Special Needs Trust Attorney in Springfield, MO
Whether as a result of a motor vehicle accident, workplace injury, or developmental disability, when a family member is disabled, there is an added layer of concern when planning for the future. Due to the high costs of medical care, durable medical equipment, or caregivers, few individuals who are disabled can afford to pay out of pocket for these costs.
Various government benefit programs, such as Medicare, Medicaid, Social Security (both Social Security Disability and Supplemental Security Income), food stamps, and HUD housing often make it possible for the disabled to avoid institutionalization and continue to live in the community. How do you make sure that your disabled love one is cared for without disrupting any government benefits they may receive?
A cornerstone of special needs planning is understanding the needs that disabled individuals will likely need to have met. These needs range from case management, medical care, social interaction, and housing options. When good planning for individuals with special needs is implemented, each of the various needs are addressed by using a combination of public benefits and private funds to supplement where public benefits are lacking.
Almost every program that serves the disabled has asset limits, which means the disabled individual is limited on how much he/she can have in the bank or in their name. The proper drafting and implementation of special needs trusts can be the perfect solution to have private funds available for the disabled beneficiary, while still maintaining eligibility for needed government aid.
Why are Special Needs Trusts Important?
Special Needs Trusts can help provide the “extras” that are not covered by government programs. Examples of “extras” that can be paid for using funds from a Special Needs Trust are things like dental care or hearing aids, clothes, funds to see doctors who do not participate in the Medicaid program, home modifications, and handicapped accessible transportation. It can also provide for funds for vacations, travel to see family members, and entertainment options.
Without proper planning, a disabled individual who receives an inheritance or settlement can be forced to waste thousands of dollars, and often times be worse off than they were before they received the funds. However, with proper planning, these funds can provide a safety net for the individual to be able to lead an active and fulfilling life.
When should a Special Needs Trust be set up?
Parents may consider setting up a Special Needs Trust when they begin their estate planning. If their disabled child will likely have long-term medical or support needs, the SNT can be a vehicle to supply the funding to provide lifetime quality care. Even if the child's future prognosis is unclear, it is never too early to put plans in place for contingencies such as the parents' sudden death or disability.
How is a Special Needs Trust set up?
The laws governing trusts are complex and are subject to change. Setting up a special needs trust requires coordinated planning with an elder law attorney knowledgeable in special needs planning with the goal being maximizing the disabled individual’s ability to access funds from an inheritance or the like without affecting their government benefits or potential for such benefits.
Managing the Special Needs Trust
Having a Special Needs Trust requires that a trustee be appointed. A trustee is one who manages another's property and may be a person, or an institution such as a bank. In this case, the trustee is the manager of the trust and has general unlimited discretion to use trust proceeds for the needs of the disabled individual. The SNT should be drafted in such a way as to direct the trustee how to use the trust's resources for the individual's specific needs.
The Special Needs Trust will likely exist for a long period of time. Thus, trustees should be chosen with longevity in mind, and the trust itself should be drafted to accommodate changing circumstances, such as the substitution or removal of a Trustee. After the death of the disabled individual, the trustee oversees the final arrangements and the SNT usually ends.
