Setting Up a Special Needs Trust
Whether you are a parent who wants to secure funds for your
disabled child, or you are the victim of an injury that has left you
with a permanent disability, the special needs trust can offer a
valuable way to supplement essential living expenses – but it must be
set up properly. Very specific requirements surround the language used
in a special needs trust, and a simple mistake can render the trust
useless.
An effective and legally binding special needs trust will establish
that:
- The trust is managed by a trustee who is not the disabled
person;
- The trustee has the discretion to provide any necessary
assistance;
- The trust will not provide more income or resources to the
disabled person than permitted by the government;
- The trust will be used only for things above and beyond what
government assistance provides.
The trust also establishes the final arrangements for the disabled
person after his or her death, as well as what happens to any leftover
funds. Arrangements are made for a successor trustee should the
trustee die before the beneficiary.
The trust is protected against creditors or government agencies
trying to pay for debts of the disabled person or his or her family.
A special needs trust is a complex legal arrangement. If you are
considering establishing one, you need representation from an attorney
well-versed in estate law. Gregory Herman-Giddens, JD, LLM, CFP and
his fellow attorneys at TrustCounsel have more than 16 years of
experience in wealth planning, protection and management. We have the
knowledge and skill to handle complicated trusts, and we are committed
to protecting the financial future of disabled individuals.
Mr. Herman-Giddens is licensed to practice law in North Carolina,
Tennessee and Florida. With offices in Chapel Hill and Pittsboro,
N.C., he serves clients throughout the United States, affiliating with
local counsel when advisable to ensure the best possible
representation. Please contact TrustCounsel
today or call us at 800-201-0413. Email:
info@trustcounselpa.com.
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