When planning for the future of a loved one with special needs, a Special Needs Trust (SNT) can provide financial security and peace of mind. At the Law Offices of Andrew Cohen, we understand the complexities of special needs planning and are dedicated to helping families navigate this process. Our Carlsbad special needs trust lawyer specializes in creating trusts that protect your loved one’s assets while preserving eligibility for essential government benefits like Medicaid and Supplemental Security Income (SSI). Let us guide you in establishing a trust that ensures long-term care and support for your loved one.
What is a Special Needs Trust
A Special Needs Trust is a legal arrangement that helps manage and protect assets for an individual with disabilities, ensuring they remain eligible for essential public benefits like Medicaid and SSI, which are crucial for healthcare and daily living expenses. These benefits have strict income and asset limits, but placing assets in a trust excludes them from the eligibility calculations. This allows the beneficiary to benefit from the trust funds without losing access to vital government assistance. A trusted trustee manages the trust assets, using them to enhance the beneficiary’s quality of life, such as covering additional care, therapies, and other needs not provided by public programs. This may include things like:
- Medical expenses not covered by insurance or Medicaid
- Housing and rent support
- Educational expenses
- Transportation costs
- Recreational activities and other quality-of-life enhancements
With proper guidance from a Carlsbad special needs trust attorney, you can ensure that the trust is set up to align with your loved one’s needs while preserving their access to public benefits.
3 Types of Special Needs Trusts
There are three main types of Special Needs Trusts, each designed to serve different purposes depending on the assets’ source and the individual’s specific needs. Understanding these different types of trusts is crucial for ensuring your loved one receives the protection and benefits they need. There are three main types of SNTs: First-Party, Third-Party, and Pooled.
First-Party Special Needs Trust (Self-Settled Trust)
Funded with assets owned by the individual with special needs, typically from an inheritance, lawsuit settlement, or personal savings. While it allows the individual to maintain eligibility for public benefits, it must be established by a parent, grandparent, legal guardian, or court and includes a payback provision. After the individual’s death, any remaining funds must be used to reimburse Medicaid.
Third-Party Special Needs Trust
A trust is created and funded by someone other than the individual, such as a family member, usually as part of an estate plan. This trust doesn’t require a payback provision, allowing any remaining funds to be distributed according to the trust’s terms without Medicaid claiming them.
Pooled Special Needs Trust
Multiple individuals with special needs combine their assets in a single trust managed by a nonprofit organization. This option is often suitable for those with fewer assets or no family members to manage a trust. Like other SNTs, it preserves eligibility for public benefits while covering extraordinary needs-related expenses.
Why You Need a Carlsbad Special Needs Trust Lawyer
Creating a Special Needs Trust requires careful consideration, as each individual’s circumstances are unique. Working with an experienced special needs trust attorney in Carlsbad ensures that all requirements are met, safeguarding both the trust and the beneficiary’s long-term well-being.
A qualified Carlsbad special needs trust lawyer can assist you in several ways:
- Understand the Different Types of Trusts: There are three main types of Special Needs Trusts: First-Party (funded with assets owned by the individual with special needs), Third-Party (funded by someone else), and Pooled (combining assets from multiple beneficiaries). An attorney will help you select the most appropriate type for your situation.
- Ensure Proper Trust Drafting: The language used in drafting a Special Needs Trust is critical. A poorly drafted trust can disqualify the beneficiary from public benefits or fail to protect their assets. A knowledgeable lawyer will ensure that the trust is properly structured.
- Choose a Trustee: Selecting the right trustee is vital, as they will manage the funds and make decisions for the beneficiary. An attorney can guide you in choosing a reliable and knowledgeable trustee.
- Plan for Future Changes: Life and laws change over time, and a special needs trust attorney can help adapt the trust to new circumstances.
- Coordinate with Other Estate Planning Tools: A Special Needs Trust should complement other estate planning documents, such as wills and healthcare directives, ensuring comprehensive protection.
How We Can Help You at the Law Offices of Andrew Cohen
At the Law Offices of Andrew Cohen, we are dedicated to securing a stable future for individuals with special needs. Our Carlsbad special needs trust attorney will assess your family’s unique situation and provide clear, personalized guidance. We ensure that the trust is established correctly and that all legal details are handled carefully. This gives you peace of mind that the individual’s future and access to public benefits are protected.
Schedule a Free Consultation
Navigating special needs planning can be overwhelming, but with the proper legal support, you can ensure your loved one’s future is secure. If you need a Special Needs Trust or have questions about this important planning tool, contact the Law Offices of Andrew Cohen for a free consultation.
We are committed to providing you with the legal expertise and guidance you need. Call us at 661-481-0100 to schedule your free consultation and secure your loved one’s future with a Special Needs Trust.
