7 Common Questions About Special Needs Trusts

special needs trusts

Are you wondering which questions you should ask about special needs trusts? Knowing what to ask will protect your Medicaid.

Special needs trust planning is quite challenging. So, you need a good special needs trust attorney to guide you through the process. A good lawyer will also help create the best special needs trust.

There are several reasons to consider special needs trusts. However, not asking the right questions may be a barrier to enjoying these benefits.

Would you love to know the questions you should ask about special needs trusts? Keep reading to learn about the seven common questions about these types of trusts.

1. What Is a Special Needs Trust?

The first step for a successful special needs trust planning is answering this question. Other people refer to it as supplemental needs trusts. Special needs trust helps disabled and sick people.

Basically, it is a kind of estate planning. It enables such people to get financial help without affecting their government benefits. If your loved one has a disability, consider this type of trust for their financial security.

In the U.S, the public benefits have income/assets limitations. So, special needs trusts ensure that nothing gets compromised.

Knowing what special needs trusts are will help you know their benefits. One benefit is that you’ll plan how to cut the financial burden on your family. Through these trusts, the money given will cover the expenses not covered by the government’s help.

2. What Are Types of Special Needs Trusts?

This is another important question when planning this type of financial security. Before special needs trust planning, you need to have a clear mind. Besides getting a suitable trust for your loved one, you will also save some cash.

There are types of special needs trusts you should know. You should also know the characteristics of each trust before making up your mind. Know who provides them, their advantages, and the disadvantages.

Before choosing a special needs trust, know whether you or another person will fund it. The beneficiary doesn’t necessarily fund some special needs trusts. This will help you avoid mistakes while planning for this trust.

Again, you should know whether the special needs trust you’re choosing is revocable or not. Be clear on what you want first!

3. How Can I Use the Special Needs Trust Money

Special needs trust finances are not for wasting. The key aim of getting the money should enhance your financial security. With the rising cost of living, the government assistance programs may not cater for all your expenses.

Special needs trusts are there to cover extra expenses not covered by the government. Always ensure that you use the money to enhance your life quality.

The first expense that the money should cater for is the unreimbursed treatment costs. These are extra treatment costs that health insurance or Medicaid doesn’t cover. This is necessary to minimize the financial burdens to the affected people and their families.

You can also use the cash for your recreation. Whether disabled or sick, nothing should limit you from enjoying life. Having fun is a way of keeping stress, depression, and anxiety away. Fund your entertainment using special needs trust money.

4. Should I Hire a Special Needs Lawyer?

Getting special need trust money can need legal help. There has to be a legal expert to guide you through the process. Lack of a good special needs trust lawyer can jeopardize everything.

A special needs trust attorney will help you qualify for Medicaid. Again, a good attorney can help you in special needs trust planning. Hire a professional legal expert and save yourself the complex procedures.

You may not know how to spend the money you get at times. Special needs attorneys also help their clients spend the money properly.

Not all special needs attorneys you come across can be of help. Take time and do a thorough search first. Ensure that the attorney you hire is specialized in special needs trusts.

Consult your close friends and family about the best special needs trust lawyer. If you find one, check his/her online reviews and the work track record.

5. How Do I Set Up Special Needs Trust?

This is the toughest question you can have to answer. Planning for special needs trust may be challenging if you don’t have the right tips.

First, you should think about your loved ones. Your wishes for them will help you set up the special needs trust. This will ensure that each person gets the money you desire.

The other thing to do is to choose good trustees. These are people that will help you distribute the money to your loved one. Choose somebody that is close to you.

After this, you can set up your trust and finance it.

6. Where Can I Find the Special Needs Trust Money?

There are different ways to fund a special needs trust.  A trust could be funded with inheritance from a family member, or sometimes from the proceeds of a personal injury settlement.  One other popular way to fund a special needs trust for parents with children with special needs is through a life insurance policy.  Often a second to die policy will work well for a married couple because it offers lower premiums and provides the benefit when the second spouse dies.

7. When Should I Create Special Needs Trust?

Life is unpredictable. Always create your special needs trust early enough. If you have a disabled or autistic child, create a trust when the child is young.

Creating trust early enough will give you peace of mind to know that your child will have the financial resource he or she needs if something happens to you.

These Are Questions About Special Needs Trusts

Special needs trusts are essential for giving people with special needs the ability to qualify for important government while having a safety net in the form of the trust. Many people don’t know the right questions about special needs trusts.

Knowing these questions is essential for creating this type of trust.

Do you want help in special needs trust planning? At Smith Barid, LLC, we specialize in estate planning, special needs, elder law, and business planning.

Contact us today for your needs.

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