For those who are caring for adults who have been deemed disabled by the Social Security Administration, it is important to find the best way to ensure your loved one is cared for in the best possible manner. There are many benefits to financial arrangements known as OBRA 93′ Trusts Chicago.
Two Types
There are two types of OBRA 93’ trusts. They are called pooled trusts and disability payback trusts. They each have different rules that must be strictly followed. Make sure to consult with either a financial advisor or an attorney to make sure you are abiding by the rules.
Differences
The main difference between the two trusts is that the pooled trust is meant for people of any age who are deemed disabled. The payback trust can only be created if the recipient is under the age of 65. While both trusts have a payback clause that covers any money received from the state, the main difference is that any money left over in a pooled trust after repayment has been made can be kept by the family. This is not so with an actual payback trust where all funds left in the account go back to the state.
Needs Only
The funds are never to be used for a “cash disbursement.” The OBRA 93′ Trusts Chicago are only to be used for physical needs that bring the recipient comfort such as food, shelter, and clothing.
For more information on these trusts, contact Life’s Plan, Inc. today.
