Why a special needs trust?
Unfortunately, without proper estate planning advice, family members with special needs can be left without the proper care due to government benefit limits and income requirements. Inheritances, settlements, and monetary gifts can cancel out government benefits, leaving your loved one on their own to handle not only their care, but also their finances. A special needs or supplemental needs trust allows parents and caregivers to set aside money to be used for the future care of their loved one while still protecting their eligibility for government benefits, including Medicaid and Supplemental Security Income. There are many options available for ensuring the financial stability and long-term care of a loved one with special needs and we provide one-on-one counsel to address your specific situation and long term needs.
Due to complex and changing regulations, professional estate planning help is critical when preparing for the future of a loved one with special needs.
Types of Special Needs Planning Tools
Self- Settled Trust
Self-settled or First-party special needs trust is funded with assets owned by the Beneficiary, or to which the Beneficiary is already legally entitled. Assets could come from litigation proceeds, inheritance, gifts, divorce settlements, child support, etc. There are special conditions clients should understand before establishing a self-settled trust.
To find out more, contact KMC Law of MD.
Pooled Trust
A non-profit organization establishes and administers a pooled trust. Each beneficiary has a a separate account within the trust. The assets of each account are then pooled for investment and management purposes. Both self-settled and third-party trusts can use pooled trusts; however there are special provisions for each.
To find out more, contact KMC Law of MD.
Third-Party Trust
A Third-party special needs trust is set up for the Beneficiary using assets from parents, grandparents, or friends. The Beneficiary neither owns nor can demand distribution of assets from the trust.
There are special conditions clients should understand before establishing a third-party trust.
To find out more, contact KMC Law of MD.
ABLE Account
Achieving Better Life Experience or ABLE accounts are tax-advantaged savings accounts for individuals with disabilities and their families to build savings to pay for qualified disability expenses. There are restrictions on who is eligible and contribution limits.
To find out more, contact KMC Law of MD.