Special Needs Trusts Attorney in Rocklin, California
Caring for a loved one with special needs can be one of the most challenging yet rewarding experiences in life. As years go by and you keep getting older, you might catch yourself thinking, “How do I make sure my loved one with special needs is cared for after I’m gone?” more often. Fortunately, there is a solution. And that solution is establishing a special needs trust.
At Law Office of Geoffrey Fong, the special needs trusts attorney in Rocklin, California, understands the unique concerns of those who care for someone who has limitations preventing them from living their lives independently and to the fullest. The attorney provides families whose loved ones have a disability with the undivided attention and care they deserve as he helps them plan for the future.
What Is a Special Needs Trust?
A special needs trust (SNT) is a legal arrangement and fiduciary relationship that covers the financial needs of a person with a disability without compromising their eligibility for government disability programs. These trusts are crucial for managing and protecting assets for individuals with disabilities, ensuring their long-term care and financial needs are met.
Reasons to Create a Special Needs Trust
Everyone has their own reasons for creating this type of trust. In most cases, the protection of children with special needs is at the heart of a special needs trust. Below are some of the most notable benefits of an SNT:
Preserve government benefits: Ensure that your loved one remains eligible for Medicaid, SSI, and other essential public assistance programs.
Legal protection: Protect the assets meant for the care of your loved one from creditors and potential misuse.
Tailored care: Provide funds for supplemental needs such as education, entertainment, and medical care not covered by government benefits.
Flexibility and control: Designate a trustee to manage the trust and make decisions in the best interest of the beneficiary.
Peace of mind: Know that your loved one's financial security is ensured even after you're no longer able to care for them.
Everyone’s circumstances are unique, which is why you may not realize how important it is to set up a special needs trust in your situation before you speak with an attorney. The Rocklin special needs trusts attorney at Law Office of Geoffrey Fong can review your particular circumstances and explain how you could benefit from establishing a trust and how to tailor it to your loved one’s needs.
First-Party vs. Third-Party Special Needs Trusts
In terms of funding a special needs trust with assets, there are two types of trusts:
First-party trust: Funded with assets belonging to the individual with special needs, often created when they receive an inheritance or settlement.
Third-party trust: Funded with assets from family members or other third parties, often set up as part of estate planning.
Regardless of its type, a special needs trust must be properly established to protect the loved one’s right to their intended benefits.
When Do the Benefits of a Special Needs Trust End?
The benefits of a special needs trust typically end upon the beneficiary's death or when the trust funds are depleted. At the beneficiary's passing, the remaining assets may be used to repay Medicaid for any services provided or distributed to other beneficiaries as specified by the trust. You might want to consult with an attorney to structure the trust in a way that aligns with your family’s unique circumstances and wishes.
Is a Special Needs Trust a Revocable Trust?
A special needs trust is generally an irrevocable trust, meaning once it is set up, it cannot be easily altered or revoked. This is a key distinction because it ensures the trust's assets are not considered available resources when determining eligibility for government benefits. However, specific conditions and exceptions might apply, which is why legal counsel is essential when establishing this type of trust.
What Does a Special Needs Trust Contain?
A well-constructed special needs trust will typically include:
Detailed beneficiary information: Clearly identifying the individual with special needs to avoid confusion.
Trustee provisions: Appointing a reliable trustee to manage the trust’s assets and distributions.
Distribution guidelines: Defining how funds can be used to improve the beneficiary’s quality of life without affecting eligibility for public benefits.
Remainder provisions: Indicating what happens to any remaining assets upon the beneficiary’s death.
Each of these components ensures that the trust serves its intended purpose effectively. A competent special needs trusts attorney will guide you through these elements, tailoring the trust to meet your family’s needs.
Do Special Needs Trusts Impact Government Benefit Eligibility?
No, a properly established special needs trust does not affect eligibility for government benefits like Medicaid and SSI. The trust assets are not counted as part of the beneficiary's personal funds and are managed separately by the trustee.
How a Special Needs Trusts Attorney Can Help
Regardless of whether your loved one has a physical or mental disability, you could benefit from seeking legal counsel when establishing a special needs trust. The California special needs trusts attorney at Law Office of Geoffrey Fong provides clients with an array of services, including:
Establishing special needs trusts customized to their specific circumstances;
Integrating a special needs planning into the overall estate plan;
Addressing concerns regarding eligibility for government benefits, including Supplemental Security Income (SSI) and Medi-Cal;
Helping arrange housing and find means to finance it; and
Outlining rules by which the trustee will manage assets for the benefit of the person with special needs.
Law Office of Geoffrey Fong has earned a reputation for providing personal attention to clients and helping clients find solutions that bring peace of mind.