Estate Planning Attorney Helping Clients in Maryland with Special Needs Trusts
There are many different types of trusts that an individual can create when he or she is thinking about estate planning. The key thing to know about trusts is that these legal entities allow a person to make decisions about assets and property while still alive. More simply, a trust can allow a person to name beneficiaries and to ensure that certain family members (or others) have what they need when the trust creator passes away. Given that there are so many different kinds of trusts, however, it can be difficult to know what kind of trust is appropriate for your particular situation.
Specifically, what is a special needs trust, and how can it allow an individual to provide for a loved one with a lifelong disability? A Maryland special needs trust attorney can discuss your situation with you and can help you to develop a trust that meets your and your family’s needs.
What is a Special Needs Trust in Maryland?
A special needs trust is a particular kind of trust that is set up by one person for the benefit of another person who has an incapacitating disability. Whether that individual has a physical, mental, or a developmental disability, a special needs trust can help. In short, the beneficiary of this kind of trust has special needs, and the trust is designed to provide financial resources for that beneficiary. Special needs trusts typically are tailored specifically to the requirements of the beneficiary for whom the trust is created.
A Maryland special needs trusts attorney can explain some of the benefits of such a trust in more detail.
Why Do I Need a Special Needs Trust?
Many beneficiaries of special needs trusts are eligible for government benefits such as Medicaid or Supplemental Security Income (SSI). As such, it is often important to provide benefits to a special needs individual through a trust instead of through a will so that the beneficiary can remain eligible for these additional forms of assistance. Why would a special needs trust be beneficial in relation to government benefits? In short, if the special needs individual receives assets or property through a will, she or he could have to list that inheritance as income, which could be disqualifying for government benefits like Medicaid and SSI. By providing the same assets and property through a special needs trust, you can ensure that the beneficiary will remain eligible for these government programs.
Even if your disabled child or other family members does not require benefits from government assistance programs, a special needs trust an still be tailored to provide specifically for the unique needs of the beneficiary, addressing financial necessities and needs such as:
- Personal care attendant costs;
- Medical expenses;
- Educational expenses;
- Physical therapy needs;
- Individual product and service needs; and
- Recreational activities.
Although the beneficiary is not currently in need of government benefits, it is important to plan ahead. By setting up a trust with help from an estate planning attorney, you can ensure that your loved one will be provided for in the years to come.
Set Up a Maryland Special Needs Trust Today
Do you have questions about establishing a special needs trust? A Maryland special needs trusts attorney can assist you. Contact Frame & Frame to get started.