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san antonio special needs lawyer
If you have a child or family member with special needs, specific planning is necessary to ensure that they are protected should something happen to you. Traditional gifting of money or property to a person with special needs can cause more harm than good. If you are thinking of leaving assets meant to benefit a person with special needs, contact us to make sure the items are left in a Special Needs Trust to benefit the person as you intend.
special needs trust
The Special Needs Trust is a very important part of every estate plan when there are potential beneficiaries who have a disability. Under current rules, a person can be disqualified from Medicaid and Social Security Benefits if they receive more than $2,000.00 in assets. In many cases, family members want to make a gift to the disabled person for their benefit. However, when not done properly the gifts cause several problems. Creating a Special Needs Trust to accept the gifts ensure that the intended beneficiary will still receive the benefits of the gift without interrupting the Government programs that currently benefit them.
irrevocable living special needs trust
The Irrevocable Living Special Needs Trust is simply a trust that a person creates while they are still living to benefit a child with special needs now and in the future. The simplest explanation is given when you break it down into parts. First, irrevocable means that property and money gifted to the trust cannot be recovered by the person making the gift. Anything put in the trust becomes owned by the trust and held for the benefit of the Beneficiary. Second, “Living” simply means that the trust is created during the Grantor’s lifetime and becomes its own entity. This means it will have a separate tax id number and file its own tax return should it earn any income. Third, “Special Needs” simply means that it is set up for the benefit of a person with special needs with the proper provisions to ensure that the person is not disqualified from government benefits. Finally, “Trust” means that there is property held and used for the benefit of a beneficiary and managed by a Trustee. The Irrevocable Living Special Needs Trust works great for people who foresee that others may also want to leave assets to the person whom they intend to benefit. You can set this trust up now and let family and friends know where to make the gifts without disqualifying the person from government benefits.
The Irrevocable Living Special Needs Trust works great for people who foresee that others may also want to leave assets to the person whom they intend to benefit. You can set this trust up now and let family and friends know where to make the gifts without disqualifying the person from government benefits.
testamentary special needs trust
A Testamentary Special Needs Trust is included in a Last Will and Testament. The Last Will and Testament will state that the person with special needs shall not receive any property outright, but that it should all be held and administered according to the Special Needs Trust. The Testamentary Special Needs Trust does not become active until the Last Will and Testament has been admitted to Probate. At that time, the Executor will establish the Trust, obtain the tax identification number for the Trust, and deposit property into the Trust. The named Trustee will then take over management of the trust property.
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