Which Medicare Health Plan is for You?

Protecting Your Legacy

We work hard over a lifetime to build a financial legacy. Your legacy may entail property, business endeavors, investments and retirement accounts, collectibles and jewelry, just to name a few.

The details look different for everyone, yet we all have a need to plan for what happens with everything we’ve worked hard for when we pass it on to our spouse, children, other family members, or friends. Unfortunately, if we don’t have a plan the state has one for us.

Two of the biggest concerns may be providing for a loved one with a disability or special need and how to ensure any gift you hand down is used in the manner you intend.

First, when you have loved ones with disabilities a lump sum from an inheritance could impact their ability to receive care. If they are accessing disability benefits (typically based on resources) inheriting a large amount of money can upset the balance of their accounts and kick them off existing benefit plans. Having a Special Needs Trust (SNT) as part of your comprehensive estate plan can protect any inheritance received by individuals with disabilities, allowing them to access funds for things the government wouldn’t otherwise pay for through public benefits. A SNT puts the trustee of your choice in the role of gatekeeper, allowing the individual named to ask for financial support and be provided for without having an inheritance dwindle unnecessarily. Choosing a compassionate, financially wise person for this role is crucial. A second way to protect your beneficiaries and ensure your financial legacy doesn’t end up part of a divorce settlement, used for an addiction, or spent when creditors come calling, is creating a heritage trust (a specific type of Dynasty Trust). Setting up heritage trusts for your beneficiaries can preserve your financial legacy for multiple generations; protecting what you give your children (or grandchildren) from their creditors, lawsuits, divorce, and in some cases even estate taxes.~

Editor’s Note: This article was submitted by Andrew P. Stone, Esq., the principal attorney with Stone Law, LLC and may be reached at 877-897-6591 or by email at andrew@stonelawllc.com. See ad on facing page.