Davidson Law Group Answers Common Questions About Special Needs Trusts
Special needs trusts can provide peace of mind for families who have a loved one with disabilities. By setting up a Special Needs trust, you can support and protect your loved one without risking their eligibility for government benefits.
If you are creating a special needs trust for a loved one, you may be wondering what assets to leave to the trust when you pass. In today’s blog, Davidson Law Group helps answer this and other common questions regarding special needs planning and Special Needs Trusts.
How Does a Special Needs Trust Help?
Special needs can refer to many situations, including physical disabilities, chronic illness, mental disabilities, and emotional difficulties. Government benefits are a very important part of the support system for those with special needs. However, if someone with special needs holds too many assets, they become ineligible for government benefits. An individual must own less than $2,000 of countable assets in order to qualify for most benefits. A Special needs trust helps people avoid this problem because the trust holds the property instead of your loved one with special needs.
Related Post: How to Leave Property to a Special Needs Trust
What Role Does the Trustee Play?
After the trust is funded, you choose someone to serve as trustee who will have complete discretion over the trust property. He or she will be in charge of spending money on your loved one’s behalf. In addition to administering the trust, the trustee’s duties include paying taxes, keeping records, investing the trust property, and staying on top of the beneficiary’s needs. Simply put, it is a critical role in the special needs trust.
Will I Need a Lawyer?
You can create a special needs trust yourself, with the right guidance. But, there are times when it’s appropriate to seek the advice of a trusted attorney. Contact Davidson Law Group if you want to create a trust that will be funded with the loved one’s own assets, such as a settlement from a personal injury lawsuit, rather than your money. There are complex and state-specific rules that apply to these kinds of trusts.
Many families will benefit from the careful organization of the special needs trust to accommodate their unique situation. To get a personalized trust, consult our lawyers for help.
Related Post: Advice on Special Needs Planning
Contact Davidson Law Group Today
With expertise in disability issues, Davidson Law Group can assist you in making detailed plans for your child’s future. We will help you plan for the future of your loved one, so you can start saving and taking the right steps to prepare. Contact us in Fort Worth, Allen, or Tyler today!