Special Needs Trusts Lawyer: Ensuring Long-term Care in Draper, Utah
When planning for a special needs child or family member, long-term estate planning becomes essential. A disabled loved one may require ongoing care throughout their life; however, government benefits like Medicaid or SSI have strict eligibility rules, and receiving too many assets could disqualify your loved one.
Through careful planning, a Special Needs Trust can help ensure your loved one can access vital government benefits while also receiving additional financial support for things that government programs don’t cover, such as specialized care or activities that enhance quality of life.
What Is a Special-Needs Trust in Utah?
A Special Needs Trust, also known as a “Supplemental Needs Trust,” is an estate planning tool designed to help individuals with disabilities. It allows you to set aside assets for the benefit of your loved one without affecting their eligibility for government assistance programs like Medicaid or SSI. This trust can be used to pay for things that public benefits don’t cover, such as personal care services, medical expenses, and other needs that improve their quality of life. It’s an important option to consider if you want to ensure your loved one’s financial security while protecting their access to vital public benefits.
Types of Special Needs Trusts
There are two main types of Special Needs Trusts (SNT) in Utah: First-Party and Third-Party Special Needs Trusts.
A First-Party Special Needs Trust is funded with the assets of the individual with disabilities. It’s typically used when someone receives a lump sum, like a settlement or inheritance. The trust helps protect their eligibility for government benefits while covering expenses not paid by those benefits.
A Third-Party Special Needs Trust is funded by someone else, usually a family member or loved one. This type of trust allows them to provide for the disabled person’s needs without affecting their eligibility for government assistance programs.
Purpose of a Special Needs Trust
The purpose of a Special Needs Trust (SNT) is to provide extra financial support for an individual with special needs without affecting their eligibility for important government benefits, like Medicaid or Supplemental Security Income (SSI). These benefits cover basic living costs, but a Special Needs Trust can be used to pay for additional needs that government programs don’t cover, such as personal care, medical expenses, or special equipment.
When set up and managed correctly, a Special Needs Trust ensures the individual can still receive government assistance while improving their quality of life with the extra funds from the trust. It’s important that the trust is properly structured to keep government benefits intact and make sure the grantor’s wishes are followed.
How Will a Special Needs Trust Care for Your Child After You’re Gone?
When a parent with a disabled child passes away, a special needs trust can ensure their child continues receiving government benefits like Medicaid and SSI. These benefits have strict asset limits—$2,000 for SSI—so leaving an inheritance directly to the child could cause them to lose these benefits.
A special needs trust allows parents to leave money for extra care, like special equipment or therapy, without affecting the child’s eligibility. A trustee manages the funds, and any remaining money after the child’s death can go to other family members, ensuring long-term care and support for the child.
Find out why having an estate plan is essential for you and loved ones.
I Can Help with Your Special Needs Trust
At Watts Law, I take the time to understand your family’s unique needs and develop a comprehensive, customized estate plan. This plan can include a Special Needs Trust that secures your loved one’s future, giving you peace of mind.
Contact me for a free consultation on estate planning and trust law at (801) 630-8309, and let me help you provide a stable, secure future for your family.