A trust functions as a way to transfer assets from one party to another. However, the law also allows these documents to serve as a way to care for the long-term needs of others. This is especially true when these people are children or are suffering from a mental or physical condition that limits their ability to provide for their own needs. For years, trusts have been a tool that people have used to care for those with special needs.
Because trust property remains in the special needs trust until a stated time, that property enjoys protection against abuse or misuse. At the same time, special needs trusts that implement a steady release schedule can ensure beneficiaries receive a consistent level of income. A dedicated trusts attorney may be able to help you to set up special needs trusts in Moorestown. These unique documents can bring you potential tax benefits and help ensure the safety of loved ones.
The Core Concept of a Trust
A trust functions as a way to transfer property between two parties. However, this is not a direct transfer. Instead, the trust maker sends property to a trustee. That trustee holds onto the property until the time comes to send the property to the beneficiary. This transfer can happen at any point in the future. In addition, this distribution can take place in installments, which can have especially useful applications for special needs trusts.
State law outlines how a party can create a trust. Under New Jersey Revised Statute § 3B:31-19, an individual can implement a trust by transferring assets to a trustee with instructions for distribution to another party at a future date. As long as the trust maker has the intent for this transfer to occur, the law presumes that the trust is valid. An attorney in Moorestown could further outline the process of creating a trust and clarify any nuances that might apply to special needs trusts.
How Trusts can be of Particular Use to People with Special Needs
Almost everyone knows another person with special needs. These people may be unable or unwilling to care for their own needs or struggle to properly handle money. Thankfully, special needs trusts can help care for these individuals and protect their futures.
One benefit to providing for another person’s care through a special needs trust is that the trustee oversees the distribution of the assets. The trustee has a duty under the law to disperse funds according to the language of the trust. This duty protects the assets and ensures that a person with special needs does not lose or misuse the money in the arrangement.
In addition, receiving income on a schedule through a trust can help make people with special needs eligible for government benefits. Programs such as SSI and Medicaid measure a person’s assets when determining their eligibility, so holding assets in a trust could help an individual with special needs stay under the income limit necessary to remain eligible for government benefits. If an individual in Moorestown needs help implementing a special needs trust that releases income on a fixed schedule, they could take their case to an experienced lawyer.
Call an Attorney about Special Needs Trusts in Moorestown
Unfortunately, many people in our lives are unable to care for their own needs. This could be because they are children, or they are suffering from a mental or physical condition. If this is the case, a special needs trust could help to ensure their financial stability for the immediate and long-term future.
Special needs trusts in Moorestown hold property on behalf of the beneficiary. The trustee has a duty under the law to only distribute funds at a specified date. This could help people with special needs retain a steady income while protecting their rights to collect government benefits. Reach out to an attorney today to learn more.