Special Needs Trust
A Special Needs Trust is a legal arrangement designed to provide financial support to a person with disabilities without jeopardizing their eligibility for government benefits. This type of trust ensures that funds are used to enhance quality of life while preserving access to essential programs like Medicaid and Supplemental Security Income (SSI).
Key Features Of A Special Needs Trust
- Benefit Protection: Preserves eligibility for needs-based government programs.
- Enhanced Quality of Life: Funds can be used for education, personal care, travel, and more.
- Flexible Funding Sources: Can be funded with personal assets, gifts, or settlements.
- Professional Management: Typically managed by a trustee to ensure proper fund use.
Our Special Needs Trust Services
At SJF Law Group, we help families create Special Needs Trusts tailored to their loved ones’ unique requirements.
- Custom Trust Drafting: Design a trust that meets your family’s specific needs.
- Funding Guidance: Assist in selecting and transferring appropriate assets into the trust.
- Trustee Selection: Help you choose a responsible trustee to manage the funds.
- Ongoing Support: Provide legal assistance for compliance and trust updates as needed.
We’re here to ensure your loved one has a secure financial future without compromising their benefits.
Who Should Consider Setting Up a Special Needs Trust?
A Special Needs Trust is vital for families seeking to provide long-term financial security for a loved one with disabilities.
Common Scenarios for Special Needs Trusts:
- Parents of a Child with Disabilities: Ensure financial resources are available after you’re gone.
- Personal Injury Settlements: Protect settlements from disqualifying an individual from benefits.
- Estate Planning for Beneficiaries with Disabilities: Safeguard inheritance funds without affecting benefits.
- Guardianship Cases: Provide financial support without disrupting government assistance.
How to Set Up a Special Needs Trust
Establishing a Special Needs Trust requires careful planning to meet legal and program-specific requirements.
- Define the Purpose: Determine how the trust will benefit the individual with special needs.
- Draft the Trust Document: Work with an attorney to create a compliant, legally binding trust.
- Select a Trustee: Appoint a trusted individual or professional trustee to manage the funds.
- Fund the Trust: Transfer assets into the trust, such as savings, property, or settlements.
- Maintain the Trust: Regularly review and update the trust to ensure ongoing compliance.
Our experienced attorneys will guide you through every step of the process to ensure the trust is properly established and managed.
Disadvantages of Special Needs Trusts
While Special Needs Trusts provide crucial benefits, there are some considerations to keep in mind:
- Trustee Responsibilities: Managing the trust requires a high level of accountability and expertise.
- Administrative Costs: Professional trustees may charge fees for managing the trust.
- Restricted Use: Funds must be used for approved purposes to avoid penalties or benefit reductions.
- Complexity: Setting up and maintaining the trust requires professional legal assistance.
Special Needs Trust FAQ
No. Giving cash directly to the beneficiary could reduce or eliminate their eligibility for government benefits like Supplemental Security Income (SSI) and Medicaid. Instead, the trustee should make payments directly for approved goods and services.
A family member, friend, or professional trustee can serve, but they must understand the legal and financial responsibilities.
Any remaining funds are distributed according to the terms outlined in the trust, often to family members or a charity.
Alternatives to a Special Needs Trust
If a Special Needs Trust doesn’t meet your needs, there are other ways to support a loved one with disabilities:
Common Alternatives
- ABLE Accounts: Tax-advantaged savings accounts for disability-related expenses.
- Pooled Trusts: Managed by nonprofit organizations, ideal for smaller settlements or inheritances.
- Direct Gifting: Provide financial support directly, though this may impact benefits.
- Life Insurance Policies: Name a family member as the beneficiary to help provide for the individual’s needs.
We’ll help you explore these alternatives and determine the best solution for your family’s circumstances.
We’re Here to Help You Set Up a Special Needs Trust
Safeguard your legacy and ensure your wishes are carried out by establishing a Special Needs Trust with the experienced team at SJF Law Group. Contact us today to begin the process of protecting your assets and securing your future.