Setting Up a Special Needs Trust: What You Need to Know

 Posted on September 01, 2022 in Estate Planning and Administration

If you have a loved one with special needs, you may be looking for ways to provide for their future. One option is to set up a special needs trust. A special needs trust is an estate planning tool that can help you manage assets for your loved one's benefit. There are many advantages to using a special needs trust, and this blog will discuss some of the key benefits.

Supplemental Needs Trusts in Texas 

Special needs trusts, also called supplemental needs trusts, ensure that a disabled person or an individual with special needs receives the care he or she needs. For example, a grandmother caring for a grandchild with cerebral palsy may worry about the care her grandchild will receive once she has passed away. In a situation like this, a special needs trust may be set up to provide consistent financial support for the child even after the grandmother dies. Funds from a special needs trust may be used to pay for medical expenses, in-home care, therapy, housing, and other needs. 

Protecting Assets and Supplementing Government Benefits 

One of the main advantages of using a special needs trust is that it can help you protect your loved one's eligibility for government benefits. If your loved one has significant assets in his or her own name, he or she may not be eligible for needs-based government benefits like Medicaid. However, if the assets are held in a trust, the assets will not be counted when determining eligibility for government benefits. 

Another advantage of using a trust is that it can help you manage and control how the assets are used. You can specify in the trust agreement how the assets are to be spent, and you can appoint a trustee to oversee the trust and make sure the assets are used according to your wishes.

If you are considering setting up a special needs trust for your loved one, it's important to work with an experienced estate planning attorney. An attorney can help you choose the right type of trust for your situation and draft the trust agreement.

Contact our Tarrant County Estate Planning Lawyers for Help

Estate planning can be overwhelming and complicated. Fortunately, you do not need to figure everything out on your own. Contact the Hood County estate planning attorneys at Cain & Kiel Law Firm to learn more about special needs trusts or get started on creating a comprehensive estate plan for your family. Our attorneys can help you understand your options and make sure your estate plan meets your unique needs. Call us today at 817-645-1717 to schedule a confidential consultation.

Source:

https://www.hhs.texas.gov/handbooks/medicaid-elderly-people-disabilities-handbook/f-6000-types-trusts