Answers To Your Special Needs Trust Questions
Parents of children with special needs understand that many aspects of life can be more challenging than initially expected. When it comes to establishing a special needs trust for your child, there are some complications and some important considerations to look at, but in general, it is not impossible. With the help of an experienced legal team on your side, you can establish a special needs trust that will meet your needs.
At Coffin, Coffin & Blackman, we handle special needs trusts regularly. For more than a decade, we have been helping clients establish these legal instruments throughout central Indiana. In that time, we have fielded many questions. Please peruse the questions below and reach out to us to discuss how we can help you.
What is a special needs trust?
A special needs trust is a legal instrument implemented to protect and preserve the assets of disabled people and to allow such individuals to remain qualified for Medicaid, Supplement Security Income and other government entitlement programs.
What are the types of special needs trusts?
There are two types of special needs trusts: The third-party special needs trust and the self-settled special needs trust.
What is the difference?
The third-party special needs trust is the more common form that most people know. It involves one person leaving assets in a trust for someone else who has special needs. So, if a parent creates a trust to provide for a special needs child after they have passed, that would be considered a third-party special needs trust.
A self-settled special needs trust is when the benefits a special needs person is already receiving could jeopardize their eligibility for other needed benefits. Putting assets from one of the benefits into a trust can protect their eligibility for other benefits.
Can I create a special needs trust on my own without a lawyer?
While, technically, yes you can, it is not advisable. An experienced attorney is invaluable to helping you understand the various options available to you, helping you avoid legal pitfalls and problems, and creating a special needs trust that will be effective.