A trust can be an important tool when building your estate plan. But trusts must be well thought out and carefully established, and hat especially holds true for a Special Needs Trust. Many people have questions regarding the ins and outs of a special needs trust. But don’t worry -that is why we are here to help you.
As estate planning and trust attorneys, we are often asked similar questions about special needs trusts. Some questions we are often asked are:
A Special Needs Trust can be established by a parent, grandparent, legal guardian or court to benefit a person with special needs. It can also be created by the individual with disabilities if they have the legal capacity to do so. There are 3 main types of SNTs: first-party (self-settled), third-party, and pooled trusts, each catering to different circumstances and funding sources.
The primary benefit of a Special Needs Trust is that it allows the beneficiary to receive financial support without jeopardizing their eligibility for government benefits. The trust can cover expenses not provided by public assistance programs, improving the beneficiary’s quality of life. However, there are limitations, such as restrictions on how the funds can be used and the need for careful management to ensure compliance with legal and regulatory requirements. Additionally, first-party trusts often have a Medicaid payback provision, requiring reimbursement to Medicaid for services provided upon the beneficiary’s death.
A Special Needs Trust (SNT) covers expenses that enhance the quality of life for a person with disabilities without affecting their eligibility for government benefits. Here are some examples of how you can use the funds from a Special Needs Trust:
A Special Needs Trust is a unique legal document that requires special attention. An attorney who knows the complexities of a Special Needs Trust can help you build a way to care for your loved one now and in the future.
When considering establishing a special needs trust for a loved one, working with someone who understands and has experience with these trusts is wise. At Estate and Probate Legal Group, we know the importance of having and correctly writing a Special Needs Trust.
This type of trust can be used now for a loved one; you don’t have to wait until you are gone for the Special Needs Trust to take effect for someone who requires it. Special needs adults can live independently but may not have a job to support themselves. And that is when an SNT can help them live an independent life.
Do you have questions about setting up a Special Needs Trust in Illinois? Contact the Estate & Probate Legal Group at 630-864-5835 today. Our experienced attorneys understand applicable laws and can advise you on the best options to protect your loved ones.
Areas we serve: Cook, DuPage, Kane, Lake, Kendall and Will counties
