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What is a
Special Needs Trust? A properly drafted Special Needs Trust
will allow a disabled beneficiary to qualify for government
benefits while also receiving benefits from the trust. A
Special Needs Trust is a tool to shelter and preserve assets
that would otherwise disqualify the trust beneficiary from
government benefits that have a cap on assets.
What are
the requirements for creating a Special Needs Trust? There
are very stringent requirements that must be followed in
drafting and administering Special Needs Trusts in order to have
the intended effect of qualifying the beneficiary for need-based
benefits. Depending on the source of the trust funds, some
special needs trusts must be court-approved and age restrictions
may apply. Special Needs Trusts are complex because they
involve state and federal government benefit laws and
regulations as well as trust laws.
Thompson &
Howle attorneys have experience preparing all types of Special
Needs Trusts, including
-
testamentary special needs
trusts, which are trusts created by a person’s Will to
receive property for the benefit of a disabled person (the
beneficiary) after the person who creates the trust dies;
-
third party inter vivos
special needs trusts, which are trusts created during a
person’s life-time to receive and manage property for the
benefit of a disabled beneficiary;
-
first party grantor special
needs trusts, which are trusts created by a court, parent,
grandparent or guardian of a disabled person under the age of
65 to receive and manage the disabled person’s own assets for
his or her benefit.
If you are
interested in creating a Special Needs Trust for a family member
or for yourself, Thompson & Howle can advise you about what type
or types of Special Needs Trusts would best suit your needs,
prepare the trust, and petition the court for approval of the
Special Needs Trust, if needed.
For Special
Needs Trusts already in existence, we advise and represent many
trustees in performing their fiduciary duties and filing regular
trust reports and accountings with the court. We also represent
beneficiaries of Special Needs Trusts who have questions or
concerns about how the trust is being administered or its effect
on their eligibility for government benefits.
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