A trust can be created to protect loved ones with special needs, credit shelters, assets and property, life insurance, charitable giving, firearms and even your pets.

Special Needs Trust

The Special Needs Trust is very important when there are potential beneficiaries who have a disability.  Under current rules, a person can be disqualified from Medicaid and Social Security Benefits if they receive more than $2,000.00 in assets. In many cases, family members want to make a gift to the disabled person for their benefit.  When not done properly the gifts cause several problems.  This ensure that the intended beneficiary truly will receive the benefits without interrupting the Government programs that currently benefit them.

Irrevocable Living Special Needs Trust

The Irrevocable Living Special Needs Trust is great when a person is still living and wishes to benefit a child with special needs now and in the future. The simplest explanation is given when you break it down into parts:

First, irrevocable means that property and money gifted cannot be recovered by the person making the gift. 

Second, Living simply means that it is created during the Grantor’s lifetime and becomes its own entity now.  This means it will have a separate tax id number and file its own tax return should it earn any income. 

Third, Special Needs simply means that it is set up for the benefit of a person with special needs with the proper provisions to ensure that the person is not disqualified from government benefits.

Finally, Trust means that there is property held and used for the benefit of a beneficiary and managed by a Trustee.

Testamentary Special Needs Trust

A Testamentary Special Needs Trust is included in a Last Will and Testament. The Last Will and Testament will state that the person with special needs should not receive any property outright, but that it should all be held and administered according to the Special Needs Trust.

Letter of Intent

This is a document that puts into writing all relevant information regarding the person with Special Needs.  Such information includes, doctors, dentists, care-givers, teachers and case-workers.  It should also include medications and pharmacies, along with insurance information.