Founder
For parents and guardians who are responsible for providing for a child or grown adult with special needs, worries about providing for the special needs individual once the parent or guardian dies are common. In most cases, caregivers want to leave money to a disabled person to ensure that care continues after the caregiver’s death, but are unsure of how to leave the money for myriad reasons, varying from the disabled person’s inability to manage the money on their own to jeopardizing state and federal disability benefits, like Social Security and Medicaid.
One viable option for parents and guardians may be establishing a special needs trust, also known as a supplemental needs trust. If you are the caregiver of a disabled person in Massachusetts, consider the following information about special needs trusts:
What Is a Special Needs Trust?
A trust is a way of holding assets or money for the benefit of another party. The trust is managed by a trustee, who has the power to distribute assets in the trust to the beneficiary per the terms of the trust agreement. A special needs trust is a trust that is designed specifically for those with disabilities, and is written to allow for:
- The beneficiary (the disabled person) to benefit from the trust; and
- The beneficiary to continue receiving state and federal benefits.
In order to allow for the latter with the former, a trust must be constructed in a very specific way. This is known as a special needs trust, where a trustee is appointed who has the ability to use assets in the trust to provide for the disabled person without leaving assets directly to this person. Because the disabled person does not have direct access to the money (remember, the trustee manages the money and uses it at their discretion), state and federal aid programs will not be impacted. Assets in the trust can be used by the trustee to provide for the disabled person in myriad ways, including purchasing services and goods ranging from housing to food, medical expenses to personal care, recreational purchases and more.
Establishing a Special Needs Trust
There are a number of concerns and complications associated with creating a trust to provide for a disabled loved one. In addition to ensuring that the trust is constructed in a manner that will preserve state benefits, the creator of a trust must also choose a trustee that they can trust, must decide how much money to put in a trust, and must also make decisions about how funds will be split amongst other children.
All of these decisions, and the legal language surrounding a trust, are complex. In order to learn more about special needs trusts, and establish one moving forward, it is imperative that you work with an experienced estate planning attorney.
At the law offices of Patricia Bloom-McDonald, Attorney at Law, you will find the legal assistance you are looking for. Patricia Bloom-McDonald is experienced in estate planning law and the formation of myriad trust types, and will competently advise you.
Call her today for a free initial consultation at 508-646-9888. You can also get in touch with her online at www.McBloomLaw.com.