Special Needs Trust Attorneys in Port Orchard Helps You Protect Disabled Family Members
Washington State estate planning lawyers assist with provisions for future care
If you have a family member who lives with disabilities, you are naturally concerned with how they will be provided for once you are no longer able to take care of them. Setting up a special needs trust can help safeguard their future. At GSJones Law Group, P.S., we can assist you with establishing a trust as part of your estate planning and making sure it is properly constructed so that you can rest easier knowing your loved ones will have the financial security they need. Based in Port Orchard, Washington, we serve clients throughout Kitsap County and surrounding areas.
What is a special needs trust?
A special needs trust is a legal tool that allows individuals with physical or intellectual disabilities to receive financial support over their lifetimes. These trusts also preserve the beneficiary’s eligibility for benefits from Supplemental Security Income (SSI) and Medicaid, while the supplemental trust income contributes to their quality of life. An attorney from our wills and probate practice can explain how to set up a trust that is suited to the particular individual’s needs.
Who can benefit from a special needs trust?
Perhaps you are a parent or grandparent with a special needs child or grandchild, or you have a sibling with disabilities and want to ensure they are financially taken care of after your death. A special needs trust provides the ability to plan long-term financial support without jeopardizing the beneficiary’s eligibility for government programs. We can advise you about the different types of special needs trusts and which type is most advantageous for your family’s specific circumstances.
Types of special needs trusts
These are the three essential types of special needs trusts:
- First-party trust — The beneficiary’s own assets, often from an inheritance or personal injury settlement, are used to fund the trust. Any Medicaid benefits paid during the term of the trust must be reimbursed upon the death of the beneficiary.
- Third-party trust — Someone other than the beneficiary, such as a parent or grandparent, funds the trust. The trust’s creator decides how to distribute remaining assets after the beneficiary dies. There is no requirement to pay back Medicaid.
- Pooled trust — This type of trust combines assets for multiple beneficiaries and is managed by a nonprofit organization. There are advantages in terms of affordability, especially for smaller estates, as well as professional management. Disadvantages can include a lack of control over distributions and what happens to assets after the beneficiary dies.
We will help you understand the legal and personal considerations involved in choosing the type of special needs trust best suited for your goals.
How a special needs trust works in practice
Trusts are administered by trustees who manage disbursements to support the needs of beneficiaries. Assets from special needs trusts can be used to pay for such things as transportation, personal care attendants, recreation, education and employment training. Disbursements cannot be used for basic support like food or housing without affecting eligibility for government benefits.
A trustee can be a relative, a trusted friend, a professional such as a lawyer or accountant or an organization. A trustee should have knowledge of public benefit programs, be organized and responsible, be financially savvy and have the time necessary to take on the responsibilities involved. We can help you decide on who may be the best choice to manage a trust for your loved one.
Contact a responsive Kitsap County attorney to learn more about special needs trusts
The estate planning lawyers at GSJones Law Group, P.S. in Port Orchard assists Washington State clients with setting up special needs trusts for disabled family members. Please call our firm at 360-876-9221 or contact us online to arrange a time to speak with an attorney.
