The primary purpose of creating a well-rounded estate plan is to protect your legacy and provide for your loved ones after you pass away. If you have a loved one with special needs, you need to account for those needs in your estate plan. Contact a dedicated Medina County special needs planning lawyer from Krause Law to learn more.
The purpose of special needs planning is to protect the rights of your loved one and to provide them with financial independence both while you’re alive and after your passing. If you need assistance with any aspect of special needs planning, including Trust creation or administration, guardianships, asset protection, or otherwise, you can have confidence in your decision to turn to a seasoned Medina, Ohio estate planning lawyer from Krause Law.
The main component of special needs planning is establishing a Special Needs Trust. The primary purpose of these Trusts is to preserve a disabled individual’s access to public benefits while continuing to have the funds needed for support.
Essentially, a person will place assets/funds into a Special Needs Trust. The beneficiary of the Trust (the person with special needs) can continue to receive public benefits while the funds in the Trust provide additional supplementary benefits. Without a Special Needs Trust in place, if a person with special needs directly inherits money, their governmental benefits will likely be terminated.
There are two main types of Special Needs Trusts: self-settled Trusts and third-party Trusts. In a self-settled Trust, a disabled individual under the age of 65 will put his or her assets into the Trust and use them as needed. For individuals over the age of 65, a pooled Special Needs Trust (or community Trust) operated by a non-profit organization that blends several Special Needs Trusts into one, may be a better option.
In a third-party Special Needs Trust, someone other than the special needs individual will set up the Trust using their own funds. The special needs individual can then utilize those funds as needed.
STABLE accounts function similarly to retirement plans. Essentially, an individual with special needs will contribute money to their STABLE account, which will allow them to save money while remaining on public benefits. The money placed into this account may be invested. You should note that there are limits to how much money may be placed into a STABLE account.
If you’d like to learn more about how to best include your loved one with special needs in your estate plan, our legal team is here to help. Contact Krause Law today to set up your free case evaluation with our dedicated Medina County estate planning firm.
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