Many people care about what happens to their property and assets after death, but interestingly, a trust may be what affects them the most during their lifetime. Trusts play a crucial role in estate planning by providing numerous benefits and flexibility that can help individuals effectively manage their assets and distribute them according to their wishes. Many haven’t heard of a special needs trust, but learning about what it does may save you and your family from difficulty in the event of a tragedy.
A special needs trust (SNT) is an important legal tool for making sure your loved one’s health care and living needs are taken care of in the event that you predecease them or are prevented from financially supporting them for some other reason. That reason may include mental incapability or the trustee becoming a disabled person. An additional, and very important, benefit of a Michigan special needs trust is that the funds placed in that trust will not disqualify the recipient from receiving government benefits.
So, in other words, giving more consideration to the beneficiary of the trust in case of an unexpected situation. These unexpected issues may cause the trustee to want to arranging the trust assets differently.
Galloway and Collens, PLLC, is a leading estate planning law firm that is ready to set up and administer the right kind of trust to take care of your family member’s special needs. Attorney Howard H. Collens has many years of experience handling all trust-related matters throughout Royal Oak and Michigan, including:
Call us at 248-545-2500 to learn how we can help you. We serve clients throughout the Detroit metro area.
When it comes to safeguarding the future of a loved one with special needs, a Special Needs Trust (SNT) can be a lifesaver. They offer a multitude of benefits that can provide a more secure and comfortable life for your loved one.
The beauty of a Special Needs Trust is that it allows the beneficiary to retain their access to vital public benefits such as Medicaid and Supplemental Security Income (SSI). Without an SNT, receiving an inheritance or other financial windfalls could disqualify your loved one from these programs. But with an SNT, the assets are held in the trust, and don’t count toward their personal assets.
Here’s where it gets personal. An SNT isn’t just about keeping benefits safe. It’s about enhancing the quality of life for your loved one with special needs. The trust can pay for expenses not covered by public benefits, such as specialized equipment, home modifications, or even trips to see family. It provides the financial freedom to explore and enjoy life outside of what’s covered by government programs.
No one wants their loved one’s future to get bogged down in legal wrangling. Setting up an SNT ensures that the assets in the trust are exempt from probate, the legal process of distributing a deceased person’s assets. This not only speeds up the process of providing support to your loved one, but it also ensures their financial matters stay private and away from court scrutiny.
Finding the right way to provide for the needs of an adult, child or grandchild with special needs is a challenge for anyone engaging in estate planning or establishing a family trust.
How do you take care of a person who has the additional expenses associated with a special mental or physical need, without affecting the beneficiary’s qualifications for government or public benefits, such as Social Security/ SSI and Medicaid?
An irrevocable stand-alone SNT provides for the beneficiary, without disqualifying him or her from government assistance.
Our law firm is ready to help. Contact the real estate and estate planning attorneys at Galloway and Collens, PLLC.