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Special Needs Estate Planning Lawyers in Chester County, PA, Helping Families Have Peace of Mind About the Future

One of the best ways to protect your family is to create an estate plan that provides the financial resources they will need after you pass away. However, if you have a special needs family member planning for the future can seem like an overwhelming task.

In many cases, a disabled person receives necessary governmental benefits that provide them with a monthly income and healthcare coverage. However, special needs individuals may be limited as to the monetary resources they are permitted to have at their disposal without the threat of having their benefits withdrawn.

Nevertheless, a Special Needs Trust can give you peace of mind and the assurance you need that your loved one will be financially secure after your death. Contact Peak Law Group of Chester County to schedule a free initial consultation to discuss your needs and explore your legal options.

What Are the Benefits of a Special Needs Trust?

A Special Needs Trust, or a Supplemental Needs Trust (SNT), is an estate planning tool that can provide much-needed financial assets to a disabled person. One of the most significant advantages of a Special Needs Trust is the assets contained within the trust are excluded when determining eligibility for governmental benefits such as Supplemental Security Income (SSI) or Medicaid.

Some of the other considerable benefits associated with creating a Special Needs Trust include:

  • A trustee manages the assets in the trust and, therefore, are not considered part of your loved one’s assets.
  • All funds and other assets contained in the trust are tax-deductible.
  • The resources in the trust may only be used to care for the disabled person and cannot be seized by creditors.

However, individuals who wish to create a Special Needs Trust should be aware that this type of trust must be created before the intended beneficiary turns 65. Additionally, upon the beneficiary’s death, any assets remaining in the trust revert to the beneficiary’s estate or are distributed to other heirs.

What is a Pooled Trust?

A Pooled Trust differs from other types of special needs trusts as it is created and administered by a non-profit organization. Additionally, multiple beneficiaries also benefit from the resources contained within the trust. However, each individual has their own separate sub-account.

Even though a non-profit organization establishes the Pooled Trust, each sub-account is privately funded by a family member of the disabled person, such as a parent, grandparent, guardian, or the individual.

The pooled Trust is like a Special Needs Trust as it allows disabled individuals to have financial resources at their disposal that will not count against them in terms of eligibility for benefits. However, a Pooled Trust is unlike a special needs trust that reverts to the estate or disperses the remaining assets to other beneficiaries upon the death of the disabled person.

Instead, upon the death of the beneficiary, the trust must pay the state the total amount of Medicaid assistance provided to the special needs individual while they are alive.

The laws governing a Pooled Trust can be overly complex and difficult to understand without the help of a trained legal representative. If you are still undecided whether a Pooled Trust is a viable option for your loved one, please contact Peak Law Group of Chester Co, PA, for more information.

What Expenses Can Be Paid Out of a Special Needs Trust?

If you are considering establishing a Special Needs Trust for your loved one, you may be curious about the expenses the trust can pay.

Some of the expenses that may be paid include:

  • Phone and internet bill
  • Computer equipment
  • Educational supplies such as textbooks, school supplies, and tuition.
  • Dental appointments
  • Medical devices
  • Household items
  • Life insurance premiums
  • Clothing
  • Entertainment related expenses

However, the money in the trust must be spent on something other than items such as housing expenses or food.

How Can Your Law Firm Help Me Plan For My Special Needs Family Member?

If you would like to create a Special Needs Trust for your loved one, Peak Law Group would be honored to assist you with your needs. The first step is to evaluate the needs of your loved one. Next, we will work with you to establish a trust that adequately provides financial resources for your family member.

Once the trust has been established, we will explain the legal process involved in estate administration. We can also advise you on choosing a trustee that will oversee the needs of your loved one after you are gone.

Our legal team uses new and innovative approaches when establishing a special needs trust. We recognize that as the family member of a special needs individual, you want to be assured they will have the financial resources they need after you pass away to live a comfortable life.

Our law firm prides itself on helping families have peace of mind and provide for their loved ones by planning ahead. Contact Peak Law Group of Chester, CO, PA, at 610-989-7064 to schedule a free no-obligation consultation.