There are many different forms of trusts that all perform various functions. One kind, known as a special needs trust, might be perfect for a certain group of people. The primary focus of a special needs trust is to give an individual with a disability the support and financial means they need to maintain their quality of life. These trusts could work for both children or adults, and they can accomplish a variety of objectives. Some of their main goals, along with providing ongoing financial support, include protecting eligibility for special benefits.
If someone needs assistance understanding or drafting special needs trusts in Mount Laurel, a knowledgeable attorney could assess a family’s situation and offer guidance.
How a Special Needs Trust Works
In order for someone to start considering a special needs trust, they should first begin by understanding how these arrangements work. These trusts must name a specific beneficiary, and the assets held in the document will exclusively benefit that person.
Generally speaking, the ultimate goal of a special needs trust is to provide a disabled person with monetary support above and beyond what they receive through government benefits. Programs like Medicaid and Social Security Income (SSI) are important, but they only provide for a person’s basic needs like food and housing. Meanwhile, special needs trusts can provide a disabled person with extra funds that they need to navigate the rest of daily life.
Means-tested programs like SSI have strict income requirements that could lead to a person losing their benefits based on an increase in their assets. However, one key aspect of special needs trust is that the funds within do not count towards this limit. Instead, the money inside one of these arrangements can be used as a supplement to a comprehensive social security payment. This safety net is often crucial for individuals with disabilities.
If a family or individual has further questions about how a special needs trust works, a seasoned attorney in Mount Laurel could meet with them during a private consultation.
Types of Special Needs Trusts
State laws allow families to create two distinct types of special needs trusts: individual and pooled arrangements. An individual trust is intended to benefit one specific disabled person, usually a family member. A variety of relatives could add money to this trust, or the disabled person could as well. They are versatile and flexible estate planning documents.
Meanwhile, a pooled special needs trust involves combining the assets of many different beneficiaries into one single arrangement. This approach is often less expensive to maintain since third-party organizations often oversee the administration. A polled trust is an excellent option for disabled people who do not have a family member who can assist them with management and administration. However, the drawback to these arrangements is that the state could seize a portion of the funds after a beneficiary passes away.
A knowledgeable lawyer in Mount Laurel could assess a disabled person’s situation to figure out whether an individual or pooled special needs trust is right for them.
Reach Out to an Attorney About Special Needs Trusts in Mount Laurel
Special needs trusts can be complicated, but they are also useful arrangements that could dramatically improve the quality of life for a loved one living with a disability. The arrangements could preserve their right to collect government benefits while offering them much-needed financial assistance. Drafting and implementing one of these arrangements could be much easier with the help of a lawyer who understands special needs trusts in Mount Laurel. Call our office today to speak with a team member and schedule your initial appointment.