Can a social worker help a disabled life insurance beneficiary?

https://www.specialneedsalliance.org/the-voice/funding-a-special-needs-trust-with-life-insurance-2/

Yes, you can make a special needs trust the beneficiary of certain kinds of life insurance policies.

EW, I am going to assume that if your BF is planning on marrying you and having a family, in addition to having a policy that can provide for his brother, he (and you) will be prudent enough to take out term life insutance to provide for a situation in which one of you dies prematurely and mist raise children by themselves.

www.Bogleheads.org is a great forum for folks planning their financial future. You will get accurate answers about planning for disabled relatives there, too.

Just need to explain that a "Special Needs Irrevolkable Trust" ends up reverting back to Medicaid. You are limited to what the money can be used for. It cannot be used for food, housing or utilities. It can be used to pay cable and a phone bill (not a phone) because there is not financial help for these. I was able to get my nephew a stationary bike but needed a Dr. Order. When the person passes that Trust becomes an asset. Medicaid gets paid back. If there is a beneficiary and money left after Medicaid recovers, that goes to the beneficiary.

I doubt if one can be set up before the brother receives the money as a beneficiary. But its a good question to ask a lawyer.

Funerals cannot come out of the trust. Lets say brother receives 100k, out of that a prepaid Funeral arrangement should be made and paid for. The balance of the money is put in the trust.

I would set up a Special Needs Trust and the Trust is the beneficiary.
The best thing would be to consult an attorney to do this.

Not sure if a Special Needs Trust can be set up before the money is received. I had to set one up for nephew to get help. The policy will not effect his Medicare. It could effect his SS disability. You are only allowed to make a certain amount a year working income wise and not sure if a policy is considered income as such. These questions need to be asked to a lawyer that knows SS and Medicaid.

The brothers Medicaid caseworker would be the person I asked about the insurance policy. How would something like this effect his Medicaid. My nephew is allowed a certain amount in the bank and a certain amount he can have in working income.

Once you get the info, then see a lawyer.

I agree with BarbBrooklyn, Medicaid rules differ from state to state so this is too important to leave to an anonymous, crowd-sourcing forum where there's no accountability if the information given is inaccurate for your situation and state. There will be many other details to be considered that the lawyer will know to ask about, and options that may not be suggested by anyone here. Your fiancee should know that consulting with an estate planner and even a Medicaid planner is a worthwhile investment considering the implications if it's not planned for properly or fully.

Your fiance needs to talk to an estate planning lawyer who can help him craft a "Special Needs Trust" for his brother.