Why Special Needs Trusts May Be Essential for Individuals Who Require Lifetime Care
When an individual requires lifetime care — for a disabling condition that they have had since birth, for a medical condition that has arisen later in life, or due to a serious injury — it is often crucial to set up a special needs trust (SNT). A special needs trust is a particular type of irrevocable trust that can be established in Connecticut either by the disabled party themselves and for their own benefit (as a first-party SNT), or by a relative for the benefit of a disabled child or grandchild, for example (as a third-party SNT).
If a person has a disability that will never improve and for which they will require lifetime care, do they need to have a special needs trust? Our Canton trusts lawyer can explain why an SNT may be particularly important depending on your circumstances, and we can speak with you today about your own or a loved one’s medical situation and setting up a special needs trust in Connecticut.
First-Party Special Needs Trusts Are Essential for Disabled Individuals Who Receive Personal Injury Payouts and Require Lifetime Care
If you were injured in an accident or intentional act caused by another party, and that injury left you permanently disabled, you may have filed a personal injury lawsuit. Whether your personal injury case is pending, or you have recently accepted a settlement or won a large damages award, it will be essential to establish a first-party special needs trust for your settlement or award. Without placing these assets into a trust, you will become ineligible for benefits programs that you need during your lifetime care. By creating a SNT, you can still have access to your personal injury money for paying bills and supplementing other needs without losing access to SSI and Medicaid, for example.
Third-Party Special Needs Trusts Are Essential for Disabled Individuals Who Will Inherit Assets and Require Lifetime Care
Similar to the above, if you have a disabled child or grandchild to whom you want to leave assets, if that child or grandchild will require lifetime care, it will be important to protect the inheritance while ensuring your loved one can still receive disability-related benefits. A SNT can allow you to do this.
Contact a Canton Special Needs Trust Attorney
Whether you were injured and received a settlement or damages award that you need to protect while receiving lifetime care, or someone you love is in a similar situation, it is important to find out about establishing a special needs trust in Connecticut. As we discussed above, this is a very specific type of trust that provides benefits to a disabled adult while allowing them to continue receiving and being eligible for public benefits such as Medicaid and Supplemental Security Income (SSI) payments. If you have any questions, or if you are ready to set up a special needs trust in Connecticut, an experienced Canton trust lawyer at the Law Office of Brian S. Karpe can help you. Contact our firm today to learn more about the trusts and other estate planning services we provide to Connecticut residents.
Source:
cga.ct.gov/2023/pub/title_45a.htm
