Middle Ground Alternatives

Power of Attorney, cont'd

Limitations of Advance Planning Documents: Living wills and medical power of attorney each have limitations. For instance, the principal can't plan ahead for every situation. The instructions included in the living will might not apply in certain instances. The principal, or person who is being helped, has to trust that the agent or power of attorney will make decisions based on what's best for him/her.

Special Needs Trust - A Special Needs Trust is a way to provide for the needs of a disabled person without making him or her ineligible for Supplemental Security Income (SSI), Medicaid, or other actual or potential benefits that require recipients to have a limited income. Typically, when a person receives large sums of money through an inheritance, legal settlement, or gift, he or she may no longer be eligible for the same types of public supports and benefits. However, a special needs trust can be established to receive inheritance, settlement, or gift funds without compromising the services an adult with disabilities may need on a daily basis.

In summary, a special needs trust does not jeopardize a person’s SSI and/or Medicaid benefits; instead, it allows the person to use extra funds to purchase items that are not reimbursed by public programs.

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