Special Needs Trust Planning
Estate planning tools allow an individual to distribute their assets as they wish using all sorts of tailored options. There is no one size fits all estate plan, and this is especially true when it comes to families with members who have disabilities and may thus have special needs. Protecting their future when you are no longer there to care for them is an extremely important task. A special needs trust (SNT), also called a supplemental needs trust, is one way to ensure your family member will be protected.
When a SNT is established, a trustee – working on the behalf the beneficiary – manages the financial and administrative affairs of the beneficiary and has complete discretion as to whether to make any distributions. The beneficiary of a SNT may be completely incapable of managing their own financial matters and can be among the most vulnerable in society.
If done properly, a special needs trust can supplement any benefits a disabled beneficiary receives from the government, such as Supplemental Security Income (SSI) and Medicaid, without disqualifying the beneficiary from receiving those benefits.
There are different types of SNT’s depending on the source of the funds that go into the trust. Moreover, many family members have questions such as how much should go into the trust, who should be the trustee and what kinds of things can the trust be used for. When establishing a SNT it is important to receive the counsel of an attorney with experience in drafting these specific types of trusts because there are different rules and requirements that affect the validity of these types of trusts and an experienced attorney can help answer your questions.
When a SNT is established, a trustee – working on the behalf the beneficiary – manages the financial and administrative affairs of the beneficiary and has complete discretion as to whether to make any distributions. The beneficiary of a SNT may be completely incapable of managing their own financial matters and can be among the most vulnerable in society.
If done properly, a special needs trust can supplement any benefits a disabled beneficiary receives from the government, such as Supplemental Security Income (SSI) and Medicaid, without disqualifying the beneficiary from receiving those benefits.
There are different types of SNT’s depending on the source of the funds that go into the trust. Moreover, many family members have questions such as how much should go into the trust, who should be the trustee and what kinds of things can the trust be used for. When establishing a SNT it is important to receive the counsel of an attorney with experience in drafting these specific types of trusts because there are different rules and requirements that affect the validity of these types of trusts and an experienced attorney can help answer your questions.
Special Needs Trust: Planning for People with Disabilities & the Families who Support Them
a full-length webinar presented by Chesapeake Legal Counsel
(click here to download the accompanying handout)
a full-length webinar presented by Chesapeake Legal Counsel
(click here to download the accompanying handout)