What You Need To Know About Special Needs Trusts
Special needs trusts are a way to keep your disabled or otherwise dependent person financially secure for years to come. Special needs trusts are commonly established for disabled children or ailing spouses. These trusts are set in place, in part, to ensure that the intended recipient, known as a “beneficiary” is not disqualified from necessary government benefits or state programs. Such trusts also ensure that a beneficiary’s needs are met when you are no longer able to care for them.
A Special Needs Trust Is One Piece Of The Puzzle
A special needs trust can help the recipient qualify for important government programs. Some programs, such as Social Security Income, have income requirements. If the recipient makes over a set salary, they may no longer qualify for assistance. A special needs trust can allot a specific amount of money, over time, so that the recipient can continue to qualify for benefits.
Many people rely on programs such as Medi-Cal to afford the high expenses of long-term care facilities. Unfortunately, Medi-Cal can only cover certain expenses. Setting up a special needs trust may ensure that adults can go on living comfortably by paying for those unqualified expenses. A special needs trust is often just one piece of the financial puzzle for the long-term care of a disabled or dependent person.
Protection Against Financial Abuse
A special needs trust can also protect against financial abuse. Scammers may target vulnerable people such as the elderly or disabled. A special needs trust can help manage significant sums of money when disabled or dependent people need extra assistance. In return, the person charged with managing that money, known as a “trustee,” can receive compensation, over time, to help manage those finances and protect against financial abuse.
It is important to find the right trustee who will administer the funds on behalf of the beneficiary for years to come. This often means that the trustee will be a close relative, friend or a professional. Our attorneys can help you determine the appropriate trust administration method depending upon your circumstances.
Call Us For Counsel On Special Needs Trusts
These decisions are difficult because they will impact your loved one for years to come. At Conover & Grebe, LLP, our lawyers can offer experienced legal advice to establish a special needs trust. Call our office in Torrance, California, today at 310-776-9028 or request an appointment through our online contact form.