How do I structure my Will to protect my disabled daughter’s social security and medicaid benefits?

My husband passed away a few months ago. My adult daughter is disabled (lives at home) and she now receives his social security benefits. She also has Medicaid benefits through the state. I own a business that generates residual income. I need to know how to structure a will so that my assets divided evenly among my three daughters, but also that whatever my disabled daughter inherits does not affect her social security or Medicaid benefits. Should I set up a trust in her name? Her medications alone currently would cost over $3,000 per month if she didn’t have Medicaid.

Asked on December 8, 2011 under Estate Planning, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Good question. To give proper suggestions regarding your question, I would need to know your current assets as well as the monthly expenses of your daughter. However, from a practical matter setting up a trust for your disabled daughter would be the best way to keep assets out of her ownership which would affect her ability to get Medicaid benefits.

As such, you should set up an appointment with an experienced Wills and trust attorney as to a trust for your daughter as well as an insurance policy on your life where the beneficiary would be a trust already set up for your disabled daughter as well.


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