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Why should I set up a special needs trust?

Why should I set up a special needs trust?

“A Special Needs Trust allows the parent or caregiver to set aside money for the future care of their loved one living with a disability while protecting the U.S. government benefits (Supplemental Security Income and Medicaid) that are crucial in providing the medical and income necessary to supporting the individual,” …

What can special needs trusts be used for?

The Special Needs Trust can be used to provide for the needs of a person with a disability and supplement benefits received from various governmental assistance programs, including SSI and Medi-Cal. A trust can hold cash, real property, personal property and can be the beneficiary of life insurance policies.

What can a special needs lawyer do for You?

A special needs lawyer can ensure that the trust document contains all the proper language, which in turn, will certify that the trust is valid and legally enforceable. A qualified special needs lawyer will also thoroughly understand the requirements of a special needs trust and will already be familiar with the unique trust laws that apply.

Can a special needs trust be used for elder law?

Furthermore, an unlimited amount of assets may be placed in a special-needs trust. Some elder-law clients come in already having a special needs trust and it is important that the elder law attorney review them to make sure that their terms do not conflict (as they sometimes do) with what is required for medicaid planning purposes.

Why is a special needs trust so important?

A special needs trust has particular importance to disabled individuals who may receive an inheritance from family members or others. These trusts are also helpful to disabled individuals who have received personal injury settlements.

Can a personal injury trust be a special needs trust?

The personal-injury client, already on Medicaid, should be advised to create a first party (or self-funded) special needs trust to hold the personal injury settlement to protect their Medicaid eligibility. First party special needs trusts are discussed in more detail below.

What do attorneys need to know about Special Needs Trusts?

What Attorneys Need to Know About Special Needs Trusts Special needs trusts exist to make care easier and more manageable for those with special needs, whether they’re children or elderly persons. Attorneys play an active and important role in helping those with special needs, and can assist in ensuring that their clients receive all of the benefits and financial assistance to which they are entitled.

Can I make special needs trust without a lawyer?

For some families, making a special needs trust without a lawyer is a good option. But others will be better off getting a lawyers help. Here are some things to consider: The type of trust you need.

Do I need a trust attorney?

Why You Need A Trust Attorney. When you are writing a trust, the best thing to do is to have it reviewed by a trust attorney who can ensure that you are lowering your estate taxes. If your children are grown up and you do not need to name a guardian of a minor in your last wishes, then creating a trust rather than a will is a better idea.

Is it possible to close special needs trust?

But terminating a special needs trust is not as simple as merely writing a check to the remainder beneficiaries and calling it a day; winding down a trust can take a lot of work. Last month we discussed some initial things that every trustee of a special needs trust should do upon learning that the primary beneficiary has passed away. Now, we’ll explore additional steps to consider when closing out the trust.