Estate planning, no matter who you are, is critical. However, if you are someone who has a loved one with special needs, you will have to consider creating a comprehensive estate plan all the more. Please continue reading and reach out to our experienced New Jersey estate planning attorney to learn more about special needs trusts and how they may help you and your loved one have peace of mind so you can focus on what matters most in life. Here are some of the questions you may have:
Why Should I Create a Special Needs Trust for My Loved One?
People create special needs trusts for multiple reasons. The main benefit of creating such a trust is so that your loved one with special needs will have access to the government benefits he or she needs, all while still receiving the inheritance you intended for him or her to have. Some of the government benefits your loved one may be entitled to include Medicaid and Supplemental Security Income.
What Are the Different Types of Special Needs Trusts?
Pooled special needs trusts: This type of special needs trust will pool several members’ assets into a single investment fund. That being said, to create such a trust, you will have to demonstrate that your loved one has a disability and that the trust will be developed through a nonprofit organization.
First-party special needs trusts: If you are a parent, grandparent, or are the legal guardian of someone with special needs who is younger than 65 years old, you may create a first-party special needs trust. This is an irrevocable trust and will be funded with the beneficiary’s assets. Once you create the trust, a public agency will retain reimbursement upon death.
Third-party special needs trusts: These are for individuals who wish to fund the trust for a beneficiary either during their lifetime or after they pass. This trust will usually be funded through their life insurance, though family/close friends can contribute to the trust through gifts.
If you have any additional questions about special needs trusts in the state of New Jersey, or you would like to establish one, please do not hesitate to reach out to our experienced New Jersey firm today. We are here to help you through every step of the process ahead.
Contact Our Experienced New Jersey Firm
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. That is why we are confident we have what it takes to provide you with the effective legal counsel you need. If you need experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.