When you have disabled relatives, you should consult with an Overland Park trust attorney to find out how to provide for and protect your loved ones who have a disability. If you wish to make a financial gift or if you want to help your loved one with a disability to ensure his own assets are protected, trusts may become an essential legal tool. An attorney will help you understand how to make trusts work for you.
Parman & Easterday has extensive experience with trusts, including those designed to protect people with special needs. Give us a call today to find out more about the services an Overland Park trusts attorney can provide in helping you to care for someone you love who has a disability.
How an Overland Park Trusts Attorney Helps You Provide For a Disabled Relative
If you have a relative or a friend with a disabling condition, you know he or she may not be able to work. As a result, it is very important to make sure he or she has the financial resources to lead a comfortable life.
At the same time, you cannot just give money or assets because the property you transfer to him or her would count as a resource and result in ineligibility to receive coverage through Medicaid. This could occur since Medicaid is means-tested and limited only to low-income individuals with few resources. You could also cause a loss of access to Supplemental Security Income for the same reason, because a gift puts your loved one over resource limits.
You may also be concerned about making a financial gift to a loved one who has special needs because your friend or relative may be unable to manage the money or property due to the loved one’s disability. You do not want the money to be lost or wasted.
Fortunately, a special needs trust can solve both the problem of who will manage the money and property as well as the problem of how to preserve access to benefits while still making sure the person with the disability has sufficient income to live comfortably.
A special needs trust allows you to name a trustee who will manage the money and assets in the trust. You can provide instructions in your trust document regarding how the money or other assets left in the trust should be used to care for the person who is disabled and named as the trust beneficiary. Because the person with special needs does not “own” the assets which have been left in trust, you can make certain he or she does not lose access to benefits.
Providing financially for someone with disabilities is just one of the things an Overland Park trust attorney can help you to do. If you are a parent or guardian of someone with special needs, your lawyer can also provide you with advice on naming a backup guardian if something happens to you, as well as advice on what types of life insurance or other coverage you may wish to purchase for yourself to make certain there is enough money to care for the person with disabilities who you love.
Types of Trusts To Create to Provide for a Disabled Relative
Not all trusts will provide the right protection for someone with a disability, so you need to make sure you work with an Overland Park trust attorney to create the right type of trust. You should create a third party special needs trust if you are going to be funding the trust with your own money or property for the benefit of a person with disabilities as the beneficiary.
If you are going to be funding the trust with assets owned or acquired by the person with the disability (such as with money that comes from a personal injury settlement), then you will need to create a first party special needs trust. Your attorney can advise you on which option is right for you.
Getting Help From an Overland Park Trust Attorney
An Overland Park trust attorney at Parman & Easterday can provide you with assistance in determining if you require a special needs trust to provide for someone who you love who has a disabling condition. You can learn more about special needs trusts and other types of trusts by joining us for a free seminar. You can also give us a call at (405) 843-6100 or contact us online to find out about the personalized assistance we can provide to you.
- Why Do You Need a Lawyer to Plan Your Estate? - September 15, 2022
- Lessons Learned From the Estate of Zappos Multimillionaire Tony Hsieh - September 13, 2022
- Are You Aware of the VA Aid and Attendance Pension? - September 8, 2022