A “special needs trust,” also known as a “supplemental needs trust,” is an essential legal mechanism designed to protect assets for the benefit of a disabled person without disqualifying them from vital needs-based government benefits like Supplemental Security Income (SSI) and Medicaid. At King & King Law Firm, we understand the complexities involved in ensuring that your loved ones with special needs are provided for, both now and in the future.
Why Establish a Special Needs Trust?
Government benefit programs like SSI and Medicaid have strict limits on the countable assets an individual can possess, often capping these assets at $2,000. Even small gifts or inheritances can disqualify a disabled individual from these crucial benefits unless these assets are protected by a special needs trust. This type of trust allows for the allocation of funds that can be used to improve the quality of life for your loved one without jeopardizing their eligibility for government support.
- Protect Eligibility for Benefits: The primary purpose of a special needs trust is to ensure that a disabled individual continues to qualify for needs-based benefits while also having access to additional funds that can enhance their quality of life.
- Cover Essential Expenses: These trusts can cover a wide range of expenses, including medical care, personal care, education, transportation and recreational activities that are not covered by government programs.
Types of Special Needs Trusts
There are different types of special needs trusts designed to fit various situations:
- Self-Settled Special Needs Trust (First-Party Trust): This type of trust is funded with the disabled person’s own assets, such as a personal injury settlement or inheritance. It is also known as a “self-settled trust” and is governed by specific federal guidelines. The trust ensures that these assets can be used for the benefit of the individual without disqualifying them from SSI or Medicaid.
- Third-Party Special Needs Trust: This trust is funded by assets from someone other than the disabled individual, typically a parent or other family member. It is designed to receive gifts, inheritances or other funds for the benefit of the disabled person while maintaining their eligibility for government benefits.
- Pooled Special Needs Trust: Managed by a non-profit organization, this type of trust combines resources from multiple beneficiaries for investment purposes but maintains separate accounts for each individual. It is a cost-effective option that provides the benefits of a special needs trust with professional management.
Our Personal Connection to Special Needs Planning
Having individuals with special needs in our own family has made this area of the law deeply important to us at King & King Law Firm. We are passionate about helping families navigate the complexities of special needs planning to ensure that your loved one’s future is secure.
- Personalized Attention: We take the time to understand the unique needs of your family and provide customized legal solutions.
- Comprehensive Planning: Our team will guide you through every step of the process, ensuring that the special needs trust is structured to provide maximum benefit to your loved one while preserving their eligibility for government programs.
How King & King Law Firm Can Help
At King & King Law Firm, we are dedicated to providing expert guidance and support in establishing special needs trusts that meet the specific needs of your loved ones. Our experienced attorneys are here to help you create a plan that ensures your family member is cared for and protected.
- Expert Legal Advice: We provide clear, understandable advice tailored to your family’s circumstances.
- Ongoing Support: We offer continuous support to adapt the trust to any changes in your loved one’s needs or in the law.
