A special needs trust works for the specific necessities of your family and your trustees. Such trusts are designed with the intention to support trustees who are unable to provide for themselves and/or rely on government aid such as Social Security Disability Insurance or medicaid.
Every family is different, and every differently-abled person has their own needs. This is why special needs trusts are largely customizable. The role of the trustee can be determined in how they look after the beneficiary of the special needs trust, and is often filled by a close family member or trusted friend.
Maintains SSDi and Medicaid Benefits
If the beneficiary is receiving government assistance due to their disability, they might get their assistance cut from receiving the amount within the trust. Chances are, if the beneficiary is receiving government assistance, the sum they gain from the trust will not be enough for them to continually support themself without government assistance.
Additionally, should the beneficiary every be sued, the assets in the trust will not be touched.
Accessing the Trust
The beneficiary will be unable to directly access the trust to avoid them losing their benefits, but will have access through the trustee. The trustee will be responsible for using the trust to provide food, shelter, medical expenses, education, vacations, or a variety of other things. This will help to protect the assets in the trust and ensure the beneficiary is getting the most out of what’s being left to them.
Writing a Special Needs Trust
The wording on a special needs trust needs to be carefully planned and reviewed for the trust to serve its intended purpose. Improper language can leave it subject to unnecessary taxes and vulnerable to exploitation. While you are capable of writing your own trust without an attorney present, the specific requirements of a special needs trust make it highly recommended to use legal assistance.
If you or a loved one is planning on leaving property to a special needs beneficiary and are interested in learning more about special needs trusts, contact the lawyers of Dimension Law Group to schedule a phone consultation.