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Special Needs Families in Divorce

By Christina Lesher
January 31, 2015

When parents of special needs children experience a divorce, family law attorneys are in a unique position: Not only can they handle the divorce proceedings, but they can also steer their clients toward a plan for maintaining or establishing valuable Medicaid benefits. Skilled lawyering at the time of divorce can help preserve a high quality of life for special needs children for years to come.

Families can use a supplemental needs trust (SNT), sometimes called a special needs trust, to help them establish and maintain Medicaid coverage. Medicaid can provide not only health care but also housing, caregiver and nursing services.

However, many Medicaid programs limit the beneficiary's amount of income and assets. The SNTs are a critical tool in maintaining benefits: They allow the beneficiary to enjoy the use of assets and income (such as child support) while not counting the income and assets as belonging to the child.

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