Marietta GA Special Needs Lawyer on "What is a Special Needs Trust?"
Marietta GA Special Needs Lawyer on "What is a Special Needs Trust
?"
Because I am a Marietta, Georgia, special needs lawyer, I'm often asked, "Just what is a Special Needs Trust?"
To begin with, a special needs trust is legal entity put in place to hold the assets of a a person who has a mental or physical incapacity. The trust identifies a trustee whose function it is to manage the properties and assets and distribute them in accordance with the instructions of the trust. There typically are precise restrictions in how property can be spent to make sure they do not disqualify the named beneficiary from being eligible for state and federal government programs.
There are two principal types of special needs trusts. These are:
Self Settled Special Needs Trusts
In a self settled special needs trust the properties and assets in the trust are owned by the beneficiary. As an example, if the person becomes disabled as a result of negligence of a doctor or car crash, it may be possible that the beneficiary was paid money because of going to court. In this case, a self settled special needs trust would be created for the beneficiary to obtain and hold the settlement money to be able to still receive government benefits.
Third Party Special Needs Trusts
A third party special needs trust is established by a third party with funds which are owned by the third party. As an example, the parents of a child born with Down syndrome or autism might establish a special needs trust for their child as part of their overall estate plan. In the case of a third party special needs trust, family members can make lifetime gifts to the child.
Distributions for Special Needs Trusts
To be sure to continue to receive government benefits it is vitally important to direct the trustee not to spend money on products and services which are supplied by a government agency. If done correctly, the money in the special needs trust will not be counted as a resource. The trust must allow distributions only for special or supplemental needs. Certain instances of this might include dental care, specialized therapy, and services of a care giver. Improper distributions of a special needs trust can lead to a loss of government benefits, so it is critical that the trust be established and then maintained properly.
Who Should Set up a Special Needs Trust?
Not all Marietta special needs trust lawyers possess the education, expertise or information to make a special needs trust. You need to confer with an attorney who has experience in creating these trusts and who knows how to accurately counsel trustees.
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