Don Harmening, Attorney At Law
Special Needs Trusts
Special needs trusts are designed to benefit individuals with disabilities by managing assets for their benefit without jeopardizing their eligibility for governmental assistance programs.
Its key benefit is ensuring that loved ones with special needs are provided for without losing access to essential benefits.
$1,500
Service Procedure
Free Consultation
- Assessment of Needs: Understanding the specific needs of the beneficiary with disabilities, including their current and future financial, medical, and personal care requirements.
- Exploration of Options: Discussing the different types of Special Needs Trusts (e.g., First-Party, Third-Party, Pooled Trusts) and determining which is most suitable based on the beneficiary’s situation and the source of the funds.
Designing the Trust
- Selection of Trust Type: Based on the initial consultation, deciding on the appropriate type of SNT to meet the beneficiary’s needs and comply with legal requirements.
- Trustee Selection: Advising on the selection of a trustworthy and capable trustee or trustees, who will manage the trust assets and make distributions on behalf of the beneficiary.
Drafting the Trust Document
- Creating the Trust Agreement: Drafting a legal document that outlines the trust’s terms, including the beneficiary’s needs, the powers and duties of the trustee, and the specific conditions under which distributions can be made.
- Tailoring to Individual Needs: Ensuring the trust is customized to address the unique needs of the beneficiary while maintaining their eligibility for public benefits.
Review and Revisions
- Client Review: Reviewing the drafted trust document with the client to ensure it accurately reflects their wishes and the needs of the beneficiary.
- Modifications: Making any necessary adjustments based on client feedback or changes in circumstances.
Execution of the Trust
- Formal Signing: Assisting with the formal execution of the trust document, which includes obtaining the necessary signatures in compliance with state laws.
- Notarization: If required, ensuring the document is notarized to affirm its authenticity.
Funding the Trust
- Transferring Assets: Advising on and assisting with the process of transferring assets into the trust, which may include cash, securities, real estate, or other property.
- Coordination with Financial Institutions: Working with banks, brokerage firms, and other financial institutions to retitle assets in the name of the trust.
Guidance
- Educating the Trustee: Providing the trustee with detailed guidance on their role and responsibilities, including how to manage the trust assets, make distributions, and comply with reporting requirements.
- Advising on Benefit Compliance: Offering advice on managing the trust to ensure the beneficiary maintains eligibility for government assistance programs.
Navigating Special Needs Trusts
A Special Needs Trust (SNT) is a pivotal legal tool designed to provide financial support to individuals with disabilities without jeopardizing their eligibility for government assistance programs such as Medicaid or Supplemental Security Income (SSI).
By setting aside assets in a trust, you can ensure that a loved one with special needs receives the supplementary care and resources they need over their lifetime, all while preserving their access to essential public benefits.
A special needs trust can be beneficial for:
- Individuals with Disabilities: SNTs are specifically tailored for those who have disabilities that significantly impact their daily living and financial independence.
- Families Planning for Long-Term Care: For families looking to secure a financial future for a member with special needs, an SNT offers a structured way to provide ongoing support without disqualifying them from government aid.
- Beneficiaries of Estates or Settlements: If a person with disabilities is due to inherit assets or receive a settlement that could disqualify them from their benefits, an SNT can safeguard those assets effectively.
The best time to create a Special Needs Trust is before the individual with special needs receives any assets that could affect their benefit eligibility. Early planning, especially in anticipation of receiving an inheritance, legal settlement, or personal injury award, is crucial to ensuring that these funds enhance the individual’s quality of life without causing a loss of benefits.
Additionally, setting up an SNT as part of broader family estate planning ensures that care and financial strategies are aligned with the individual’s long-term needs.
Embracing a Future of Care and Dignity
Establishing a Special Needs Trust is more than a financial decision; it’s a commitment to enhancing the life of someone with disabilities, ensuring they have the resources to live with dignity and comfort.
These trusts address the unique challenges faced by individuals with special needs, offering families peace of mind that their loved one’s financial security and care are well-managed, now and in the future.
If you’re considering setting up a Special Needs Trust or seeking guidance on how to best support a loved one with disabilities, contact us for a free consultation.
We’re here to help you navigate the complexities of special needs planning with compassion and expertise, creating a tailored solution that meets your loved one’s unique circumstances and secures their well-being.