Special Needs Trust Attorneys Providing Guidance to Families in the Farmington Area
What is a special needs trust? What type of special needs trust is best for my family? If you live in the area of Farmington, Utah, and have a special needs child, it’s never too early to begin the process of planning for your child’s future financial wellbeing.
A pooled trust is one type of trust available to benefit a special needs individual. There are different types of pooled trusts with different stipulations for fund allocation and trustees that are deemed eligible. A qualified special needs Utah estate planning attorney will discuss the ins and outs of utilizing a pooled trust. At Amicus Law Firm, we’re committed to our transparency of operations and strive to ensure you understand every complex nuance of special needs law.
The goal of a pooled trust is to provide resources for special needs individuals that do not have the financial opportunities to set up a first- or third-party trust. Pooled trusts are managed by non-profit organizations who facilitate the combination of assets from multiple donors. Trust funds placed in a pooled trust are used as a supplement to government benefits and can be very helpful for many special needs people.
A first-party trust is established by a special needs person and is funded with their income and assets. First-party trusts are mostly used by individuals who were born without a disability but developed a mental or physical ailment later in life. This is because these individuals have had an opportunity to work and earn their income and savings. Some people that were born with special needs are not mentally or physically fit enough to earn a living, which makes a first-party trust difficult to set up. This type of trust enables the trustor to put their income and assets into an estate plan without ruining their eligibility to get needs-based government assistance in the future, like SSI (Supplemental Security Income) or Medicaid. The beneficiary of the trust is allowed to use the funds they’ve accumulated in any way necessary. This includes medical expenses, nursing home or long-term care fees, living expenses such as rent, and more.
A common trust utilized by families with special needs children is third-party trust. Third-party trust mostly benefits someone with special needs who is unable to earn income on their own throughout their lifetime. In the case of a third-party trust, a parent or legally appointed guardian (or conservator) is the donor. This is the person who contributes their money to the trust. These assets can include housing or other real estate property, income, and other valuable assets such as cars, jewelry or stocks, and mutual funds.
Have You Thought of Everything?
An appointed special needs planning attorney will help iron out the details of the trust and decide what kind of recurring payment schedule benefits the trustee best. In the state of Utah, there is no limit to how much money you can place into a special needs trust fund. A third-party trust is a component of a donor’s estate plan, which means when the donor passes away, the money will be allocated to the trustee as the donors intended.
When the donor creates a third-party trust, they designate how much money the trustee will receive and on what kind of schedule. For example, the donor may elect that a trustee will receive several hundred dollars once a month to cover living expenses for that month. Different special needs trustees will require different amounts of money, so it’s helpful to seek legal counsel to create the most beneficial care plan possible. Once the trust funds have been allocated to the trustee, the trustee may use the funds in any way they see fit. Third-party trust funds are typically used to cover day-to-day expenses as well as the cost of long-term care.
How Can a Special Needs Trust Attorney Help?
A special needs planning attorney will ensure that your third-party trust opportunities do not affect your loved one’s ability to receive Medicaid. If you are concerned about setting aside money for your special needs child and want to be sure the opportunity exists or receive government-issued funding in the future, speak with qualified legal counsel to cover all your bases. The Amicus Law Firm can even help with your Medicaid application to help protect the financial best interests of your special needs child or loved one. Amicus Law Firm attorneys are accustomed to the nuances dictated by Utah state, and they are proud to serve the Farmington, Utah region in accordance with state and federal special needs legislation.
You and your loved ones deserve the peace of mind and the promise of a stable future. Amicus Law Firm is dedicated to providing Farmington, Utah families with knowledgeable legal counsel regarding special needs trusts and estate planning.
Contact us today for a no-obligation consultation of your loved one’s financial planning opportunities. We can help decide if a first-party, second-party, or pooled trust is best for your child or relative. We are honest, compassionate attorneys who understand the estate planning process can be intimidating. We’ll stop at nothing to educate you on your options.
We are proud to provide honesty, integrity, and the utmost standard of client service to every client we work with. Reach out and let us help. Call us at 801-544-6466.