Are you or a loved one facing high medical costs?  Is the illness persistent and consistent?  Have you realized that typical health insurance is not enough to cover all of the expenses? If so, this article will summarize two important trusts that are authorized by federal law to help you co-pay for long-term care with government benefit programs.

Federal, state, and even local governments offer benefits to those who meet the requirements of disability.  Examples of disability-based benefits include income benefits from the Social Security Administration, similar benefits from the Department of Veteran’s affairs, and education benefits from state public schools.  Other examples include grants for those who are mobility impaired, disabled parking permits, etc.  The requirements for these programs vary.

Generally, however, one must first be “adjudicated” disabled, typically by the Social Security Administration.  This, of course, is not always the case.  Humorously, the Department of Veterans Affairs offers a non-service connected pension for disabled veterans and presumes the veteran is disabled if he or she is over age sixty-five.

Meeting the definition of disability is important because federal law allows assets for the benefit of the disabled to be protected if held in one of the following types of trusts: (1) a self-settled special needs trust in accordance with United States Code, Title 42, Section 1396p(d)(4)(A);  (2) a qualified income trust in accordance with United States Code, Title 42, Section 1396p(d)(4)(B) and any trust qualifying under United States Code, Title 42, Section 1396p(d)(4)(C).