Caring for a child or adult with special needs can invoke many complicated legal questions. Especially when these people reach adulthood, the law provides specific provisions for their continued care. In many situations, parents retain control over the lives of their adult children through guardianships. In others, they may cooperate with the state to ensure their loved one’s wellbeing.
A person who has guardianship over another needs to consider what may happen if they become unable to provide this care in the future, such as in the event of an accident or a premature death. In these cases, it may be beneficial to create a trust that will provide financial assistance to a person with special needs upon a caretaker’s death.
A skilled attorney could explain how forming a special needs trust in Manalapan Township could provide this support. These legal documents can go into effect at any time and can allow for the transfer of property in a way that does not impact a person’s eligibility for government benefits.
Creating a Special Needs Trust
Individuals with special needs require additional care, and in many cases, a parent will take direct control over this process. However, situations can arise where a parent or other guardian is unable to continue to provide this care, and an adult with special needs may be left on their own.
This is an untenable situation, but it can be prevented if a guardian transfers property to an individual with special needs through a trust. This would allow a person with special needs to have property or cash to cover their needs and expenses while a trustee ensures that the funds serve their intended purpose.
New Jersey Revised Statute § 3B:31-19 outlines the requirements for creating a trust. In short, parties must have the intent to create a trust, nominate a definite beneficiary, and nominate a trustee to oversee the distribution of funds. An attorney in Manalapan Township could provide more information about the legal steps involved in creating a trust and how they could secure the future of people with special needs.
Providing Assets without Impacting Eligibility for Benefits
A combination of state and federal laws provides financial assistance to people with special needs, such as Supplemental Security Income, Medicaid, and Medicare. However, in most situations, these benefits are only available to people who own little to no assets.
A special needs trust can keep individuals eligible for these vital programs while still allowing them access to essential funds. All assets and cash present in a trust are the property of that trust, and that property can be distributed to the beneficiary at specified times. In this way, a special needs trust can still benefit a person with special needs while not providing them with legal control over assets. A Manalapan Township lawyer could further explain how a special needs trust could help a person qualify for government benefits.
A Manalapan Township Attorney Can Help You Establish a Special Needs Trust
People with special needs have several opportunities within the legal process to protect their present and future, and one of the best ways to accomplish this is for a parent or other concerned person to place property in a trust. As property held in a trust is neither taxable nor subject to valuation when considering an individual’s eligibility for government programs, it will not impact their benefits. Reach out to a Manalapan Township attorney today to learn more about special needs trusts.