(732) 361-2533 Special needs trusts exist to provide individuals with disabilities the opportunity to collect an inheritance or other financial support without jeopardizing their government benefits.
Creating a special needs trust in Freehold is complicated, but a skilled estate planning attorney could help a person understand the purpose of these arrangement and how to draft one. Creating a special needs trust alone could put your loved one’s future at risk. Before you consider developing a plan without help, discuss your situation with a Freehold special needs planning lawyer.
How do Special Needs Trusts Work?
Special needs trusts—commonly known as supplemental needs trusts—protect eligibility for vital government benefits for individuals living with disabilities. For example, programs administered through the Social Security Administration often require means-testing, which evaluates a person’s income. If a disabled individual’s income is above a certain threshold, they no longer qualify for benefits.
The most common example of these programs is Supplemental Security Income or SSI. Under SSI, blind or disabled individuals are limited to less than $2,000 in a bank account at any one time. When a person on SSI receives an inheritance, it could bar them from collecting benefits.
However, a special needs trust shields an inheritance or other acquired assets from being considered in income calculations. These types of trusts place benefits in a separate account. While the money is available to them, a trust safeguards the assets.
A special needs trust aims to secure a stable future for a person with disabilities. A knowledgeable attorney in Freehold could help a family member develop a comprehensive plan for a disabled individual.
How Can a Special Needs Trust be Used?
A disabled individual can use a special needs trust in several ways. Trusts developed for disabled person are typically used to provide a person with benefits that the government will not pay.
For example, a person could use a special needs trust fund to pay for medical expenses and equipment not covered by government programs. A trust may pay for dental visits, wheelchairs, or other accessibility technology. Similarly, arrangement may also provide payment for rehabilitation, therapy, education, and other necessary equipment, including computers or electronics to be used in a person’s education.
Some people also rely on special needs trusts to travel. In addition to managing the cost of traveling itself, a trust may cover the cost of a necessary companion for a disabled person.
Often, special needs trusts might also cover miscellaneous expenses like legal fees and insurance policy premiums. However, ensuring that a person has access to an inheritance could help them create a trust. An experienced lawyer in Freehold could advise a person on how special needs planning can benefit a disabled person and offer them financial assistance throughout their life.
Contact a Freehold Special Needs Planning Attorney Today
Special needs planning trusts should be carefully drafted and administered. Failing to create a trust properly could put your loved ones in a difficult position and prevent them from collecting the government benefits they rely on.
A Freehold special needs planning lawyer could provide the necessary guidance to ensure documents are accurate while securing the finances of a person with disabilities. Reach out to a legal team member now to find out how you can help your loved one in the future.
