Arvada Special Needs Trust Lawyer
When a person has a mental or physical disability, it can make it challenging to manage their day-to-day life and the responsibilities that come with it. Their medical needs and the potential for their future care are of great concern to their families. There are measures you might consider if you have a family member with special needs that will ensure their needs are met now and in the long term.
An Arvada special needs trust lawyer can explain the advantages of a special needs trust and guide you in setting it up. One of our team at Colorado Estate Planning Law Center, will be glad to speak to you about your estate planning needs, including creating a long-term plan for your loved one with a disability.
What Is a Special Needs Trust?
By creating a special needs trust, you can ensure your loved one’s comfort and quality of life are secure without jeopardizing their Medicaid benefits. You may consider enacting a special needs trust to do the following:
- They may provide funding for medical and dental costs.
- Independent checkups
- Special equipment that is necessary or would improve their quality of life. These could include handicap-accessible vehicles and home alterations.
- Education opportunities and special training can allow the person enrichment and occupation opportunities.
- A special needs trust might fund your loved one’s insurance.
- Transportation needs can be provided for when necessary.
- Dietary expenses, depending on the person’s need, can be expensive. A special needs trust could make that affordable.
Funding for the beneficiary’s quality of life can include items such as those that follow:
- Vacations
- Electronics and appliances
- Computers and smart devices
- Entertainment opportunities
- Clothing
- Activities
A special needs trust must be a revocable trust to make changes as they are needed. In an irrevocable trust, things are written in stone, even though situations are not. Our team’s special needs trust attorneys understand how to design a living trust that is made to grow and evolve as their needs change.
Some special needs trusts include a government pay-back provision. This means after the death of the special needs citizen, the money is returned to the government upon their death. Other special needs trusts are left to other family members. We understand how to save your family money by determining their best needs, which are specific to each situation.
Different Types of Trusts
To ensure your disabled family member’s needs are properly met, you should be informed about the following types of trusts. Discuss which of the following trusts is right for you with your special needs trust attorney in Arvada.
First Party Special Needs Trust
The person with the disability funds their own trust in the case of a first-party special needs trust. The funding could come from various sources. Some common funding options are listed below:
- Personal injury awards: Funding for a special needs trust may come because the person’s disability was caused in an accident, and they won an award for their damages.
- Retirement plans: Sometimes, the funding for a first-party special needs trust comes from the person’s retirement plan.
- Divorce settlements: A divorce settlement might be put in trust to protect what the person was awarded in the divorce.
- Life insurance: Proceeds from a life insurance policy the person was the beneficiary of can fund a first-party special needs trust.
- Inheritance: If the party received money or assets in an inheritance, they could be used to fund the first-party special needs trust.
Since the disabled person does not own the assets once they are placed in the trust, it can be beneficial to them in various ways. For instance, their government benefits will not be encroached upon because of the strict requirements about what sort of income or money the disabled person has.
These are often referred to as a Miller trust, a litigation special needs trust, or a payback special needs trust. These trusts make money available for the person’s needs that are not covered by another government program. They can also not be used for basic needs like food and shelter. They are used for hobbies or education-related expenses.
Upon the death of the trust’s creator, this type of trust usually is meant to pay the state back for the benefits that the disabled person received.
Third-Party Special Needs Trust
Typically, family members create a third-party trust to take care of a person with special needs after their caretakers are no longer alive. They will ensure that the person has the financial ability to enjoy the highest quality of life available to them.
These types of trusts are governed by a trustee, who might be a family member or friend or a hired third party. This person will make spending choices about how the assets are handled, as the disabled person will not be allowed to do so.
Disbursements from the trust may be used for the following:
- Travel
- Entertainment
- Personal services
- Transportation
- Medical expenses that insurance does not cover
In a third-party trust, upon the death of the special needs individual, the funds are not taken to pay the state for the benefits they received in life. The trust is typically left to another family member.
Who Can Benefit From an Arvada Special Needs Trust Lawyer?
If you or a family member has a disability, you should speak to an Arvada special needs trust lawyer. We can make sure that your family member’s quality of life is improved without the loss of government benefits. Reach out today to discuss whether this route is the right one for you.
Call Our Arvada Special Needs Trust Lawyers Today
At Colorado Estate Planning Law Center, our special needs trust lawyers in Arvada are ready to help you plan for the needs of your physically or mentally disabled loved one. Ensuring they have the best life possible without putting their health benefits in jeopardy is our goal. Set up a consultation today to see how we can help.
