If you have a loved one with special needs, you will likely do anything to help support them. However, if you’re unfamiliar with your estate planning options, you may be doing them a disservice. Unfortunately, many are unaware of the importance of establishing a Special Needs Trust for their loved ones instead of leaving them assets in a Will. If you’re interested in learning more about this option, you’ll want to keep reading. You’ll learn the benefits of this Trust option, whether or not they are Revocable, and how a Medina County, Ohio special needs planning lawyer can help ensure your wishes are met and your loved ones are protected.
What Is a Special Needs Trust?
A Special Needs Trust is an option for those with loved ones with additional needs or disabilities that helps support them without disqualifying them from government benefits. Unfortunately, if you leave someone a considerable amount of funds in a Will, for example, they will receive this inheritance upon your passing. As a result, it may put them over the minimum income for certain government assistance programs, which can hurt them in the long run.
However, creating a Special Needs Trust allows you to care for the individual without gifting them money to ensure they still qualify for the necessary programs. For example, you can create a Trust to provide funds to pay for hobbies, living expenses, and any classes the person may want to participate in. However, you’ll need to carefully word the terms and conditions of the Trust to ensure these are not considered cash gifts.
Can These Be Revocable?
Though most people assume a Special Needs Trust (SNT) can only be established by another person for the benefit of someone who requires additional care or assistance, this is far from the truth. In reality, there are two forms of this Trust that can be created.
Most commonly, a Third-Party SNT is established. This occurs when someone creates a Trust for the Beneficiary. If you’re looking to establish this form of Trust, it can be either Irrevocable or Revocable, depending on your requirements.
However, many are unaware that First-Party SNTs are an option. This occurs when someone with a disability creates a Trust to hold their assets to qualify for certain government benefits. These Trusts, however, must be Irrevocable.
If you’re interested in creating a Special Needs Trust for your loved one, it’s in your best interest to connect with an experienced estate planning attorney. This can be incredibly complex, so doing everything possible to protect and provide for your Beneficiaries is critical. At Kraus Law, we understand how important these matters are, which is why we are dedicated to doing whatever we can to help you. Connect with us today to learn how our compassionate team can assist you.