Providing for the Care of a Disabled Child
Barbara and Mark, a married couple in their mid-50s, received a large inheritance from Barbara’s aunt. Their first thought was to use the money to make sure that their 24-year-old son, Philip—who has been disabled since birth and is unable to care for himself—would be provided for after they were gone. But they had some additional concerns.
Philip’s disability qualified him to receive monthly payments from two government entitlement programs: Medicaid and Supplemental Security Income. If part of the inheritance was transferred to Philip’s name, however, he could lose his eligibility for continued payments; the assets would then have to be spent down to less than $2,000 for him to re-qualify.
Barbara and Mark turned to SunTrust for wealth preservation strategies. Their Private Wealth Management advisor introduced Barbara and Mark to a trust specialist on the team who, along with an outside attorney, created a special needs trust for Philip, funded by a sizable portion of the inheritance. SunTrust then assumed responsibility for investing the assets on Philip’s behalf.
This solution created a wealth preservation plan for the trust assets whereby the money would be available for Philip’s care and needs throughout his lifetime, without jeopardizing his government entitlements.