Canton Special Needs Trust Lawyer
If you or your loved one require financial assistance due to disability, but you or they currently do not meet the qualifications due to assets, a special needs trust may be the answer to preserve any assets in question, and qualify for the much-needed financial assistance from the federal government. A special needs trust enables chronically ill, physically disabled, or mentally disabled individuals to qualify for certain federal assistance programs by reducing their assets, or the assets that they may eventually receive from inheritance, gifts, or even a personal injury settlement award. Canton special needs trust lawyer Law Brian S. Karpe will walk you through the steps of such a trust and help you determine if a special needs trust would be beneficial in your or your loved one’s situation.
What Does a Special Needs Trust Do?
Supplemental Security Income (SSI) and Medicaid require a very small net worth in order for qualification. Special needs trusts, which are also known as supplemental needs trusts, are generally created by parents of adult children with disabilities, or by family members of elderly or otherwise disabled loved ones. The purpose of a special needs trust is to reduce the disabled person’s assets, without simply spending it away, to qualify for government assistance programs.
How a Special Needs Trust Works
A special needs trust essentially removes ownership of the assets placed within it from the disabled person. As such, the trust is managed by a trustee. The trustee is responsible for using the assets within the special needs trust to pay for the individual’s needs. And, because the disabled person does not technically own the assets, they still qualify for SSI, Medicaid, and Social Security benefits. It should be noted that choosing a trustee that is dependable and trustworthy is imperative. They must be trusted to only use the assets in the trust for the benefit of the special needs person. The trustee can be a close family member or a trust company that handles such matters professionally.
The Two Types of Special Needs Trusts
- Third-party special needs trust—The special trust is funded with assets that currently belong to another party, such as assets from a family member, gifts, or inheritance.
- Self-settled special needs trust—The special needs trust is funded with assets belonging to the special needs person.
Depending on the assets involved that will be used to assist the disabled person, one or even both types of special needs trusts can be created.
Contact a Canton Special Needs Trust Lawyer Today
With your loved one’s well-being at stake, special needs trusts need to be drafted carefully and accurately. Trustees should be chosen with a high degree of care as well. It is important that the assets within the trust are used as intended—only for the benefit of the special needs individual. To get started, we urge you to call the Law Office of Canton special needs trust lawyer Brian S. Karpe. Contact us today at 860-217-1458 to schedule a free consultation.