To you, your child is perfect, and you’ve catered to them their whole life. But what happens when you’re no longer here to protect them? Or when they inherit assets that threaten their eligibility for vital government benefits?
If that’s your reality, a special needs plan can be the guardian angel you need.
Anyone can benefit from making a special needs plan regardless of age, marital status, or income level. To ensure your intentions are carried out, hiring a professional Atlanta special needs planning attorney can be very helpful.
When assets—such as land, money, or other possessions—are handled by one person for the benefit of another, a trust is established. Special needs trusts are created to benefit physically or intellectually impaired beneficiaries incapable of handling their finances. The beneficiary’s particular needs, way of life, and future are all considered while creating the trust.
The term “trustee” refers to the person in charge of the property, and the “beneficiary” is the individual for whose benefit it is intended. The trust continues for however long it is required, which could be until the beneficiary’s passing or the money has been used up.
If you need help with the special needs planning process, consult with a special needs planning attorney today.
Essential benefits, including Medicaid, Supplemental Security Income (SSI), vocational rehabilitation, and subsidized housing, are usually accessible to those with disabilities. Unfortunately, when a disabled child or other disabled family member inherits assets like large sums of money, it could bar them from participating in these valuable programs.
These problems can be avoided if a special needs trust is established rather than just using a Will. Government program managers, such as those from SSI and Medicaid, disregard the trust assets for determining eligibility because the trustee is in control of managing the money, not the beneficiary. This alone is a good reason to speak to an Atlanta special needs planning lawyer about your estate planning options.
The statistics don’t lie. Fulton had 98,126 persons who were disabled in 2016—the largest number in the state. So, if you’re a caregiver or loved one of a special needs person, know that you are not alone.
Special needs trusts can be established for:
You can take steps to protect your loved one’s future by scheduling a consultation with an Atlanta special needs planning attorney today.
The following types of trusts can safeguard your loved one with special needs.
A disabled or special needs recipient contributes money of their own to a first-party special needs trust. Hence the designation “first-party.” An alternative name for a self-settled trust is a first-party special needs trust.
In a first-party special needs trust, the sum a client receives from their settlement serves as the trust’s source of financing. A disabled beneficiary of a first-party special needs trust is permitted to transfer assets into the trust without losing their right to receive needs-based assistance from government programs like SSI or Medicaid.
When a person with special needs has assets or anticipates receiving assets that would bar them from receiving public assistance, a first-party special needs trust may be desired.
Here are several instances.
Someone with special needs may lose their access to public assistance if they receive an inheritance. Placing the inherited assets in a first-party Special Needs Trust may avert such results.
Someone with special needs may be able to accept an award in a case involving medical negligence or a personal injury settlement without losing their eligibility for government assistance thanks to a first-party SNT. Settlements can include both an annuity and a lump sum payout. Both forms of payment may be made to a first-party SNT that the court has designated.
It could be advantageous to include a first-party trust in the divorce settlement if a spouse with special needs is unable to work and is eligible for public assistance. For instance, the monthly alimony may be paid to the trust rather than the spouse. The special needs spouse can then get a monthly SSI benefit and Medicaid coverage for medical costs.
Resources that do not belong to the beneficiary or the beneficiary’s spouse are used to finance a third-party supplementary special needs trust. Also known as a testamentary trust, this is frequently established by the testator’s will.
A third-party supplementary special needs trust, also known as a living trust or inter vivos trust, may be established during the settlor’s lifespan. When several family members want to contribute to the care of a disabled person, inter vivos trusts are useful estate planning instruments.
A non-profit organization manages a pooled special needs trust rather than a single trustee. It is made to ensure that a person who is physically or mentally impaired can continue to receive government assistance. When a person with a disability inherits financial assets or when a family member wants to financially support a loved one with a disability, pooled trusts might be helpful.
Each beneficiary of the trust has a separate account, but the funds are combined or “pooled” for investing and administrative reasons. Better trust management and more reliable investments are now possible as a result.
Additionally, it eliminates the requirement for each recipient to have their own trust. After assets are pooled and invested collectively, funds are allocated to beneficiaries in accordance with their percentage of the overall sum.
A special needs trust is a legal arrangement that safeguards access to public assistance for special needs individuals, while keeping their access to additional financial resources intact.
These trusts also allow flexibility to fund the following:
Regina I. Edwards is an experienced Atlanta special needs planning attorney. In the family law category, Regina I. Edwards was chosen for inclusion on Georgia Super Lawyers’ 2015 Rising Stars list.
Here are our other practice areas:
If you don’t believe us, read testimonials from our clients. We will collaborate with you to develop a special needs estate plan to protect your special needs child’s public benefits and their future.
Schedule a consultation with Edwards Family Law as soon as possible!
Lawrenceville Office
234 Luckie St.
Lawrenceville, GA 30046
Phone: (770) 854-0777
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Buckhead Office
3476 Peachtree Rd NE
Atlanta, GA 30326
Phone: (770) 854-0777
We serve clients throughout Georgia for estate planning cases:
Each case is different, but we can share what clients typically struggle with when they make their initial calls to us:
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Professional and attentive staff. Our office has partnered with Edwards and Edwards on real estate closings and all good experiences.
Highly Recommend!!! Regina and her team provide an incredibly smooth client-experience where you know exactly what is expected of you, and what they are going to do for you. Their communication policy is odd at first, but results in excellent communication, they have tremendous knowledge of the law, and do what they say the will do.
The trustee may spend funds from the trust to buy things your loved one needs. The trustee may purchase goods and services like personal care assistants, trips, furniture for the home, medical and dental costs, education, vehicles, physical treatment, and even leisure activities.
You could create a Special Needs Trust to shield your special needs family member from prospective creditors. The assets in the trust would not be available to the plaintiffs, for instance, if your incapacitated beneficiaries were the subject of a personal injury lawsuit.
Yes. A first-party or “self-settled” special needs trust safeguards any significant assets your child may have in their name, such as a court settlement or inheritance, and uses them to pay for the child’s care.
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