If you have a loved one with special needs, you’ll likely do anything possible to support them. However, it’s critical to understand how to do so strategically, so as not to disqualify them from any benefits they receive. As such, it’s imperative to familiarize yourself with your estate planning options to learn the best way to help support your loved one. Generally, one of the best options is to create a special needs trust. If you’re interested in this option, you’ll want to keep reading to learn how these can help support your loved one, if they can be revocable, and why it’s in your best interest to work with Tampa special needs planning lawyers to ensure this process goes as smoothly as possible.
What Is a Special Needs Trust?
A special needs trust is a kind of trust fund that can help support a loved one with special needs. When your loved one is on government assistance programs, they must qualify. If you gift them money or leave them a considerable amount of assets in your will, it can put them over the threshold to qualify for these programs. As such, it’s important to understand how strategic planning can help ensure your loved one gets the support and benefits they need while receiving additional financial support from you.
Creating a special needs trust allows you to provide additional funds for your loved one to help pay for hobbies, educational courses, or living expenses without jeopardizing their supplemental security income, SNAP benefits, or housing assistance. This is because a trust fund is not held in the name of the beneficiary. It’s important to work with an attorney when creating a special needs trust to ensure you these are not considered cash gifts.
Can This Be Revocable?
It’s a common misconception that special needs trusts can only be established by another person for someone with additional needs. However, this is not true. In reality, there are two ways a special needs trust can be created.
Most commonly, a third-party special needs trust is established. Essentially, this happens when someone else creates the fund and names the person with additional needs as the beneficiary. Creating a trust fund on behalf of another person allows you to make the trust either revocable or non-revocable.
However, it’s possible to create a first-person special needs trust, which occurs when the person with additional needs establishes the trust fund to qualify for government benefits. This is often the case for those who sustain injuries or illnesses that leave them with disabilities. Creating a first-person special needs trust can only be irrevocable.
As you can see, creating a trust fund for your loved one can be an incredibly complicated process. That’s why it’s in your best interest to connect with an experienced attorney who can help guide you through these times. At the Tampa Law Group, we understand how important it is for you to provide for your loved ones, so we will do everything in our power to assist you through this process. Connect with us today to learn how we can guide you during these times.
