When thinking about the future, people often come to terms with the idea that they will have to create a will. In this will, they plan the administration of their estate and make sure all their possessions are given to the proper beneficiary. Although this can be a tough topic to face, it proves to be beneficial in the end. Individuals may also wish to leave their pets to a specific person through a pet trust. If you are the guardian of a person with special needs, you should consider a special needs trust. With this trust, you can ensure the health and safety of that individual when you are gone. To learn more about this matter, contact our legal professionals for guidance.
What factors are considered in a special needs trust?
With certain special needs individuals, they need the care of another party. As a dependent individual, they require the continuous support of another party. If you are the party that they depend on, you should plan for their future. A special needs trust can address a few concerns that may involve these individuals. It will decide who will look after the dependent party once you pass. If these individuals are receiving public benefits, it can plan to guarantee the continuation of those benefits. Through the trust, you can also provide extra money that these dependents may need to sustain their standard of living.
What are the different types of special needs trusts?
There are three main types of special needs trusts: a third party special needs trust, a first party special needs trust and a pooled special needs trust. Each trust has a specific set of guidelines to follow to allow for the full benefits of the trust.
A third party special needs trust is made by someone other than the dependent special needs party. It can be made during the lifetime of the party or at their death. This trust can be funded using the compensation that comes from life insurance policies. Also for these funds, other family members can provide gifts to the trust.
A first party special needs trust can only be made by the legal guardian, parent or grandparent of the dependent individual. This trust is funded through the money of the beneficiary only. It must be an irrevocable trust. Also, the beneficiary must be under the age of 65. Public agencies may require reimbursement rights upon death. When creating these funds, individuals usually do so when a beneficiary is to inherit the funds or receive the funds from a lawsuit.
A pooled special needs trust is given assets from different members and gathers them together into a larger investment fund. This fund requires the establishment of a disability and the trust needs to be developed through a nonprofit organization.
To best understand these funds and find what one suits your situation, call us for a consultation. We understand your desire to take care of your loved ones and want to assist you in the process.
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.