Special Needs Trusts
April 27, 2012 By Law Offices of Richard B. Schneider, LLC
A Supplemental Needs Trust, also known as a Special Needs Trust, is a specific legal Trust designed to benefit an individual who has a disability while retaining their need-based benefits. This can be a powerful estate planning tool for those who have loved ones that may experience a chronic illness or be physically or mentally challenged. We answer some of the most frequently asked questions regarding Supplemental Needs Trusts.
Why would someone need a Supplemental Needs Trust?
A Supplemental Needs Trust enables a person with a physical or mental disability, or an individual with a chronic illness, to have an unlimited amount of assets held in Trust. In a properly drafted Supplemental Needs Trust, those assets are not counted for certain need-based governmental benefits.
Our family does not need government benefits, so why bother with a Supplemental Needs Trusts?
Even if you do not need assistance now for a disabled family member, this estate planning tool may be useful to your relative both now and later. A Supplemental Needs Trust is not subject to creditors or judgments, protecting those assets for your loved one’s use.
Can’t I just leave my family member money through a will?
An inheritance as little as $2,000 may interrupt your relative’s government benefits, such as Medicaid or SSI. On the other hand, a Supplemental Needs Trusts may provide extra money for special events, vacations, and even certain care or treatment that Medicaid or SSI will not pay for.
If you have a loved one who is suffering from a chronic illness or physical or mental impairment, talk to an estate planning attorney to see if this type of trust could help in your situation.
ABOUT THE AUTHOR: Richard Schneider
Experienced estate planning attorneys Portland OR of the Law Offices of Richard B. Schneider LLC offers estate planning and business planning resources to residents of Portland OR.
Copyright Law Offices of Richard B. Schneider, LLC
More information about Law Offices of Richard B. Schneider, LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
A Supplemental Needs Trust enables a person with a physical or mental disability, or an individual with a chronic illness, to have an unlimited amount of assets held in Trust. In a properly drafted Supplemental Needs Trust, those assets are not counted for certain need-based governmental benefits.
Our family does not need government benefits, so why bother with a Supplemental Needs Trusts?
Even if you do not need assistance now for a disabled family member, this estate planning tool may be useful to your relative both now and later. A Supplemental Needs Trust is not subject to creditors or judgments, protecting those assets for your loved one’s use.
Can’t I just leave my family member money through a will?
An inheritance as little as $2,000 may interrupt your relative’s government benefits, such as Medicaid or SSI. On the other hand, a Supplemental Needs Trusts may provide extra money for special events, vacations, and even certain care or treatment that Medicaid or SSI will not pay for.
If you have a loved one who is suffering from a chronic illness or physical or mental impairment, talk to an estate planning attorney to see if this type of trust could help in your situation.
ABOUT THE AUTHOR: Richard Schneider
Experienced estate planning attorneys Portland OR of the Law Offices of Richard B. Schneider LLC offers estate planning and business planning resources to residents of Portland OR.
Copyright Law Offices of Richard B. Schneider, LLC
More information about Law Offices of Richard B. Schneider, LLC
View all articles published by Law Offices of Richard B. Schneider, LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
