The primary reason why families with children with special needs create an estate plan is to ensure the beneficiaries receive the proper care when the primary caregiver is no longer able to provide that care themselves. However, government assistance programs have limits as to the assets a child with special needs can have before being declared ineligible for Medicaid and Supplemental Social Security Income (SSSI). Therefore, parents need to come up with a strategy that does not affect the child’s eligibility for receiving benefits. This is where a special needs trust comes in. With a special needs trust, inheritance does not go to the beneficiary’s name, but to a trust operating for the benefit of that child. By using a special needs trust as part of an estate plan, beneficiaries can receive inheritances, gifts, or other funds, while also maintaining the beneficiary’s eligibility for government assistance programs. A special needs trust is drafted in a manner that it will be treated as an entity separate from the person with special needs. Creating a special needs trust in a way that it doesn’t disqualify a beneficiary from government assistance programs requires unique approaches. As a result, it’s vital to work with a professional special needs estate planning in Michigan to protect your child in the event of death or incapacity. The government allows assets to be held in a third-party special needs trust to provide supplemental financial resources for the beneficiary. This trust holds any assets belonging to the caregiver, family member, or other individuals, including stocks, bonds, houses, and other investments.