Special Needs Trusts
A special needs trust allows an individual, who establishes the trust, to provide for the needs of a physically or mentally disabled person. It does so in a way that does not adversely affect any government benefits the disabled person is receiving. A disabled individual can receive income or possess assets from a trust. That income or those assets may exceed the financial guidelines of a government sponsored program. If they do, the individual will lose their government benefits if a special needs trust has not be established. As a compassionate Texas estate planning lawyer Clausell Law Firm, PLLC always enjoys seeing the peace of mind that can be brought about by proper estate planning. This is especially true when a special needs trust is successfully prepared and executed.
When done correctly, the assets in a special needs trust do not actually belong to the beneficiary. They belong to the trust, which then provides them to the individual in need. This aspect of the trust is what prevents a disabled person from losing their government program benefits. A special needs trust can hold real estate, cash, stocks and other assets. The benefits of a life insurance policy can also be paid through the use of this type of trust.
What can a Special Needs Trust Provide?
Commonly, a special needs trust can provide for medical expenses, eye glasses, dental expenses, annual checkups, rehabilitation and essential dietary requirements. It may provide transportation, including a vehicle purchase. Special equipment, training programs and education are also routinely provided for with a special needs trust. In some cases the trustee can give money for computer equipment, electronic equipment, trips and vacations, home health care aides and various types of entertainment, such as movies.
The key element in a special needs trust is that it be researched and written correctly. When done properly, it can provide the care and support that you want your heir to receive, while not endangering any government benefits. It is a very specialized type of trust that must meet certain legal requirements. You may have a situation where someone you love is not fully able to manage his or her own financial needs. Clausell Law Firm, PLLC would like to give you the help that may be needed to properly provide for their future.