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Payback Special Needs Trust- Bootcamp!

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[big-title] Payback Special Needs Trust: Bootcamp![/big-title]
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What is a Trust?

[p]A trust is a legal agreement between the settlor (Trustor or Grantor) or person setting up the Trust and the Trustee or person who administers the Trust to achieve a certain objective. The agreement is spelled out in a trust document and makes clear what can and cannot be done by the Trustee and with the Trust assets. The person who benefits from the Trust is called the beneficiary. [/p]
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3 types of Special Needs Trusts

[p]There are three types of special needs trusts. Which one you will choose depends on your situation. They are:[/p] [one-half last=false] [list-ul type="arrow"] [li-row]Third Party or Common Law Special Needs Trust [/li-row] [li-row]Payback Special Needs Trust or Self-Settled Special Needs Tusts[/li-row][/list-ul] [/one-half] [one-half last=true] [list-ul type="arrow"] [li-row]Pooled or OBRA Special Needs Trust[/li-row] [/list-ul] [/one-half] [/two-third] [one-third last="true"] [/one-third] [/tab] [tab title="Payback SNT"] [two-third last="false"]

What is a Payback Special Needs Trust?

[p]It is an irrevocable trust that is created in a trust document. The trust document is usually 6-9 pages long and spells out exactly what the trust can and cannot do. The language of the Payback SNT states exactly that the Trust will only be used to supplement and not supplant government benefits available to the special needs person. The disabled family member can therefore continue receiving governmental benefits (Supplemental Security Income, Medicaid, and other services) even though assets placed in the trust are over the eligibility limits. However, when the special needs beneficiary passes away, the assets left in the trust go to the government to payback what the government has spent for that individual. Therefore, there may be nothing left in the trust after the government is paid back.[/p] [/two-third] [one-third last="true"]
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What can a Payback Special Needs Trust be used for?

[p]Assets in the Payback Special Needs Trust (similar to the 3rd Party Special Needs Trust and Pooled Special Needs Trust) should be used to assist in the treatment of the beneficiary and increase his or her quality of life. It is the Trustee's duty to understand what services the SNT can pay for and what services could cause the beneficiary to become ineligible for governmental benefits. The Trustee should consult with an attorney in his or her state because Federal and State law and case law come together to create the governing regulations. Some states permit the following: medical expenses, nursing and custodial care, psychiatric/psychological services, recreational therapy, occupational therapy, physical therapy, vocational therapy, durable medical needs, prosthetic devises, special rehabilitative services or equipment, programs of training, education, transportation (including the purchase of an accessible/adapted vehicle), and travel expenses, telephone equipment, cable television and internet access as directly related to the disability, dietary needs and supplements, insurance, professional expenses, architectural modifications to permit access to a residence, and the purchase in the name of the SNT of appropriate housing together with costs of repair and maintenance.[/p] [/two-third] [one-third last="true"]
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Lets look at a typical situation.

[p]Here is a typical situation where a payback special needs is needed. Watch to the end of the video. [/p] [/two-third] [one-third last="true"]

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Important points about a Payback Special Needs Trust

[p]It is likely that a Payback Special Needs Trust will not be needed but remember:[/p]
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[li-row]Usually only a parent, guardian or the Court can set up a Payback Special Needs Trust [/li-row]
[li-row]Has the individual been injured and become disabled but will receive a settlement? Work with the attorney handling the litigation to plan for future government benefits[/li-row]
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[li-row]Is the individual receiving government benefits and just received a surprised inheritance? Notify an attorney right away and work with you local social security office.[/li-row]
[li-row]Again, never intermingle funds from a third party special needs trust and a payback special needs trust.[/li-row][/list-ul]
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Steps to take if you need a Payback Special Needs Trust?

[p]If you have determined that a payback special needs trust is needed for your situation, follow the points below:[/p]
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[li-row]Determine the government benefits the individual is or may be receiving in the future [/li-row]
[li-row]Write down assets of the individual who requires the special needs trust [/li-row]
[li-row]Contact an experienced attorney in your area with that info & ask about their fee [/li-row]
[li-row]Consider spending down assets if the special needs individual's newly acquired assets are not that much- talk to an attorney though[/li-row][/list-ul]
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[li-row]Act quickly, as it may be possible for the individual with disabilities not to lose their benefits at all and their money will go straight to the Payback Special Needs Trust[/li-row]
[li-row]Make sure the individual with disabilities assets NEVER go into a 3rd Party Special Needs trust but only into the Payback Special Needs Trust [/li-row]
[li-row]Setting up a Payback Special Needs Trust can take a long time so be patient[/li-row]
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[big-title2]Kokua Network goes to great lengths to provide accurate information. Kokua Network is not rendering legal, tax, accounting or other professional advice or services and you should talk to a attorney, accountant or any other professional local to your area who is knowledgeable of the rules and regulations that apply in your unique situation. Kokua Network should be used as a general guide only.[/big-title2]