Families caring for a person with a disability make many decisions that affect benefits, quality of life, and financial security. Good information reduces stress and helps you avoid costly mistakes. The Special Needs Alliance website provides reliable information, and its updated Handbook for Trustees is a practical guide for anyone managing a Special Needs Trust. […]
Special Needs Trusts FAQs: Answers for Parents of Children with Special Needs
If you are a parent of a child with special needs, a special needs trust (SNT) should be an essential part of your estate planning. Without one, leaving assets directly to your child—whether through a will or by default under intestacy laws—could jeopardize their eligibility for needs-based government benefits like Supplemental Security Income (SSI) and […]
What is a Letter of Intent for Child With Special Needs
A Letter of Intent (LOI) is an essential document for parents or caregivers that provides critical information about medical needs, routines, preferences, and long-term care plans of a child with special needs. It provides detailed guidance on medical care, daily routines, preferences, and long-term care plans, ensuring continuity of support if you are no longer […]
Can an Individual Create a First Party Special Needs Trust for His or Her Own Benefit?
A Special Needs Trust (SNT), also known as a Supplemental Needs Trust, is a trust created for a disabled beneficiary to hold funds in a way that preserves his or her eligibility for public benefits. There are three types of special needs trusts: A first party special needs trust is one that is funded with […]
What is a Pooled Special Needs Trust?
Special needs trusts are trusts that hold assets for a disabled beneficiary and distribute funds in a way that preserves the beneficiary’s eligibility to receive public benefits. Pooled trusts are special needs trusts established by non-profit organizations. Those who wish to join a pooled trust sign a joinder agreement. The joinder agreement dictates the trust’s terms. Each […]
What is the Difference between a First-Party and a Third-Party Special Needs Trust?
Understanding the differences between first-party and third-party Special Needs Trusts is important when planning for a loved one with special needs. Both types of trusts serve to protect the beneficiary’s eligibility for government benefits, but they are funded and managed differently. This article aims to clarify these differences to help you make an informed decision. […]
Would You Like A Will With That Special Needs Trust?
Several parents have contacted me recently about setting up stand-alone special needs trust for their children. Unlike a supplemental needs trust that is created in a Will and funded at death, a stand-alone special needs trust is established during one’s lifetime and funded immediately. Clients are often prompted to establish a stand-alone trust because relatives […]
Should I Disinherit My Child to Protect His Benefits?
All parents worry about protecting their children if the unthinkable happens. But those worries are compounded for parents of children with special needs who may never be able to support themselves. These children often rely on Medicaid and SSI for medical care and financial support. Both programs are means-tested. If a beneficiary has more than […]
Will a Uniform Transfers to Minors Account Negatively Impact My Child With Special Needs?
Uniform Transfers to Minors Accouts (UTMA) accounts are an easy and inexpensive way for parents, grandparents and other well meaning individuals to make irrevocable gifts to minors without the expense of creating a formal trust. They are easily established by opening the account in the custodian’s name “as custodian for [name of minor] under the […]
What Supplemental Expenses Can Special Needs Trusts Pay For?
Unlike a support trust which direct that funds be used for the health, welfare, and support of a beneficiary, a Special Needs Trust (SNT) is a discretionary trust created to supplement the beneficiary’s basic needs. By being structured in this way, the trust both preserves the public benefits available to a beneficiary and enhances the […]