. Otherwise, an inherited trust can be modified and converted to a Special Needs Trust through a court proceeding if all necessary parties are agreed. Law Office of Adriane S. Grace, PLLC assists clients with modifying Trusts, including testamentary Trusts in a probated Will, to qualify as a Special Needs Trust.
The information provided on this page is for educational purposes only and is NOT legal advice. You should consult a Guardianship attorney if you have any questions about the information contained on this page or about your particular circumstances or those of someone you know.
Why Law Office of Adriane S. Grace, PLLC?
Personal and Attentive Legal Representation — Attorney Adriane S. Grace listens to her clients and personally advocates for them. She will take the time to understand your legal issues and create a plan of action that fulfills your goals.
If you are in the Frisco, Texas area and need an estate planning, probate, guardianship or social security attorney, contact Adriane S. Grace today for a consultation. She is available for legal consultations by telephone or video conference.
Adriane S. Grace accepts estate planning, probate, guardianship, and social security legal matters in Frisco, Plano, Prosper, Allen, McKinney, Celina, Denton, Carrollton, Little Elm, The Colony, Lewisville, Cross Roads, Aubrey, Pilot Point, Oak Point, Richardson, and Dallas.*
*The main office for Law Office of Adriane S. Grace, PLLC, is located in Frisco, Texas. All office locations are by appointment only.