Families with loved ones who have disabilities face unique challenges when planning for the future. Special Needs Planning ensures that these individuals receive financial support without jeopardizing their eligibility for government benefits, including Medicaid and Supplemental Security Income (SSI).
Key Tools in Special Needs Planning:
· Special Needs Trust (SNT): A trust designed to hold assets for a person with disabilities while preserving their eligibility for public benefits.
· ABLE Accounts: Tax-advantaged savings accounts for individuals with disabilities.
· Guardianship: Legal authority to make decisions for a disabled individual who cannot do so independently.
By incorporating these tools into your estate plan, you can provide for your loved one’s future needs while maintaining their financial and legal protections.
Planning for a Loved One with Special Needs
When it comes to Special Needs Planning, it is wise to consider creating a Special Needs Trust to protect the financial future of an individual with a disability. Also known as “a supplemental needs trust,” this type of trust preserves eligibility for federal and state benefits. Special Needs Trusts fall generally into these main categories:
§ Third-Party SNTs, where one person creates and funds the trust for the benefit of someone else.
§ First-Party SNTs which are created by or for the person with special needs using that person’s own money.
§ Pooled trusts are an alternative if you can’t come up with a good choice for trustee, or if you are only putting a small amount of money into the trust. There are both third-party and first-party pooled trusts.
Special Needs Planning at the Farr Law Firm
If you have a loved one with special needs and you want to ensure your loved one is provided for throughout his or her lifetime, it would be a wise idea to contact an experienced Special Needs Trust attorney such as those at the Farr Law Firm. Determining a plan for your loved one prior to needing it provides a sense of peace of mind, security, and reassurance. When it comes to Special Needs Planning, the attorneys at the Farr Law Firm can guide you through this process.
