If you’ve recently won your disability claim, you’ve likely been focused on financial stability and health. But as life moves forward, it’s important to think about the future—specifically, how to protect your assets and provide for your loved ones. One of the most effective ways to do that is by setting up a trust.
But not all trusts are created equal. Understanding which type of trust is right for your situation can make a big difference in your financial security, your ability to qualify for Medicaid later in life, and how your family is cared for after you’re gone.
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Why Consider a Trust?
Trusts are not just for the ultra-wealthy. In fact, they’re especially helpful for people on a fixed income—such as those receiving Social Security Disability, VA benefits, or retirement income—because they allow for more control over how assets are managed and passed on. Trusts can:
- Protect assets from creditors or lawsuits
- Help you qualify for Medicaid by legally moving assets out of your name
- Avoid probate court, saving your family time and money
- Provide for a loved one with special needs without jeopardizing their benefits
For a free legal consultation, call (800) 562-9830
Common Types of Trusts to Consider
Here are a few types of trusts that may be relevant, depending on your circumstances:
Revocable Living Trust
This type of trust allows you to stay in control of your assets during your lifetime. You can modify or cancel it at any time. It doesn’t help with Medicaid planning, but it does help your estate avoid probate and ensures your assets are distributed according to your wishes.
Best for: People looking to simplify estate planning and avoid probate.
Irrevocable Trust
Once assets are placed into this trust, you give up control—but in exchange, they’re protected from being counted against you for Medicaid eligibility. These trusts are commonly used in elder law planning, especially for those who may need long-term nursing home care in the future.
Best for: People planning for Medicaid eligibility or asset protection.
Special Needs Trust
If you have a loved one with a disability, this trust allows you to leave them assets without disqualifying them from government benefits. These can be set up with your own money (third-party trust) or their money (first-party trust).
Best for: Parents or guardians of a disabled child or adult.
Testamentary Trust
Created through your will, this trust only goes into effect after your death. It’s useful if you want to leave money to someone (like a minor or someone not financially responsible) but want a trustee to manage how and when the money is used.
Best for: Families with young children or vulnerable beneficiaries.
Which Trust Is Right for You?
The answer depends on your goals. Are you trying to protect assets from long-term care costs? Are you hoping to avoid probate? Do you have a child or family member with a disability? A consultation with an experienced elder law attorney can help you weigh your options and choose the best plan for your future.
At Marc Whitehead & Associates, we help clients not only win disability claims but also plan for what comes next. If you’re interested in learning more about how a trust could benefit your family, we’re here to guide you through the process.
Want to know where to start?
Call us today at 800-562-9830
Or contact us online: DisabilityDenials.com
