Special Needs Trust Attorneys – An InfoPosted by: Kim Sears | Posted on: December 15, 2020
One way to give for your future child’s future is through a Special Needs Trust (SCT). Through a Special Needs Trust, you can set up and invest for your dependent’s future benefit so that if they become disabled, they receive the disability benefits and other assistance that they would otherwise not be able to receive. In most states, once a dependent reaches the age of eighteen, they must be provided with at least one year of Medicaid and most state provides SSSIs as well. By definition, a Special Needs Trust is created when a dependent creates a written trust document naming them as beneficiaries. The trust is typically created by their parents or legal guardians.You may want to check out Amicus Law Firm-Special Needs Trust Attorney for more.
The advantage of a Special Needs Trust is that it provides tax advantages and there are no probate costs. In addition, there is usually a lot less paperwork involved when it comes to setting up the trust than is required when creating an estate plan. Most people who set up a SCT trust also create a Special Needs Trust IRA in which they deposit the money into. A Special Needs Trust IRA may be funded by a combination of income, savings, and business income; however, most individuals will choose to deposit the money into a traditional IRA.
Choosing a Special Needs Trust requires careful planning and knowledge of the rules regarding Social Security and Medicare. You will need to find an experienced special needs trust attorney to handle your case, preferably one who is not connected to any particular firm, because you will need to have access to this person throughout the process, should you ever need to file a lawsuit against your trustee. To protect your interests, your Special Needs Trust should include a Beneficial Owner (BOW) who is the person who is legally designated as the owner of the assets on which the trust is based. Your Special Needs Trust should also include a Special Needs Trustee. Your Special Needs Trust should also include a trustee who is also familiar with your situation and who is willing to work with you, along with your attorney, to create a plan that takes care of your unique circumstances.