Contact us today: 843.718.0232
Share

Special Needs Planning

What is the purpose of a Special Needs Trust?

When should a Special Needs Trust be established?

Who can establish a Special Needs Trust?

Our family is wealthy. Do we still need to create a Special Needs Trust?





Q: What is the purpose of a Special Needs Trust?

While you can certainly bequest money and assets to those with special needs, such a bequest may prevent them from qualifying for essential benefits under the Supplemental Security Income (SSI) and Medicaid programs.  However, public monetary benefits provide only for the bare necessities such as food, housing and clothing.  As you can imagine, these limited benefits will not provide your loved ones with the resources that would allow them to enjoy a richer quality of life.  Fortunately, the government has established rules allowing assets to be held in trust, called a Special Needs or Supplemental Needs  Trust  for the benefit of a recipient of SSI and Medicaid, as long as certain requirements are met.


Back to the top.

Q: When should a Special Needs Trust be established?

Generally, a Special Needs Trust should be established no later than the beneficiary’s 65th birthday. If you have a disabled or chronically ill beneficiary, you may want to consider establishing the Special Needs Trust at an early age.  One benefit of having the Trust in place is that if the disabled beneficiary becomes the recipient of funds such as gifts, bequests or a settlement from a lawsuit they can immediately be transferred to the Special Needs Trust without affecting that individual’s eligibility for government benefits.


Back to the top.

Q: Who can establish a Special Needs Trust?

While Special Needs Trusts are typically established by parents for their disabled children, any third party can establish a Special Needs Trust for the benefit of a disabled beneficiary.  It is important to seek the assistance of competent counsel when creating a Special Needs Trust because a poorly drafted Trust can easily be subject to “invasion” by the government agencies that provide benefits.  Our law firm has the experience and the expertise to establish effective Special Needs Trusts for anyone who wishes to provide for a disabled beneficiary.


Back to the top.

Q: Our family is wealthy. Do we still need to create a Special Needs Trust?

Yes, you should still establish a Special Needs Trust to protect your disabled beneficiaries from potential creditors.  For example, if your disabled beneficiaries are ever sued in a personal injury action, the assets in the trust would not be available to the plaintiffs.  Furthermore, because the funds in the Special Needs Trust are not countable as available assets for purposes of determining government benefit eligibility, more of your money can be used for those supplemental expenditures that will allow your disabled beneficiary to enjoy a higher quality of life.  Otherwise, much of your assets will be used to pay for private care benefits that are extremely expensive and can drain even significant sums of money over time.


Back to the top.


Wiles Law Firm, LLC helps clients with their estate planning needs in Charleston, South Carolina and the surrounding areas such as West Ashley, Summerville, North Charleston, Mount Pleasant, and John's Island.

Information on this website is not legal advice. Further, viewing of the enclosed information does not create an attorney-client relationship with Wiles Law Firm, LLC. Matters will be handled by attorneys who primarily practice out of our office in Charleston County located at 852 Lowcountry Blvd., Ste. 101, Mt. Pleasant, SC 29464. M. Emerson Wiles, III is the attorney responsible for this advertisement.

Any result Wiles Law Firm, LLC may achieve on behalf of one client in one particular matter does not necessarily indicate similar results can be obtained for other clients. Please contact a South Carolina estate planning attorney or one of our attorneys with Wiles Law Firm, LLC for a consultation regarding your unique estate plan.



© 2019 Wiles Law Firm, LLC | Disclaimer
852 Lowcountry Blvd., Suite 101, Mount Pleasant, SC 29464
| Phone: 843-718-0232

Wills & Trusts | Asset Protection | Irrevocable vs. Revocable Trusts | Community Property Trust | Gift Trusts | Inheritor's Trusts | High Net-Worth Estate Planning | Special Needs Trusts | IRA Trusts | Powers of Attorney | Conservatorships | Pet Trusts | Special Needs Planning | Probate & Trust Administration | Estate Planning | Incapacity Planning | Advanced Estate Planning | | Resources | Contact Us | About Us

Google+Twitter

Attorney Website Design by
Zola Creative