Supplemental Needs Trusts Can Provide for Long-Term Care

Parents should be aware that a supplemental needs trust can ensure that their children with special needs will have assets for their care long into the future.

2012-07-26

July 26, 2012 (Press-News.org) Supplemental Needs Trusts Can Provide for Long-Term Care

Parents often worry about their children and what the future holds for their offspring. Parents of children with special needs may be even more anxious than most parents, with an acute worry about who will care for their children after the special-needs child's parents have passed away. Parents should be aware that there are estate planning options, such as a supplemental needs trust, that can ensure that their children will have assets to meet their needs long into the future.

What Is a Supplemental Needs Trust?

A supplemental needs trust, sometimes called a special needs trust, is a trust specifically designed to fund the care of a person with special needs while maintaining the person's eligibility for government benefits such as Social Security and Medicaid. A trust has a trustee to manage the trust's assets and the person with special needs is named as the beneficiary. The trustee determines how much of the trust's assets the beneficiary receives.

What Are the Different Types of Special Needs Trusts?

Three different types of supplemental needs trusts exist:
-Third-party trust: Relatives of a person with special needs, such as parents or grandparents, establish the trust using their assets to fund it. Relatives usually establish such trusts rather than give a person with special needs a direct bequest in a will in order to ensure the person with special needs will maintain eligibility for government benefits.
-First-party trust: When a person with special needs has his or her own money through an inheritance or a court judgment, that money may go into a special needs trust to keep the person eligible for government benefits as long as the person's relatives or the court establish the trust and the state receives any money left in the trust after the beneficiary's death.
-Pooled trust: A pooled trust is set up by an organization to administer many people's special needs trusts.

What Should Accompany a Special Needs Trust?

A special needs trust should be just one part of a plan for a child with special needs. Parents may also want to consider:
-Appointing a guardian
-Drafting a letter detailing information for the child's caregiver, such as medical history, religious practices, favorite foods, hobbies, etc.
-Arranging housing for when the child becomes an adult
-Establishing health insurance for the child that will last into adulthood

Talk to an Attorney

Planning for a child with special needs may seem like an overwhelming task. A sensitive, experienced estate planning lawyer can make the process manageable, however. If you have a child with special needs, do not delay in seeking legal guidance to create a plan to provide for your child after you are gone.

Article provided by King, Kitrick & Jackson, LLC
Visit us at http://www.kkjelderlaw.com

ELSE PRESS RELEASES FROM THIS DATE:

Why Have a Will?

2012-07-26

Why Have a Will? Making plans for asset transfers after a person dies is not high on many people's lists of fun things to do. However, everyone over the age of 18 should have a will to detail how they want to distribute their possessions after they die. People should understand who needs a will, the contents of a will and the benefits of having a will. Who Needs a Will? All adults need wills. However, having a will can be even more important for those who: -Are married -Have been divorced -Have children -Have partners but are not married -Own a business ...

Federal Study: One-Third of Teens Admit to Texting While Driving

2012-07-26

Federal Study: One-Third of Teens Admit to Texting While Driving A nationwide study by the U.S. Centers for Disease Control and Prevention found that one-third of teenagers are texting behind the wheel. The 2011 CDC study anonymously surveyed more than 15,000 high school students to analyze their driving habits and experiences. While dangerous behaviors like drinking and driving and failure to wear a seatbelt are seeing marked reductions, one-third of the teenagers admitted to texting or emailing while driving during the month preceding the survey. Further, while ...

After Foreclosure or Bankruptcy, More Americans Are Buying Homes Again

2012-07-26

After Foreclosure or Bankruptcy, More Americans Are Buying Homes Again A growing number of Americans are qualifying for home mortgages and re-entering the housing market just a few years after losing a previous home to foreclosure, Reuters reported recently. Many of these buyers lost their homes in the Great Recession, and some feel they are being given a second chance -- much sooner than they expected, in some cases. Since 2007, there have been more than 4 million foreclosures in the US, and that number is expected to reach 6 million by 2014, according to RealtyTrac, ...

New Yorkers Asking for Ignition Interlock Devices on All Cars

2012-07-26

New Yorkers Asking for Ignition Interlock Devices on All Cars After a recent high school graduate was killed when she was hit by a drunk driver, a petition called "Install Sensitive Interlock Devices" was started on the website Change.org. The petition urges lawmakers in New York State to require alcohol-sensing devices in all cars. If installed, the devices would stop cars from starting when a person is over the legal blood alcohol content limit. Public Support for the Petition If the petition gets into the legislature, it will be called "Brittney's ...

Financial and Estate Planning Considerations for Same-Sex Couples

2012-07-26

Financial and Estate Planning Considerations for Same-Sex Couples In these tumultuous times, the legal and financial landscape for same-sex couples is in a state of constant flux, making long-term planning a challenging task. This article outlines a few important considerations for same-sex couples who are planning for the future together. Inheritance A potentially complex issue under any circumstances, inheriting property and other assets after the death of a partner can be especially complicated for same-sex couples. To help ensure that your loved ones are provided ...

How Does a Person Qualify to File Chapter 7 Bankruptcy?

2012-07-26

How Does a Person Qualify to File Chapter 7 Bankruptcy? Chapter 7 bankruptcy is also known as "liquidation bankruptcy" because the trustee in the case liquidates all of the filer's assets that are not protected by exemptions to pay back creditors. Then the court absolves the filer of personal liability for all remaining debts. In 2005, Congress amended the law in an effort to ensure that only those who truly need the powerful protections of Chapter 7 bankruptcy can file. As a result, people now need to pass a means test before filing for Chapter 7 bankruptcy, ...

Former Tennessee Football Player Files Chapter 11 Bankruptcy

2012-07-26

Former Tennessee Football Player Files Chapter 11 Bankruptcy Football player Jamal Lewis, who once played for the Tennessee Volunteers and went on to have a professional football career in the NFL, filed for bankruptcy in June of 2012. While stories about professional athletes with money troubles are not uncommon, what may be surprising about Lewis' case is that he filed for Chapter 11 bankruptcy protection -- the type most people associate with business reorganizations. Chapter 11 bankruptcy is available to individuals in some cases and offers people several benefits. High ...

Surprising Credit Score Killers

2012-07-26

Surprising Credit Score Killers Many know that it is important to maintain good credit. Credit ratings can affect so many aspects of a person's life, including the ability to obtain home and auto loans, the interest rates on loans, the ability to rent housing, and in some cases job opportunities. People trying to rebuild their credit should be aware of some of the more surprising things that can undo the work they have done. Collections Once an account of any type goes to a collections agency, it has a negative effect on a person's credit score. People may not ...

Centered For Excellence: Mihaylo College Family Business Educational Forum Debuts New Name

2012-07-26

California State University Fullerton's Mihaylo College of Business and Economics today announced that its Family Business Council now will be officially recognized as the Center for Family Business. The rebranded Council is now aligned with Mihaylo's 13 other Centers of Excellence that focus on specific areas of interest and are an integral part of the business school's practical approach to education. All of the Centers address a variety of needs and issues in the community, providing an array of services to local business and government sectors and presenting Mihaylo ...

NAABB Executive Director Named Leader for Bioscience Division

2012-07-26

The National Alliance for Advanced Biofuels and Bioproducts (NAABB), a consortium of leading scientists and engineers from universities, private industry, and national laboratories led by the Donald Danforth Plant Science Center announced Executive Director, Jose Olivares has been selected to serve as Division Leader for the Bioscience Division, a central hub for biotechnology development at Los Alamos National Laboratory (LANL). Olivares who has considerable experience in algal biofuels research, will lead a team of 180 researchers and staff within disciplinary groups ...

LAST 30 PRESS RELEASES:

Risk of internal bleeding doubles when people on anticoagulants take NSAID painkiller

‘Teen-friendly’ mindfulness therapy aims to help combat depression among teenagers

Innovative risk score accurately calculates which kidney transplant candidates are also at risk for heart attack or stroke, new study finds

Kidney outcomes in transthyretin amyloid cardiomyopathy

Partial cardiac denervation to prevent postoperative atrial fibrillation after coronary artery bypass grafting

Finerenone in women and men with heart failure with mildly reduced or preserved ejection fraction

Finerenone, serum potassium, and clinical outcomes in heart failure with mildly reduced or preserved ejection fraction

Hormone therapy reshapes the skeleton in transgender individuals who previously blocked puberty

Evaluating performance and agreement of coronary heart disease polygenic risk scores

Heart failure in zero gravity— external constraint and cardiac hemodynamics

Amid record year for dengue infections, new study finds climate change responsible for 19% of today’s rising dengue burden

New study finds air pollution increases inflammation primarily in patients with heart disease

AI finds undiagnosed liver disease in early stages

The American Society of Tropical Medicine and Hygiene and the Bill & Melinda Gates Foundation announce new research fellowship in malaria genomics in honor of professor Dominic Kwiatkowski