Special Needs Planning

Special Needs Planning typically involves planning for children or other individuals who are receiving public assistance benefits. A Special Needs Trust also known as a Supplemental Needs Trust puts into place who will manage the assets for the individual while also maintaining the individual’s eligibility for public assistance benefits.

There are two types of Special Needs Trusts:

Third Party Special Needs Trust

This is created using the assets of a person other than the child or individual receiving public assistance benefits. Typically a parent who has a child receiving public assistance benefits still wants that child to receive an inheritance. The Special Needs Trust will allow this to happen without the child losing his or her public assistance benefits. This is created as part of an estate plan through a Will or Trust.

Self Settled Special Needs Trust

This is typically created by a parent, or legal guardian or court order using the individual’s assets to fund the Trust. An example is when a disabled child receives a monetary settlement from a personal injury lawsuit. If the monies from the lawsuit are placed into the Special Needs Trust, the child still remains eligible for public assistance benefits during his or her life. If assets remain in the Trust after the child’s death, a payback to the state is required, up to the amount the child received public assistance benefits.

You should contact us to schedule an appointment to discuss your special needs planning needs.