Are you the parent or guardian of a child or adult with special needs? You and your special needs loved one may benefit from establishing a Special Needs trust. This type of trust helps parents, other family members, or even friends contribute financially to the person with special needs without jeopardizing their eligibility for Medicare, Social Security Disability, SNAP, and other government benefits, like housing or vocational programs.
Special Needs Trusts (SNT) differ slightly from other trusts, but when properly constructed by a skilled Chesterfield, MO, special needs trust lawyer, they can significantly enhance the beneficiary’s life. If you wish to learn more about an SNT or set one up for a loved one, contact Legacy Law Center today.
What Is A Special Needs Trust?
A special needs trust operates in much the same way as other types of trusts: the trust creator places assets in the trust for the financial benefit of the beneficiary. However, with some types of trusts, the beneficiary has control over the trust or could exercise some sort of control over the trust. The beneficiary of a special needs trust has no control over the assets of the trust and only benefits financially when the trustee uses the monies or assets on behalf of the person with special needs.
It’s specially constructed so that the assets in the trust are not counted as personal assets of the person with special needs. This is so they maintain their financial eligibility for Medicaid and other government programs they may participate in or be eligible for. The money in the trust is used to enhance their lives and pay for things that their “regular” income or distance benefits may not, such as durable medical equipment.
A Chesterfield special needs trust lawyer can review your loved one’s financial situation, including their benefits and living situation, and then properly establish the trust to preserve those benefits. A member of our legal team can also serve as the trustee on your behalf, ensuring that the funds in the trust are used properly. The government looks closely at the financial picture of participants; we ensure that your loved one’s housing and medical coverage aren’t in jeopardy due to an improperly constructed trust.
Personalized Legal Advice For Families Of A Special Needs Adult
Adults with special needs may need more legal protections than just a special needs trust. The legal team at Legacy Law Center can help you establish an SNT and review your loved one’s situation to determine if there are other ways that you can protect them and enhance their quality of life. We can also act as a trust administrator if you do not wish to take on the responsibility or do not know anyone ready to assume a trustee’s fiduciary duties. Contact our firm today for a consultation with an experienced Chesterfield special needs trust lawyer.
Ensuring Financial Security With A Special Needs Trust
A Chesterfield MO special needs trust lawyer understands that when planning for the future of a loved one with special needs, it’s essential to consider their financial security in a way that protects their eligibility for important public benefits. One of the best tools available to achieve this goal is a Special Needs Trust. A Special Needs Trust allows us to provide for a loved one’s future while ensuring they continue to receive government benefits like Medicaid and Supplemental Security Income (SSI). Let’s explore how this type of trust works and the key factors to consider.
What A Special Needs Trust Does
A Special Needs Trust is designed to protect the assets of a person with disabilities without jeopardizing their access to public assistance programs. These programs often have strict financial eligibility requirements, meaning that even a small inheritance or financial gift could disqualify someone from receiving benefits. By placing assets into a trust, we can avoid that problem. The assets held within the trust are not counted toward the beneficiary’s resources, allowing them to maintain eligibility for these crucial programs.
Types Of Special Needs Trusts
There are different types of Special Needs Trusts, and the best choice depends on our specific circumstances. The two main types are first-party and third-party trusts.
A first-party trust is funded with the beneficiary’s assets, often from a personal injury settlement or an inheritance. This type of trust is often used when the beneficiary has resources of their own that could interfere with their public benefits.
A third-party trust, on the other hand, is created and funded by someone else, such as a parent or grandparent. This trust holds assets intended for the beneficiary’s use but keeps those assets separate from their own, ensuring that the beneficiary retains their access to important government programs.
Choosing A Trustee
Selecting the right trustee is one of the most important decisions when setting up a Special Needs Trust. According to a Chesterfield special needs trust lawyer, the trustee will be responsible for managing the assets in the trust and ensuring that the funds are used to enhance the quality of life for the beneficiary. The trustee must also understand the rules around benefit eligibility to avoid any missteps that could result in the loss of public assistance.
The trustee can be a family member, friend, or even a professional. However, whoever we choose must be someone who can handle the financial responsibilities and has the dedication to manage the trust long-term. It’s important to choose carefully, as this role involves oversight and decision-making that directly impacts the beneficiary’s well-being.
Distributions From The Trust
A key benefit of a Special Needs Trust is that the funds can be used to improve the beneficiary’s quality of life without interfering with their government benefits. The trustee can distribute money for a wide range of expenses, including medical care, education, transportation, and other personal needs. However, the trustee must make these distributions in a way that complies with benefit program regulations. Mismanagement of trust distributions could result in the loss of benefits, so it is vital to follow the established guidelines.
Secure Your Loved One’s Future
Establishing a Special Needs Trust requires careful planning and the right legal guidance from a Chesterfield special needs trust lawyer to make sure everything is set up properly. At Legacy Law Center, our award-winning team can help you design a trust that works for your family’s unique needs and ensures that your loved one’s future is protected. Contact us to learn more about how we can support your planning process and safeguard your family’s future.
Types Of Special Needs Trusts We Handle
At Legacy Law Center, the team is dedicated to helping Missouri families safeguard the long-term security and care of loved ones with disabilities through thoughtful and comprehensive trust planning. The legal team provides guidance on creating and managing trusts that preserve government benefit eligibility while securing lifetime financial stability. Each case receives careful attention to detail, ensuring compliance with state and federal requirements and meeting each family’s goals. Clients benefit from dependable support and clear communication throughout the process. Our Chesterfield special needs trust lawyer assists clients in building effective plans that promote both independence and protection for their loved ones.
First-Party Special Needs Trusts
A first-party special needs trust is funded using the beneficiary’s own assets, such as a personal injury award or inheritance. These trusts allow individuals to maintain eligibility for Medicaid or Supplemental Security Income while covering personal and medical expenses that improve quality of life.
Third-Party Special Needs Trusts
Third-party trusts are often created by parents or relatives who want to provide for a person with disabilities without affecting their eligibility for government programs. Because the assets in these trusts do not belong to the beneficiary, families can plan for long-term care while preserving financial flexibility for future generations.
Pooled Special Needs Trusts
Pooled trusts are managed by nonprofit organizations that group the assets of multiple beneficiaries together for coordinated investment and professional management. Each person has a separate account, allowing for professional oversight and lower administrative costs compared to privately managed trusts.
Trust Administration And Legal Oversight
Proper administration is essential to maintaining a trust’s validity and ensuring that disbursements comply with benefit regulations. Our Chesterfield special needs trust lawyer can assist with ongoing trust management, documentation, and communication between families, trustees, and agencies. Attorneys experienced in disability planning law often guide clients through annual reviews or necessary modifications to adapt to changing needs and regulations.
Supporting Lifetime And Future Care
Special needs trusts can fund essential and supplemental expenses such as therapy, education, recreation, or housing improvements. Families may also benefit from working with professionals skilled in long-term care planning, who help align trust structures with evolving personal and medical circumstances. Additionally, legal professionals experienced in estate protection law can help ensure that assets are properly safeguarded and distributed according to the trust’s intent.
Personalized Legal Support For Families In Missouri
Our Chesterfield special needs trust lawyer with Legacy Law Center offers customized legal guidance for creating, administering, and updating trusts designed to safeguard the financial interests of individuals with disabilities. The firm assists families in coordinating benefits, ensuring compliance, and designing financial plans that provide security and peace of mind. Those seeking to protect the financial future of a loved one are encouraged to contact the firm today to discuss available options and begin building a sustainable plan for care and support.
