How Can a Special Needs Trust Provide for My Disabled Loved One?
Do You Have a Disabled or Special Needs Loved One?
If a member of your family is disabled or has special needs, you can establish a special needs trust to care for that person financially. To set up a special needs trust in Massachusetts, you’ll need the services and advice of a Woburn trust attorney.
What are the advantages of setting up a special needs trust? How does a special needs trust work? If you give money directly–or leave cash in your will–to a family member who has special needs, that money could prevent your loved one from qualifying for public benefits.
But if you set up a special needs trust with the assistance of a Massachusetts estate planning lawyer, your family member can receive the care they need without jeopardizing eligibility for public benefits.
Is Your Special Needs Family Member Eligible for Public Benefits?
Disabled persons and others with special needs are often eligible for public assistance. Your loved one with special needs may qualify for government benefits like the Supplemental Nutrition Assistance Program (SNAP), MassHealth (Medicaid), and/or Supplemental Security Income (SSI).
The SNAP program offers resources for making retail grocery purchases. Supplemental Security Income benefits are paid each month to qualified disabled persons who have little or no income or other resources.
Additionally, for disabled persons who are eligible, MassHealth/Medicaid provides basic health insurance and pays for basic health care costs. Establishing a special needs trust before your special needs family member requires extensive care and treatment can save your family a substantial amount.
However, if your special needs loved one is currently eligible for SNAP, SSI, or Medicaid, that eligibility could change if you give or leave assets directly to that person. Disabled persons qualify for public benefits only when their incomes and financial resources are severely limited.
What Advantages Does a Special Needs Trust Provide?
Special needs trusts provide for family members without risking their eligibility for public benefits. Your loved one will have no control over the funds. The trust owns the funds, and it’s managed by a trustee, so the trust will have no effect on your loved one’s eligibility for benefits.
You may designate yourself as the trustee, and you may manage the trust as long as you live, but you’ll also name a successor trustee who will oversee the trust after you pass away and approve the expenditures for your special needs loved one.
If your special needs trust is established for a senior family member, a Woburn trust attorney can prepare a trust, which will help maintain their eligibility for public benefits and maximize their retirement savings.
If you set up a special needs trust for your child, you should name a guardian for the child in case you and the child’s other parent unexpectedly pass away. If you don’t name a guardian, the court will name one at that time, but the choice of a guardian for your child can and should be yours.
What Else Should You Know About Setting Up a Special Needs Trust?
No two special needs trusts are exactly alike. A Massachusetts estate planning lawyer can prepare a trust that meets your family member’s specific needs. When you and your lawyer establish a special needs trust:
- The text of the trust document must be written carefully. You should clearly and plainly state that the trust is established for the “supplemental and extra care” of your family member beyond what public benefits offer.
- The trust will not offer cash directly to your loved one. The trustee will make direct payments, for instance, to healthcare providers, utilities, transportation providers, and others on behalf of your family member.
- A special needs trust is an irrevocable trust, so once it takes effect, you may not change or cancel the trust–or any of its terms or conditions–without court approval. The funds in the trust can’t be seized by creditors, made subject to liens, or put at risk by lawsuits.
- The trust’s beneficiary must be younger than 65 years old when the trust takes effect.
What Are “Pooled” Special Needs Trusts?
A special needs trust is “pooled” when it names as the trustee a non-profit organization rather than an individual. The organization pools the funds it invests from different trusts while maintaining each account individually and naming an acting trustee to work with the beneficiary.
A special needs trust that is pooled assures that the trust funds will be handled appropriately, that the beneficiary will be properly cared for, and that the beneficiary will remain eligible for public benefits. A Woburn trust lawyer can explain to you the details about pooled special needs trusts.
In What Other Ways Will A Trust Lawyer Help You?
For many families, a special needs trust for a family member is only one part of an all-inclusive estate plan that may include a will, other types of trusts, and a Massachusetts Health Care Proxy that lets you name someone to make medical choices for you when you can’t make those decisions yourself.
Your estate planning lawyer will see to it that your special needs trust document is easy to read, that nothing is overlooked, and that you consider your options carefully. If you have family members who depend on you, a comprehensive estate plan can ensure that they will be cared for after your death or when you can no longer care for them yourself.
Peace of mind about your family’s future begins by contacting a Massachusetts estate planning attorney, but with thousands of attorneys in Massachusetts, how can you find an attorney who’s right for you and your family?
Let the Heritage Law Center Team Work on Your Family’s Behalf
At the Heritage Law Center, attorney Matthew G. Karr leads a team of experienced estate planning professionals. When we prepare a trust or another legal document for you, we explain the process and ensure that the document meets your needs.
The Heritage Law Center also represents beneficiaries, handles probate disputes, and provides estate planning services to families and individuals throughout Massachusetts. We don’t know the future, but we can help you prepare for whatever the future may bring.
To learn more about special needs trusts or any other aspect of estate planning, call the office of the Heritage Law Center in Woburn at 617-299-6976. We will offer sound legal advice, and we will prepare a special needs trust and/or the other estate planning documents you may need.
