Special Needs Trust


Children with special needs, or who developed special needs or disabilities after birth due to an accident or injury, typically need someone to handle their financial affairs. If this is your circumstance, you have specific considerations when it comes to your estate planning needs. Parents of special needs children need to ensure that their children will be taken care of properly. A Special Needs Trust (SNT) provides parents this comfort. As with any type of estate planning documents, there are some advantages and disadvantages to an SNT.

 Advantages

SNTs are usually created for children who are unable to live independently for the rest of their life or handle their own finances. There are several advantages to this type of trust including:

  • Children will remain eligible for financial assistance from SSI or Medicaid, and the SNT helps fund any care that is required above and beyond what is provided through these government services.
  • Funds from an SNT are used to take care of the child with a disability. This helps ensure that a child is not taken advantage of by a person looking to manipulate your child for financial gain.
  • The funds from an SNT are tax-deductible. over what the government will provide.
  • The funds will be deductible from taxes.
  • These funds in an SNT are only available for the care of your child and never used to pay any judgments regarding your creditors.

 Disadvantages

 Some of the disadvantages or challenges with the creation of an SNT include the following:

  • The costs to create an SNT are higher and include a fee to establish as well as an annual fee. Additionally, there are specific minimum threshold amounts needed to start an SNT. These fees may make an SNT cost-prohibitive for certain families.
  • Your child will have to ask for any necessary funds from the trustee who oversees the SNT. This trustee will have complete discretionary control over the funds in the SNT. While this may frustrate some children, the benefit is that their financial security will be established for the rest of their lives.
  • Medicaid must be repaid in the exact amount that Medicaid is paid out on the child’s behalf. Unfortunately, this may completely wipe out the SNT after the child’s death or when the trust is legally terminated.

 Contact an Estate Planning Attorney

If you have a special needs child, you have many different considerations regarding your estate planning needs. Contact an experienced estate planning attorney at the law firm of Giro Law at 201-690-1642 to help you understand the best options for your unique situation.

Comments

Post a Comment

Popular posts from this blog

Can My Ex Stop My Children From Being Vaccinated in New Jersey?

Image
When couples divorce in New Jersey, many are concerned that they will no longer have control over major decisions that impact the lives of their children. One major decision today involves  COVID-19 vaccinations . People have strong opinions on this subject, and many former spouses in New Jersey do not agree on the correct course of action. Unfortunately, this may lead to one parent taking legal action against the other. Can one parent really have the final say on this matter? If you are dealing with this situation, it is probably best to get help from a legal professional. A family law attorney in New Jersey can explain your options in a clear, concise manner. They can also help you fight for the right to make important decisions about your child’s life, even if it means representing you in court. What Type of Custody Do You Have? The first question is whether or not you have primary legal custody. This situation is actually quite rare, but it means that you have complete freedom to m
Read more

Why Establishing Paternity is Important in New Jersey

Image
  From a moral perspective, determining who has fathered certain children is important for society. But it is also important from a legal perspective. For parents in the Garden State, establishing  paternity  may be a priority for a number of reasons. Whether you are the father or the mother in this situation, you may feel like this is a daunting, complex legal process. Thankfully, there is always help available for those who need it. A qualified, experienced family law attorney in New Jersey can assist you as you approach the paternity process. Our legal professionals understand the various challenges and hurdles associated with this situation, and they can answer all of your questions. Ideally, you should team up with an attorney who specializes in paternity cases. Why Might You Want to Establish Paternity? There are a number of reasons you might want to establish paternity: Child Support:  In order to collect  child support from a father , you must first establish that this individu
Read more

What is the Difference Between Adoption and Guardianship in New Jersey?

Image
Taking a child under your wing is one of the most rewarding things you can do, especially if that child has lost their parents or has been suffering in an unsafe environment. In New Jersey,  there are a number of different ways in which you can welcome a child into your family . One is adoption, and the other is guardianship. So what is the difference between these two legal concepts? Which one should you choose? Are there certain benefits for either route? All of these questions and many others can be answered by a qualified, experienced family law attorney in New Jersey. If you are approaching the process of guardianship or  adoption , it makes sense to consult with one of these legal experts. Not only can a lawyer help you choose the best option, but they can also guide you through the process in an efficient manner. The Two Options Available to You Kinship Legal Guardianship:  Popular among grandparents and relatives, this allows you to get children out of foster care and into a st
Read more