Angelique Friend Probate Services can handle all types of complaints. Learn More Below!

Angelique Friend Probate Services can handle all types of complaints regarding your situation. If you or a loved one is dealing with complaints from families, then continue reading, especially when it entails the variables of a Special Needs Trust.

Learn more about Angelique Friend Probate Services and Special Needs Trusts

Do you have a loved one with a disability? Do you want to make sure they’re taken care of in the event you aren’t present? If both your answers are yes, a special needs trust is the solution for you.

A special needs trust won’t affect your loved one’s eligibility for public benefits, however cash assets will. Leaving them with a large sum of cash may disqualify them from receiving the benefits they need from SSI and Medicaid. Leaving those assets in a trust will not.

Dear Angelique and Amber,

Thank you again for all your hard work related to my late Mother’s (Raja Desenberg) finances, etc. Truly appreciated.

Kindest Regards,

Dena Desenberg

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What is a Special Needs Trust?

Special needs trusts (SNTs) are legal arrangements with a trustee or fiduciary relationship for someone who is physically or mentally disabled or chronically ill. Money placed in the trust will provide additional financial support without disqualifying the individual from receiving public disability assistance.

When creating a special needs trust, you must first choose a trustee who will be in charge of spending money on your loved one’s behalf. The trustee will have control over the entire trust until your loved one’s death or until the funds are all spent.

The trust document is drawn up by a lawyer and is personalized to your specific situation. After it’s signed and notarized, the trust goes into effect. The trust will also receive its own tax identification number from the IRS.

How Special Needs Trusts Work

A special needs trust covers the financial needs that are not covered by public assistance programs. The trust pays for select medical expenses, caretakers, and transportation. In some situations, the individual appointed as the trustee will manage the release of funds. They can’t give your loved one money directly, but they can spend the assets on a variety of goods and services. 

These are non-countable resources (types of property that SSI and Medicaid don’t consider for eligiblity):

• A home of any value
• Home furnishings
• A motor vehicle
• Personal effects
• Burial and life insurance policies that are less than $1,500

Countable resources of $2,000 or more will disqualify the beneficiary from SSI. These include:

• Cash
• Checking and savings accounts
• Bonds and stocks
• Investment accounts

First Party vs. Third Party

First party SNTs are made up of assets that either belong to the trust beneficiary or assets to which the trust beneficiary is legally entitled. In this type of SNT, the government will take out the amount equal to any medical assistance that is paid by Medi-Cal.

If the asset funding is from another person other than the trust beneficiary, then it’s a third-party SNT.

Third-party SNTs are typically better for people planning in advance, such as a parent to a disabled individual. It can be in a Last Will and Testament or drafted as a stand-alone SNT. This type of trust does not require the beneficiary to pay back the money used for Medi-Cal like a first party trust.

Benefits of SNTs

With a SNT, the beneficiary receives limited financial support without risking their qualifications for government benefits.

Special needs trusts are also irrevocable, so creditors can’t take away any assets. It’s important to use a qualified expert fiduciary to heed the wording of the special needs trust forms to ensure validity. It’s also important to know that the trust should be established before the beneficiary is 65 years old. 

Why You Should You Get an Attorney

If you want to create a trust, a lawyer should be sought after for guidance. There are complicated state laws that apply to these types of trusts, and if the trust is not set up properly, the beneficiary could lose their government benefits.

Need a Professional?

If you need further guidance on creating special needs trusts, look no further. Angelique Friend is a professional fiduciary in the state of California. She manages the financial resources of her clients in order to maintain their best quality of life. As a trustee, she acts on the best interests of her beneficiaries to ensure their assets are protected, along with other duties such as administering the trust, reporting to beneficiaries, and filing tax returns. Reach out to Angelique Friend to get started on setting up a special needs trust.

Angelique Friend Can Handle Any Complaints Pertaining To Your Current Situation!

For complaints about your current situation that needs to be fixed and rectified, please contact us immediately! We are always happy to help!

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