What you Should Know about Special Needs Trusts
Trusts are great when it comes to protecting your assets, setting up plans for the future, and putting trustees and beneficiaries in a position to take over when you are no longer living or able to take care of yourself. Special needs trusts are made specifically for the benefit of those with physical and/or mental disabilities, including those with mental disabilities who lack the capacity to manage their own finances. Robinson, Seiler, Anderson & Fife, LC. Law Firm in Provo, Utah can help you with the process of setting up a special needs trust to give you the peace of mind you need when taking care of your loved ones. Below are some basic facts you should know about special needs trusts.
Distribution of Assets
When you are involving a loved one with special needs in your trust as a beneficiary you need to make sure you still have their needs in line with what you wish to pass down to them. Often times, people with disabilities qualify for government assistance such as Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing. Many people make the mistake of leaving assets to their disabled loved ones through a will. This is problematic because acquiring assets, such as a lump sum of money, can disqualify your loved one for these types of government assistance programs. Instead you can set up a special needs trust instead of a will which the trustee has total control over the management of the funds, and the beneficiary does not, government program administrators, like the ones from SSI and Medicaid, ignore the trust assets when considering eligibility.
Addressing Special Needs
What is great about a special needs trusts is that they address the specific needs of the disabled person whereas other types of trusts do not. Even if a family is not interested in government benefits, they should still consider a special needs trust to address those specific needs. You never know what the future will hold for your loved one and having that spelled out in your trust will help take away a lot of the hard decisions.
Taking the time to talk with the lawyers at Robinson, Seiler, Anderson & Fife, LC. Law Firm in Provo, Utah to set up a special needs trust is a must. They can make sure all of the proper wording and wishes are within the trust so you don’t have to worry about your loved one’s future. Set up a consultation with us today to learn more.