A special needs trust can be beneficial in the right situation, but it’s not designed for everyone. Instead, they come into play in unique circumstances involving physically or mentally disabled or chronically sick individuals receiving public assistance.
While special needs trusts benefit those in need, it helps to know which type of special needs trust works best for you and your situation. Below, we’ll explain who special needs trusts are designed for and why they’re so helpful in multiple situations.
To discuss a special needs trust, give us a call today at (888) 988-5503.
Who a Special Needs Trust Benefits
First, you should understand what a special needs trust is and who really benefits most. These types of trusts are legally designed to allow someone with a disability—or special needs—to receive funding without the concern of losing other public assistance benefits.
Public assistance programs are usually available to those who make under a certain amount of money. If someone is receiving benefits for their disabilities, some situations where they earn an income may cause them to lose their eligibility for those benefits. However, a special needs trust allows the additional financial support without impacting the special needs individual’s benefits.
Another big benefit of a special needs trust is the ability to protect assets that would benefit the disabled party. For instance, a special needs trust protects any assets gifted to the special needs individual. This type of trust can also receive legal settlements on behalf of the special needs party.
The Different Types of Special Needs Trusts
When it comes to special needs trusts, there are different types that we can help you navigate:
- First-Party Special Needs Trusts: If you suffer a disability following an injury, you may establish your own trust—in this case, a first-party special needs trust. Where third-party special needs’ trusts are managed by someone else, a first-party special needs trust allows you as the person with a disability or special needs to fund the trust. This type of trust allows you to protect assets and plan for your future while still receiving public assistance benefits.
- Third-Party Special Needs Trusts: A third-party special needs trust is established by someone other than the individual with a disability or special needs. Instead, a family member or loved one funds the trust to help protect assets and aid the person with special needs throughout the donor’s life and after his or her death.
We can also help with pooled special needs trusts, which holds the beneficiary’s assets. It helps to speak with a professional to learn what options work best for you.
Why Special Needs Trusts Are Beneficial
In many situations, someone with special needs has to choose between a specific amount of income and the public assistance benefits he or she receives. A special needs trust changes this scenario. With a special needs trust, the individual with a disability or special needs will have more opportunities to receive an income while protecting public assistance eligibility.
At Legacy Enhancement Trust, we know the many benefits of a special needs trust, and we want to help you understand your options. Our team is proud to offer affordable fees and significant experience in dealing with public assistance programs. Our advanced trust technology helps set us apart from the rest, and no matter what, you’ll always receive transparent care.
Your case will always be unique to your situation, and financial situations vary between all donors. Our team is here to explain all steps in the process while guiding you towards the legal documents you need. Trust us to steer you in the right direction for you and your loved ones.
Call us today at (888) 988-5503 to discuss a special needs trust and your needs.