Why have an attorney create a special needs trust?
Do you have a loved one or a family member who requires special care? Ensure that they’re protected even if you’re incapacitated or suddenly pass away. Setting up a special needs trust can be difficult for you to do on your own. Get more details on how LaCava Law Firm, LLC in St. Charles, IL can assist you with a special needs trust to make sure your special needs family member is protected. You can get in touch with our special needs estate planning attorney Michael LaCava by calling (630) 444-7304 or through our contact form.
Most special needs trusts fall under irrevocable trusts since they are established for a physically or mentally challenged individual. However, there are a few key differences between an irrevocable trust and a special needs trust. A special needs trust will be handled by an appointed trustee to provide your loved one with the care and assets they need. The funds in your special needs trust aren’t subject to creditors or seizure. The special needs trust that you create will always be available to give your uniquely challenged family member is cared for.
That depends on who you trust to handle the job. A trustee of a special needs trust needs to be able to make sound financial decisions and ensure that your loved one receives the funds they need for care, education, or other necessities. Trustees are typically very close friends or family members, but banks and financial institutions can also function as the trustee of a special needs trust.
Yes. If a special needs adult holds more than $2,000 in assets, they will be ineligible for social security benefits. The good news is that a special needs trust doesn’t count towards the $2,000 since the trust is handled by your assigned trustee, not by your loved one. A special needs trust is established specifically to enable your family member to receive the support they need while remaining eligible for government benefits.
Special needs trusts also must comply with the federal Omnibus Budget and Reconciliation Act (OBRA-93) by the following guidelines:
- A special needs trust has to be created before the disabled individual’s 65th birthday.
- You have to execute a trust document, appoint a trustee, and fund the trust.
- The trust document has to declare that it provides a mentally or physically challenged individual with supplemental and care beyond what is provided by the government.
- The trust document has to name a trustee and detail the powers that they have over the trust.
If you’re ready to make sure that the uniquely challenged individual in your life gets the protection they need, get in touch with LaCava Law Firm, LLC in St. Charles, IL. Attorney Michael LaCava has assisted clients in special needs trusts and asset protection. From making sure that your trust meets the guidelines set by the government and provides your loved with the funds and care that they need if you’re not able to be there. Reach out to Michael by calling (630) 444-7304 or through our contact form to start planning a special needs trust for your family.