Special Needs Trusts & Disabled Children Estate Planning
Build a stable financial future for your most vulnerable loved ones
Effective estate planning can address a multitude of scenarios and issues. For families with special needs children and loved ones, estate planning is especially needed.
Disabled individuals in Pennsylvania commonly seek eligibility for public benefits like Medicaid, like Social Security Income. The problem is that those benefits are considered “means-tested”. This type of benefit means that disabled people could lose their benefits with things like work income, or if they inherit too much money.
A special needs trust helps to solve this issue when you have a disabled child or family member. A special needs trust provides for the maintenance of these vulnerable family members or friends.
A New Castle special needs planning lawyer may be able to help you to protect your loved one’s future. Beacon trust attorneys could draft an agreement that provides for the needs of others while also creating benefits for you.
When Does Special Needs Planning Typically Occur in New Castle, Hermitage and Butler?
A variety of circumstances can lead to scenarios where an individual is unable to care for their own needs. This is almost universally true in the case of our children. However, many adults, due to either mental or physical limitations, require the support of other people or government programs. People who are responsible for providing this care may wonder how to protect individuals under their care after their deaths.
One choice is to create a special needs trust (SNT). An SNT allows a person to deposit funds for later distribution to the beneficiary. The future distributions are of a limited nature, thereby preserving access to public benefits.
A local estate planning attorney in New Castle or Hermitage or Butler could help you create trusts that provide for the special needs of your loved ones for years into the future.
The Benefits And Advantages Of Creating A Trust In A Special Needs Situation
A trust allows an owner of property to transfer assets to another for that person’s benefit. It is important to note that this transfer is not direct – meaning by way of gift or donation. Instead, the trustor nominates a trustee to take control over the assets, in a temporary form. This trustee then distributes the assets to the beneficiary for specific allowed reasons. This arrangement can be especially beneficial when providing for those with special needs. This is because the beneficiary does not directly benefit the assets until the transfer occurs. To preserve assets in the long term, a scheduled distribution can help .
Another benefit is the duty of trustees to maintain the property while it is in their care. According to Pennsylvania Consolidated Statute §20-7771, a trustee must perform their duties in good faith and according to the terms of the document. The trustee must act for the benefit of the beneficiary.
A New Castle estate lawyer could help someone who is considering special needs planning. We can draft a trust document that covers all of the needs of the individual under their care.
Reach Out To A Western Pennsylvania Special Needs Planning Attorney Today
Caring for the needs of those who are unable to take care of themselves is a top priority. Being responsible for the well-being of another who is unable to care for themselves can be difficult. However, it’s possible to arrange for that person to continue living in comfort.
Creating a special needs trust (SNT) is one way to ensure this comfort. This arrangement places assets into a trust that will distribute property to the beneficiary for specific purposes in the future.
The appointed trustee will make these distributions on your behalf. They also have a duty under the law to perform this role according to the terms of the trust.
A New Castle special needs planning lawyer could help you determine if this step is right for you and those under your care.
Give us a call today at (724)60-ELDER to learn more about how we could help you. You can also fill out the form below and we’ll get back with you to schedule your free initial evaluation.