San Jose Special Needs Planning Attorneys
Finding Ways To Financially Protect Your Disabled Loved Ones
If you have a child or other family member with disabilities, you might worry about how they’ll pay for their necessities when you’re no longer here to care for them. Fortunately, you can plan ahead for their future by sitting down with a skilled attorney to learn what special needs planning tools are available.
At Trust Law Legacy Group, APC, we regularly help families determine which elements of estate plans would be right for them and their loved ones, and we can do the same for you. Contact us today if you’re ready to discuss how to provide for your special needs child when creating your estate plan.
What Is Special Needs Planning?
Special needs planning is a type of estate planning specifically designed to help you provide for loved ones who have disabilities. The goal of this type of estate planning is to ensure that disabled individuals can continue to receive the care and support they need throughout their lives without jeopardizing their eligibility for government benefits.
After all, most government programs that disabled individuals rely on, such as Medi-Cal and Supplemental Security Income (SSI), have strict income guidelines. This means if your child suddenly inherits a significant amount of money from your estate, they could be over the income limit and therefore ineligible for the benefits they need for healthcare and more. Special needs planning aims to prevent this from happening, ensuring you can leave your child money while allowing them to remain eligible for government programs.
The most popular special needs estate planning option is the creation of a special needs trust, which our experienced lawyers can help you with. We can also help you set up powers of attorney, guardianships, and other estate planning tools while ensuring you’re aware of the public assistance programs your child is eligible for. Contact our San Jose law firm today to learn more.
What Are the Types of Special Needs Trusts in California?
A special needs trust is a legal entity that holds assets for the benefit of an individual with special needs. Since the trust is legally considered the owner of the assets within it, you can pass on your assets to your children without putting them over the income limit for public benefits. As a result, the trust assets won’t show up when the government tries to determine eligibility for certain programs.
Once the trust is set up, it’s managed by a trustee. This person is responsible for using the trust assets to provide for the individual’s needs in a way that doesn’t interfere with their eligibility for the programs they need. The main types of special needs trusts you can choose from include:
- Third-party trust: This kind of trust is funded by someone other than the beneficiary, such as their parents, siblings, or grandparents. It’s the most common type of special needs trust for families to use.
- First-party trust: This is funded by the beneficiary, usually with money from an inheritance or legal settlement. The downside of this trust is that when the disabled individual passes away, any money left in the trust will be sent to the government to reimburse them for public benefits.
The type of trust you choose will typically depend on the source of the funds, though there may be other details to consider. If you want to learn more before making a decision – such as the difference between trusts included as part of a larger estate plan or stand-alone trusts funded by family – contact our law firm today for advice.
How Can Your Loved One Use the Money in Their California Special Needs Trust?
One of the questions clients often have about special needs trusts involves how their children can spend the money in them. The good news is that they can spend it on a wide range of expenses related to their care throughout their lifetime. This can include medical expenses, housing, education, and just about anything else they need to improve their quality of life. Some specific examples of such expenses include:
- Use of public transportation
- Buying and maintaining a car
- Tutoring and other educational needs
- Buying or remodeling a house
- Hobbies or athletic activities
- Electronics and furniture
- Concerts, movies, sporting events, and other entertainment
- Vacations
- Unique dietary needs
- Any medical costs not covered by the government
- Personal care attendants
In short, by using a special needs trust, you can ensure your family member will receive the care and support they need while still qualifying for government benefits. If you have further questions about how the funds in the trust can be spent, call our law office for answers from a compassionate legal team that understands the importance of planning for your loved one’s future.
Why Should You Hire San Jose Special Needs Planning Attorneys?
Overall, special needs planning is a critical component of estate planning for families with individuals who have disabilities or other special needs. It requires careful consideration of the unique situation and goals of the individual and their family. For this reason, it may involve working with a team of professionals, including attorneys, social workers, and financial advisors, to make sure that all legal and financial requirements are met.
The team at Trust Law Legacy Group, APC is prepared to guide you through the complex process of creating a personalized estate plan that takes into account the future of your disabled loved ones. We realize your family member’s disability will significantly affect what kinds of trusts and other legal tools your plan should contain, as they’ll need continued access to government benefits for life.
If you have questions about trust administration, estate planning, special needs trusts, and other legal strategies available to you and your family members, we’re eager to provide you with accurate answers that will give you peace of mind. Call us at 669-201-4368 to get the legal resources you need from experienced lawyers who genuinely care about your case.