Special Needs Planning

A special needs trust offers a way to provide financial assistance to your disabled loved one while accounting for public benefit rules.

Instead of directly transferring money to your disabled child or spouse, you place your funds into this trust. This strategy can help avoid having those funds counted against them under applicable benefit rules. 

If you have a disabled family member, you can select one of two types of special needs trusts to support their planning:

First-Party Trust

Funded using the disabled person’s own money, such as an inheritance or other proceeds, and established by the person with the disability or their legal representative. Under applicable law, remaining funds may be subject to repayment requirements for state Medicaid benefits paid during the beneficiary’s lifetime.

Third-Party Trust

Created and funded by someone else, such as a parent or grandparent. Because these funds never legally belonged to the beneficiary, remaining assets are generally distributed according to the trust terms when the disabled individual dies, subject to applicable law.

In addition to special needs trusts, there are also ABLE accounts. An ABLE account is a separate savings tool that may allow an eligible person with a disability to save for qualified disability expenses, such as transportation, health care, housing, and education, while accounting for applicable benefit rules.

An ABLE account and a special needs trust serve different planning purposes, so families may need to evaluate them together rather than treat them as interchangeable.

Trustee Selection for a Special Needs Trust

A trustee manages trust assets and follows the trust terms. Families may consider a prospective trustee’s reliability, organization, willingness to communicate, understanding of the beneficiary’s needs, and ability to follow applicable benefit rules.

Trustee responsibilities can include reviewing requests for distributions, documenting distributions, coordinating with caregivers, and communicating with family members when appropriate. The trustee’s role is different from the roles of a caregiver, benefit representative, or family decision-maker.

Family Continuity Planning

A family-centered plan can identify who may provide care, who may manage trust assets, where important records will be kept, and how future caregivers can learn the beneficiary’s routines and preferences. We help families understand how these decisions affect spouses, children, and loved ones with special needs before documents are finalized.

Parents and caregivers can review beneficiary designations, wills, powers of attorney, healthcare documents, and trust funding so that one document doesn’t conflict with another. Planning can also account for changes in housing, education, employment, support services, health, and family relationships over time.

Planning Can Be Challenging

Your disabled loved one may rely on your support in many aspects of their life.

Simultaneously, you’re managing the complexities of government benefits and administrative hurdles.

• But what happens when you’re no longer here?
• How might their benefits be affected?
• Who will help support their safety and well-being in your absence?

We understand your unwavering desire for the best possible future for your disabled loved one.

Through special needs planning, you can craft a comprehensive plan that can support their long-term well-being and give you peace of mind today.

We Are Here to Help with Your Special Needs Planning.

Preparing for the lifelong care of your loved one might seem difficult, but you’re not alone.

Our team possesses the experience, knowledge, and understanding required to navigate the intricate regulations surrounding special needs trusts.

Rest assured, we are here to provide you with the legal tools and support you need to shape the future you envision for them.

Advantages of a Special Needs Trust

A Special Needs Trust offers more than just accounting for public benefits.

Here are some additional advantages to support your loved one with disabilities:

• Caregiver & Trustee Roles
  The planning process can address caregiving and trustee roles within the family’s broader plan.
• Family Contributions
  A Special Needs Trust can allow family members to contribute directly to the trust. The tax treatment of contributions depends on the family’s circumstances and applicable rules.
• Trustee Guidance
  The trust document can provide guidance for a trustee managing distributions.
• Enhancing Quality of Life
  A Special Needs Trust may support a wide range of needs, from transportation and education to personal care, when permitted by the trust and applicable benefit rules.

A Special Needs Trust is an important planning tool for your disabled loved one.

Our team can assist you in structuring the trust around your specific circumstances and explain how it may relate to your loved one’s benefits and broader estate plan.

Speak with a special needs lawyer in Asheville for clear explanations of special needs planning, trust funding, and the next steps for your family.