What are Special Needs Trusts?
Estate planning can be a tricky process and it only gets more complicated when your beneficiary has a disability. Luckily, there are special needs trusts to help make this process less complex. These trusts are made to allow a person with a disability to receive property that's held in the trust without losing government benefits.
Special needs trusts are essential for estate planning with children who have disabilities. Luckily, the Alder Law Group can help you with all of your estate planning needs. Whether you wish to draft a living trust, a special needs trust, or any other estate planning services we offer, we have the experience necessary to help plan your estate.
How Special Needs Trusts Work
When you choose to draft a special needs trust with the Alder Law Group, we will help you every step of the way to ensure your special needs trust is accurate and complete. Special needs trusts can help you leave your child with financial security after you are gone without having to worry about their government benefits being revoked.
Without a special needs trust, a portion of your estate could pass directly to your disabled child, disqualifying him or her from governmental benefits until such time that the inheritance is spent down to a point the child has less than $2,000 again. A special needs trust permits your trustee to use the inheritance to improve your child’s quality of life by paying for things that the governmental programs do not provide.
When drafting a special needs trust, there are a number of factors to consider. One of the most important of which is how many funds and property you should put in the trust. Additionally, you should choose someone as your successor trustee who will be capable of navigating Medicaid procedures and requirements. The trustee can use the assets for the benefit of your child, but not for things that Medicaid and Social Security will cover.
A special needs trust that is set up by a third party and not the beneficiary are not subject to government chargebacks. This will allow you to leave the remaining assets in the special needs trust to other beneficiaries when your beneficiary with a disability has passed away.
If you have a child with a disability and are in need of a special needs trust for your estate planning needs, the Alder Law group can help you draw up a fair and accurate special needs trust. Contact us here or call us at 801.463.2600.