Helping Special Needs Families Get the Information and Resources They Need! Member Sign In or Become a Member.

Third Party Special Needs Trusts

[clear]

[big-title] Special Needs Trust: Bootcamp![/big-title]
[navtab]
[tab title="What is a Trust" state="active"]
[two-third last="false"]

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]
[/two-third]
[one-third last="true"]

[/one-third] [/tab] [tab title="Types"] [two-third last="false"]

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="3rd Party SNT"] [two-third last="false"]

What is a 3rd Party Special Needs Trust?

[p]It is an irrevocable trust that is created in a will or in a separate 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 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. Also, the Trustee is accountable to the beneficiary so that it offers formal, legal protection for the special needs person. [/p] [/two-third] [one-third last="true"] [/one-third] [/tab] [tab title="What Can It Pay For"] [two-third last="false"]

What can a Special Needs Trust be used for?

[p]Assets in the 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"]
[/one-third] [/tab] [tab title="Real Life Example"] [two-third last="false"]

Lets look at a typical situation.

[p]Here is a typical situation where there are two parents with three children and one of the children is special needs. [/p] [/two-third] [one-third last="true"]
[/one-third]
[/tab][tab title="Important Points"]
[two-third last="false"]

Who can create and how to fund the Special Needs Trust?

[p]Learn important points in the video and you may need a special needs trust in the following situations:[/p]
[one-half last=false]
[list-ul type="arrow"]
[li-row]Do you want to leave the individual an inheritance but he or she is receiving government benefits? [/li-row]
[li-row]Has the individual been injured and become disabled but will receive a settlement?[/li-row]
[/list-ul]
[/one-half]
[one-half last=true]
[list-ul type="arrow"]
[li-row]Is the individual receiving government benefits and just received a surprised inheritance? [/li-row]
[/list-ul]
[/one-half]
[/two-third]
[one-third last="true"]
[one-third last="true"]


[/one-third]
[/tab]
[tab title="Steps to take"]
[two-third last="false"]

Steps to take if you need a Special Needs Trust?

[p]If you have determined that a special needs trust is needed for your situation, follow the points below:[/p]
[one-half last=false]
[list-ul type="arrow"]
[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]
[/list-ul]
[/one-half]
[one-half last=true]
[list-ul type="arrow"]
[li-row]Review your entire estate plan and how it will include the special needs trust[/li-row]
[li-row]Tell others involved in the individuals life of the existence of the special needs trust in case they want to give [/li-row]
[li-row]Make sure that any assets left to the special needs individual is left directly to the special needs trust[/li-row]
[/list-ul]
[/one-half]
[/two-third]
[one-third last="true"]

[/one-third]
[/tab]
[/navtab]

[clear]

[line]

[clear]

[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]